Innovation has helped Cree (CREE, Financial) become a market leader in LED lighting, as it is creating value for customers. Having delivered robust results once again, Cree is aiming at maintaining its growth momentum and is seeking ways to bring innovation to its products to further enhance its prospects. The company sees bright opportunity with the growth of LED technology. It is making efforts to develop this opportunity, setting new performance standards in the market, which will help it to reach new heights.
Doing well already
The company has already justified itself in the semiconductor business. But now, it is focusing on the LED industry and is increasing lumens per wafer. To support this initiative further, Cree is investing aggressively in capacity and also in R&D to compete with peers. Cree is further investing in LEDs such as Xlamp XP-L.
The company thinks that it will be a growth driver for it in the future, as it has some exciting features up its sleeve. This LED is 50% brighter than the previous one, and it is attracting many customers to it. However, the company has made investments in this initiative and it is pleased with the results.
Innovation and beyond
Further, with its innovation strategy, Cree is developing a next generation technology platform. With this move, Cree is expected to redefine it robust performance in the LED segment. The company is well-positioned to announce first products in the market from this platform. Cree is quite worried that these products might see a soft start, but the company will be engaged in working on the design cycle, which will help it build a good momentum in the LED business.
Cree is further engaged in innovating the LED lighting system. This is expected to attract customers on the back of its exciting features, and this will again help Cree to improve its sales and gain market share in the future. Cree is also engaged in developing a next generation consumer LED bulb which delivers better light and brightness as compared to the regular light bulb. Cree is also working on keeping a competitive price for it. This can be a concrete reason which can compel the customers to shift towards LED.
To make customers aware of Cree’s products and technology, the company is shifting its focus to educate the customers. It is improving its operations by way of continued innovation, setting up new standards in the LED lighting. Cree is expecting this to drive its growth. With this momentum, Cree is expecting good adoption of LED lights in the coming years.
Conclusion
Seeing this growth momentum and the growing demand for LED, Cree is also working closely with its manufacturing partners to focus on the new technologies to hold its market leading position. In addition, Cree has also made an agreement with Lextar for the supply of mid-power LEDs. Cree thinks that this is a strategic move by it, and is expecting this initiative to support its long-term profitability objectives. The company has also taken cost cutting initiatives to improve its margins, while making investments in sales, marketing, and R&D to drive its growth forward.
