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Daktronic case

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Daktronic case
Read Daktronics (F): Weathering the Recession Positioned for a Bright Future (Taylor et al.) found in your casepack and and use only the information found therein to answer the questions.

1. Assess Dak’s external and internal environments by:
Performing a PEST+LE analysis with 4-5 examples of each dimension
Completing a 5-forces analysis to assess the competitive landscape

PEST+LE analysis
Political
Light pollution
In the U.S. the billboard segment of the industry was governed by federal, state, and local regulations. Anticipated were regulations on “light pollution,” reflecting concerns of businesses and residents in the area where large or multi-screen installations were placed. Other concerns that would probably be addressed with future regulations included electronic media’s potential for distracting drivers.
Legislation
Dak expanded the businesses to other countries, many different markets across the world have different set of regulations that are either relaxed or are either stringent.

Economic
Recession
The economic recession that began in 2008 continued to hamper the U.S. economy in 2010. The global recession was affecting many nations.
Competitors
Although Dak held the largest market share in the industry, more and more aggressive and big companies are entering the market, like Samsung and Mitsubishi.
Currency Valuation
When Dak made investment in other countries, exchange rate of different currencies is a problem to consider.

Social
Social factors are now impacting all industries, almost all the other countries are facing aging problems, poverty. People with different age in different countries may have different preferences to Dak’s product. Like in China, although digital display is popular in Shanghai or Beijing, but in some developing areas, people have no money to pay for that.

Technological
Like case said, what used to cost $3 million and last two years now costs $750,000 and lasts 10 years. That’s why you have the

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