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Brand Dilution?

N

NW1

Active Member
I’ll use Masimo as an example. So a medical technology company bought Sound United, who previously owned Bowers & Wilkins, Denon, Marantz, Polk Audio, HEOS, Definitive Technology, Classé, and Boston Acoustics. All were once separate and to various levels, were marketplace competitors. Through the proclivities of business and economics, they didn’t survive as independent and autonomous. One can’t help but think that there would be management's desire to standardize resources such as personnel, facilities, manufacturing, materials and suppliers to the point that whatever unique strengths or product identity these individual companies once provided has or is becoming weakened.

I just wanted to solicit opinions as to whether you all believe these brands and their products have benefitted or suffered because of the evolutions in their ownership.
 
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It seems like the smaller companies can't survive on their own. Development costs are so high now that in order to keep up with the competition of the big boys like, LG, Sansui, the smaller companies have to forge together to stay alive. Even Harmon International was bought out recently. Lets see there is, VPI, Magneplanar, Audio Research recently and some smaller independents. Even Mark Levinson is owned by Harmon which is owned by Sansui , or is it LG? I have no clue who Owns Ortofon, Thorens. KEF is owned by some else too as is Tannoy. Is Clear Audio a Stand a lone now? Magico and Wilson are their own companies. Mcintosh Groups was just acquired by a group in Dallas. Seems like every time a group is acquired some of the smaller brands disappear. Snell for instance.

Other forms of entertainment have taken monies away from the Hifi industry, too. Especially the gaming market and HT systems. If the Stereo companies don't do HT they have a much smaller following to depend on for sales. We lost Telarc because of Streaming and the CD killed Sheffield. Reference Recording specializes on talented groups but most are not at the top of the list. Will they survive? I hope so. I wish our Congress and President would do something to scale back the big Conglomerates and Monopolies in order to allow smaller companies to survive and new technological ideas to be nurtured instead of being stymied by the bean counters.

I maybe all wrong about this, but it won't be the first time.
 
"upward consolidation" of all industries and business segments is a primary principle of Wall Street. It's how companies grow. Microsoft, Apple, Google, have bought many hundreds of small companies. Likewise if you are Proctor and Gamble, or Mondolez, or Nestle. or ConAgra. Consolidation powers the Stock Market.
 
From the standpoint of a consumer, the brand usually suffers. However, with electronics prices consistently heading downwards, from a corporate perspective, it may very well be "consolidate or perish". Looks what's happening with Onkyo.

So if you'd rather have a watered-down brand than no brand at all, as much as I hate to say it, consolidation may be a saving grace.
 
YY1 said:
"Megatrends", a book in the 80's predicted this.
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Once one knows how else could it. It is a natural function built into human activity. At first there is a frontier built by individuals then comes Mr. Capital with his area of specialty and a rake. It happens in every area of life.
 
twiiii said:
It seems like the smaller companies can't survive on their own. Development costs are so high now that in order to keep up with the competition of the big boys like, LG, Sansui, the smaller companies have to forge together to stay alive. Even Harmon International was bought out recently. Lets see there is, VPI, Magneplanar, Audio Research recently and some smaller independents. Even Mark Levinson is owned by Harmon which is owned by Sansui , or is it LG? I have no clue who Owns Ortofon, Thorens. KEF is owned by some else too as is Tannoy. Is Clear Audio a Stand a lone now? Magico and Wilson are their own companies. Mcintosh Groups was just acquired by a group in Dallas. Seems like every time a group is acquired some of the smaller brands disappear. Snell for instance.

Other forms of entertainment have taken monies away from the Hifi industry, too. Especially the gaming market and HT systems. If the Stereo companies don't do HT they have a much smaller following to depend on for sales. We lost Telarc because of Streaming and the CD killed Sheffield. Reference Recording specializes on talented groups but most are not at the top of the list. Will they survive? I hope so. I wish our Congress and President would do something to scale back the big Conglomerates and Monopolies in order to allow smaller companies to survive and new technological ideas to be nurtured instead of being stymied by the bean counters.

I maybe all wrong about this, but it won't be the first time.
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I do not feel you are wrong at all, unfortunately between must have regulations and everything being so expensive it is hard for people to do the best they can, and smaller companies can't afford to open the doors let alone actually do something great if they can open them.
 
I think long term it's not a good thing because of the inevitable cost cutting. Short term,if the company is failing, then it's a good thing.
 
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