Vizio has grown in the U.S. flat-screen television market with a focused low-cost strategy. The roles of Vizio and its partners along the value chain are described to understand the sources of its competitive advantage. Vizio’s fast growth in a dynamic industry raises the question of what its strategic priorities should be going forward.
The case allows for diagnosis of how Vizio achieves reasonable quality at relatively low cost, with some scope for quantification. The firm and industry dynamics enable discussion of a shift in strategic priorities over time. The case is deliberately short and based on exhibits to facilitate group work.