MICROSOFT

DESCRIPTION

Although it is subject to many of the same hurdles most industries face (such as market saturation and economic downturns), the consumer electronics industry has fared better than most in times of flux. Technological advances and ever-changing product lines have helped the industry avoid major saturation problems by making existing products appear outdated. The success of digital products -- video players, TVs, phones, and home theater systems -- has proven that consumers will often succumb to the urge to own the latest and greatest electronic gadgets, in spite of economic concerns. The digital craze and the consumer electronics industry surged ahead in recent years with all-time records for consumer electronics sales. This surge has been led by DVD players, one of the fastest-selling electronics products ever. In 2003 DVD rentals surpassed videocassette rentals for the first time. Japan is a production powerhouse for the consumer electronics industry, boasting several of the companies that dominate the field. Sales at the top consumer electronics makers, Sony Corporation and Matsushita Electric Industrial (maker of Panasonic and other brands), are light years ahead of the next 10 largest consumer electronics companies. Philips Electronics and THOMSON are the only non-Japanese companies in the mix. On the American front, only Bose Corporation, the world's top speaker manufacturer, and audio equipment specialist Harman International, boast more than $1 billion in annual sales. Though they stand on fairly solid ground when it comes to consumer demand, the behemoths of the industry have begun to feel another kind of tremor. Gone are the days when Sony could rely solely on its trademark name to convince shoppers that they should spend the extra dollars for its design. Rivals are increasingly offering a variety of alternatives, which leads the average consumer to expect more bang for the buck. It seems competitors are springing up out of the woodwork.

SUN MICROSYSTEMS

DESCRIPTION

When it comes to network computing, it's hard to find an area where the Sun doesn't shine. Sun Microsystems is a leading maker of UNIX-based servers used to power corporate computer networks and Web sites. It also makes workstation computers and a widening range of disk- and tape-based storage systems. Unlike most hardware vendors, Sun makes computers that use its own chips (SPARC) and operating system (Solaris). Its software portfolio includes application server, office productivity, and network management applications. Sun also developed Java, a programming language for creating software that can run unchanged on any kind of computer.