With LED lamps factories, change business model

The popularization of LED technology made the lamps manufacturers rethink their business models. With a product that promises a durability of up to 20 years, companies like General Electric (GE) and Philips are structuring to sell lighting projects and services, and not just the product itself. The strategy requires new skills and commercial enterprises of engineering to compete in this market.
Today, between 25% and 30% of lighting business of General Electric (GE) and Philips in Brazil come from projects. The largest piece is pure and simple sale of bulbs for the final consumer. "We expect the participation of larger projects. There are many opportunities with LED technology, "said Renato Carvalho, Director of Philips Lighting.
Companies have taken advantage of the World Cup to sell lighting projects of sporting arenas in the country. Philips closed nine contracts and GE starred in five-some stadiums, such as the maracana were illuminated by more than one company.
After the World Cup, they are reinforcing their teams to compete for projects for the Olympics and structuring to enter the lighting area. Only the Olympics could generate $ 9 million in contracts in the area of lighting, as an estimated GE.
Renewal
GE's origins date back to incandescent lamps factory established in 1890 by Thomas Edison, responsible for the invention. A year later Philips entered the business. The two companies gambled heavily on technological innovations and advanced to new segments. Today, GE owns a global annual revenue of US $ 146 billion and operates in about ten segments in Brazil-aircraft turbines drilling solutions oil wells. The portfolio of Philips, 23.3 billion Bill that goes from small appliances such as a blender and Shaver, hospital equipment and light bulbs.
In the sector of lighting, fluorescent lamp and LED left the obsolete incandescent. GE and Philips have responded to the technological transition with the closure of factories of incandescent bulbs, abandoning the business that gave rise to them. In Brazil, GE closed a factory in Rio in 2009 and Philips did the same in Maua in 2010.
"To be in the vanguard, companies must invest in innovations that make themselves obsolete and being able to let go of the current business," said the President of the National Association for research and development of innovative companies (Anpei) and Vice President of Natura's innovation, Gerson Valença Pinto.
The great dilemma of the companies is about the right time to introduce a technology on the market, since she can kill the deal that sustains the company, says the Coordinator of the Center for research in strategy of Insper, Luiz Turatti. "Some companies lose the timing for the release of technologies. This is where new leaders take on a market, "he said. The classic case is that of Kodak, who invented the digital camera, but entered late in this technology and lost market.
The invention of the LED has already brought new competitors to the sector. The Brazilian Unicoba, focused on electronic components, began manufacturing lamps almost 120 years after Philips and GE, but was the first to produce LED in Brazil, in 2009. Philips announced in Varginha production in 2011 and GE has not yet LED factory in the country. "The space opened for LED electronic companies in the field of lighting," said Eduardo Park, CEO of Unicoba.