Audiovox 2006 Annual Report Download - page 5

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Leverage our distribution network. We believe our distribution network which includes power
retailers, mass merchandisers, distributors, car dealers and OEM’s will allow us to increase market
penetration.
Grow our international presence. We continue to expand our international presence in Europe
through Audiovox Germany and will continue to pursue additional business opportunities
through acquisitions as well as new market opportunities.
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 or 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 categories in the mobile and consumer electronics and accessories
market. The mobile and consumer electronics 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 products such as those we offer.
The introduction of new products and technological advancements are the major growth drivers
in the electronics industry. Currently, new products include, but are not limited to, satellite radio,
installed and portable DVD mobile video systems, rear observation and collision avoidance systems,
flat panel TVs, hand held GPS, innovative home speaker systems, navigation systems with real time
traffic information and digital multi-media products.
Products
Our electronic products consist of two major categories: Mobile Electronics and Consumer
Electronics.
Mobile electronics products include:
• mobile multi-media video products, including in-dash, overhead, headrest and portable mobile
video systems,
• autosound products including CD radios, speakers, amplifiers and CD changers,
• satellite radios including plug and play models and direct connect models,
• automotive security and remote start systems,
• car to car portable navigation systems,
• rear observation and collision avoidance systems,
• automotive power accessories,
• Home electronic accessories such as cabling and performance enhancing electronics, and
• Accessories such as remotes, iPod specialized products, wireless headphones and other
connectivity products.
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