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Three Operational Models Used By The Companies That Are Involved In The Business Of Producing Led Bu
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There are some three operational models used by the companies that are involved in the business of producing LED bulbs. The said bulbs are growing in popularity, and it can be asserted that in a few decades time, they are likely to totally replace the traditional halogen/incandescent bulbs. The reasons for that include the fact that they are rather efficient, in terms of how they use energy, the fact that they don’t burn out easily, and the fact that they produce ‘elegant’ light. As the demand for these LED-based bulbs grows, we are also witnessing growth in the number of the companies specializing in their production. We venture to identify the operational models under which most of those companies operate.
The first operational model used by the companies that are involved in the business of producing LED bulbs is the one where they only/strictly make the said bulbs on order. This model is more commonly used by the manufacturers of the ‘more unique’ varieties of LED-based bulbs for which demand is not very high. Examples in that respect are the E14 7W bulbs. What normally happens is that the retailers and wholesalers who want to restock/stock the said E14 7W bulbs have to make order to the LED bulb manufacturers, for the latter to initiate the production of the said E14 7W bulbs. Of course, as more and more people start to appreciate the goodness of the E14 7W bulbs, it may be just a matter of time before the LED bulb manufacturers start making them, even without orders. They’d be doing so knowing that, as a matter of probability, they are almost certain to get market for the bulbs (given the demand for them). What is worth noting is the fact that the LED bulb manufacturers who operate under this ‘orders strictly’ model tend to be those who are afraid of burning their hands. Once the risk of ‘burning hands’ is done away, manufacturers tend to be more proactive in their operations.
The second operational model used by the companies that are in the business of producing LED bulbs is the one where they first produce the bulbs (without orders), and then look for markets later. This is proactive manufacturing. Here, we also have some companies that produce the bulbs, and simply put them in their warehouses: knowing that, given past trends, they are likely to get orders for such stockpiled bulbs sooner than later.
The third operational model used by the companies that are in the business of producing LED bulbs is the one that can be referred to as being a ‘hybrid model.’ The LED bulb manufacturers operating under this model produce some bulbs under orders. They also produce some others without orders (with the objective of proactively marketing the bulbs produced without orders later). This is the model most manufacturers seem to prefer operating under: especially once they have been operation long enough for them to note trends, in terms of demand for various types of bulbs. There are some types of LED bulbs whose demand is always so high that a manufacturer knows that looking to get markets for them (after production) isn’t likely to be a challenging or risky undertaking.
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