The company Loewe was once among the most innovative companies in the world. Between 1925 and 1931 no one filed patents in the field of television technology. At the Berlin Radio Exhibition in 1931, Manfred von Ardenne finally presented the so-called "Flying Spot Scanner". It was the world's first practicable television technology. But not much has remained of this glorious history. As early as 2013, the company had to file for bankruptcy for the first time. At that time, however, found new investors. But now the tapes are standing still again. The insolvency administrator has only four months left to find new investors. Otherwise, the long company history may end inglorious this year. However, it is not just wrong decisions within the company, but also global developments.
Research and development are becoming business drivers
Thus, increasing globalization has led to new competition. At first this came mainly from Japan, later also from South Korea and China. Companies often benefited from lower labor costs on the ground and were able to conquer the mass market in particular. The German manufacturers therefore tried mostly to flee in high-priced niches. This was also the case with Loewe last time. But here comes a second problem. Technical development is progressing faster and faster. This increases the importance of research and development. The Asian mass producers have responded by investing enormous sums of money in these areas. Samsung alone operates eleven research sites worldwide. A comparatively small company like Loewe can not compete with that.
Even a large-scale German mobile phone production failed
In particular, Chinese companies are profiting from the boom in the home market and can use the money earned there for the conquest of foreign markets. Loewe is not the only company that has failed in the production of electronic products in Germany. With Bosch and Siemens, two billion-dollar companies built their own cell phone productions. No one was successful. First, Siemens took over the Bosch division and finally sold the joint venture to a Taiwanese company. A year later, the final outcome followed. The construction of solar modules in Germany also proved to be a flop. In technically more demanding areas – such as in the automotive sector – German companies, on the other hand, were able to assert themselves. But this does not have to stay that way forever.
Via: Evening Leaf