Audiovox 2008 Annual Report Download - page 10

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Pursue strategic and complementary acquisitions. We continue to monitor economic and industry conditions in order to
evaluate potential synergistic business acquisitions that would allow us to leverage overhead, penetrate new markets and
expand our existing business distribution.
Continue to outsource manufacturing to increase operating leverage. A key component of our business strategy is
outsourcing the manufacturing of our products, which allows us to deliver the latest technological advances without the fixed
costs associated with manufacturing.
Monitor operating expenses. We maintain continuous focus on evaluating the current business structure in order to create
operating efficiencies, including investments in management information systems, with the primary goal of increasing
operating income.
Industry
We participate in selected product categories in the mobile, consumer and accessory electronics markets. The mobile and consumer
electronics and accessory industries are large and diverse and encompass a broad range of products. The significant competitors in our
industries are Sony, Panasonic, JVC, Kenwood, Alpine, Directed Electronics, Phillips, Monster Cable and Delphi. There are other
companies that specialize in niche product offerings such as those we offer. The introduction of new products and technological
advancements are the major growth drivers in the electronics industry. We continue to introduce new products across all product
lines.
Products
Effective March 1, 2007, the Company reported “Accessories” as a separate product group due to the Thomson Accessory, Oehlbach
and Technuity acquisitions. In addition, the Company’s former mobile and consumer product categories are now combined and
recorded in the “Electronics” product group. As such, certain reclassifications have been made to prior year amounts as the Company
currently reports sales data for the following two product categories:
Electronics products include:
•mobile multi-media video products, including in-dash, overhead, headrest and portable mobile video systems,
•autosound products including radios, speakers, amplifiers and CD changers,
•satellite radios including plug and play models and direct connect models,
•automotive security and remote start systems,
•automotive power accessories,
•car to car portable navigation systems,
•rear observation and collision avoidance systems,
•Liquid Crystal Display (“LCD”) flat panel televisions,
•home and portable stereos,
•two-way radios,
•digital multi-media products such as personal video recorders and MP3 products,
•camcorders,
•clock-radios,
•digital voice recorders,
•home speaker systems,
•portable DVD players, and
•digital picture frames.
Accessories products include:
•High-Definition Television (“HDTV”) Antennas,
•Wireless Fidelity (“WiFi”) Antennas,
•High-Definition Multimedia Interface (“HDMI”) accessories,
7
Source: AUDIOVOX CORP, 10-K, May 14, 2008