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#17
12-31-2014, 02:25 PM
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be ever..... Everything was well supported, each distributor, service center, you name it, they all were well funded.... There was money allocated to each, even warranty work was covered.... Even if they didn't improve on the set, a portion of profits covered everything so they could make new sets, and keep customers very happy.... A company under normal conditions sells a product, makes a profit. Part of that profit gets put into making new products, R&D (research and development) Now what dumping did was to place items on the US market that were made for a good amount of money.... The Trinatron for example should have sold for way-way over the cost of 2 Zeniths because of all the big hole Sony dug building the Chromatron, and then selling only about 15 of them.... But instead they sold their electronics here for much less than it cost them to make it.... And they still made money as a company because they sold their Trinatrons in Japan for 2 1/2 times the price of a Zenith..... The Japanese people who bought a Sony, paid for theirs, and part of each one sold here.... Kinda nice of them..... But they didn't know it, and were none to happy when the found out.... Noted above.. Up until now Zenith could say we add up a little money for each support department (and most tv makers had the same expenses) add in the cost of making the set, designing new stuff for next year, sales support, advertising, and all that is $349. for this 19" tv.... But then came dumping.... Sets sold for something where all costs do not add up.... But what did that do for Zenith..... Well, if they wanted to sell a set, they were faced with a new customer walking in the door and saying "well that new Sony is on sale for $199... And yer wanting me to pay $349. for the same size set... Zenith had to decide if they wanted to sell sets at a similar price to "make a sale" or hold out at the higher price and sell many less sets... Bad for a company when a good number of customers chose an item on price only.... Remember we're talking 19" tabletop set.... No furniture-long term investment. So they decided what they would cut to match a price in the end.... Use cheaper parts..... Cut back on updating manufacturing system (assembly line improvements)... Eliminate the feedback QC loop and not fix problems in new sets... (leading to the long lived picture tube problem) and many others.... Better looking sets.... Eliminate focus groups on design... No one getting the message big consoles were not in favor anymore.... Did they close that department.... Someone order more big cabinets... So they came close to meeting the new price, but profits decreased to the point where at one point they would not be innovating at all.... Customers would then surely leave because the sets were plainly outdated.... Dumping actually caused the company to become unable to fund product improvements.... PBS did a really good Frontline ( I think it was) on Matshusta several years ago and it outlined almost all of what Carmine wrote above.... There is a link to the text of the program above.... possibly a page or two back... Zenith's only real fault is that they did not see that the government did not work for them, and that they did not see the large letter ALL CAP writing on the wall.... every wall... If the activity of making and selling a tv costs more that I can sell it for, I'll soon be broke.... Of course after they go broke, the cost of a Sony can come up to what a normal retail product model would look like.... Maybe a little higher as now your competition is making crappy outdated products..... and no one really wants them.... The end... .
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Yes you can call me "Squirrel boy" Last edited by Username1; 12-31-2014 at 03:00 PM. 
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