DAKTRONICS

To inform and entertain the world by being the leader in immersive audio-visual communication systems.

DAKTRONICS SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for DAKTRONICS was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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This Daktronics SWOT Analysis reveals a resilient market leader at a critical inflection point. Its formidable brand, domestic manufacturing, and service arm are powerful assets. However, significant headwinds exist from margin compression, intense international competition, and a need to accelerate software innovation. The primary strategic imperative is to pivot from a hardware-centric, project-based model to an integrated solutions provider, driven by high-margin, recurring service and software revenue. The largest opportunities lie in international expansion and capitalizing on the transportation infrastructure boom. Successfully navigating this transition will secure Daktronics' leadership for the next decade, transforming it from a manufacturer into a true technology and services company.

Samsung Electronics Leyard Optoelectronic Unilumin Group Absen Planar Systems

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To inform and entertain the world by being the leader in immersive audio-visual communication systems.

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Strengths

BRAND: Unmatched reputation for reliability in high-profile sports venues
BACKLOG: Record order backlog of ~$400M+ provides near-term visibility
MANUFACTURING: Domestic production offers control vs. overseas rivals
SERVICE: Established, high-margin service business with a large base
SALES: Experienced direct sales force with deep customer relationships

Weaknesses

MARGINS: Gross margin pressure from rising material and logistics costs
DEPENDENCE: Revenue heavily reliant on large, cyclical project wins
SOFTWARE: Lagging user experience in control software vs. new entrants
LEAD-TIMES: Supply chain issues extending project delivery timelines
INNOVATION: Slower to adopt cutting-edge tech like MicroLED at scale

Opportunities

INTERNATIONAL: Untapped growth in transportation/sports in EMEA/APAC
SERVICES: Expand recurring revenue through enhanced software/support tiers
TRANSPORTATION: Gov't infrastructure spending boosts airport/transit work
DOOH: Growth in Digital Out-of-Home advertising driving billboard sales
UPGRADES: Large installed base is aging, creating a cycle of replacements

Threats

COMPETITION: Low-cost Asian manufacturers eroding price points and share
RECESSION: Economic downturns delay large capital expenditure projects
SUPPLY-CHAIN: Continued volatility in semiconductor and component costs
TECHNOLOGY: Rapid shifts to new display tech could make current lines obsolete
INTEREST-RATES: Higher rates increase financing costs for customers

Key Priorities

PROFITABILITY: Defend margins via operational efficiency and service growth
GROWTH: Aggressively expand international and transportation verticals
INNOVATION: Accelerate software platform modernization and new tech R&D
RECURRING: Systematically convert hardware sales into long-term service contracts

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DAKTRONICS OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The Daktronics OKR plan is a focused and powerful blueprint for strategic transformation. It correctly prioritizes the most critical business drivers: fortifying margins, expanding into growth markets, and, most importantly, pivoting to a recurring revenue model. The objectives are inspiring and directly address the core challenges and opportunities identified in the SWOT analysis. The key results are specific, measurable, and blend financial outcomes with crucial product and service milestones, such as the launch of the AI maintenance service. This plan provides the clarity and alignment needed to evolve from a hardware manufacturer to a true technology solutions leader, creating significant long-term shareholder value if executed with discipline.

Samsung Electronics Leyard Optoelectronic Unilumin Group Absen Planar Systems

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To inform and entertain the world by being the leader in immersive audio-visual communication systems.

FORTIFY PROFITABILITY

Achieve best-in-class margins and operational excellence.

MARGINS: Increase gross profit margin from 26% to 29% by optimizing our global supply chain and manufacturing
EFFICIENCY: Reduce SG&A as a percentage of revenue from 18% to 16.5% through disciplined cost controls
SERVICES: Grow high-margin service revenue by 15% by increasing service contract attachment rates on new sales
AI-OPS: Implement an AI-powered QC system in manufacturing to reduce scrap and rework costs by 10%

ACCELERATE GROWTH

Dominate new markets and expand our global footprint.

INTERNATIONAL: Increase new order bookings from outside North America by 20% through targeted sales efforts
TRANSPORTATION: Secure three flagship transportation projects (airport or transit) valued at over $5M each
CHANNELS: Grow revenue from our reseller partner channel by 25% by launching a new partner program
UPSELL: Launch a proactive upgrade program for 100 key clients with systems older than 7 years to drive refresh sales

LEAD INNOVATION

Define the future of visual experience technology.

PLATFORM: Launch next-gen control software platform with a user NPS score of 40+, a 15-point improvement
MICROLED: Secure the first $1M+ commercial order for our new MicroLED product line for indoor applications
AI-CONTENT: Release a generative AI content creation module in our software, adopted by 25% of new systems
R&D: File 5 new patents related to display system efficiency, control software, or interactive technology

DRIVE RECURRING REVENUE

Transform our business with a services-first mindset.

ARR: Increase total Annual Recurring Revenue (ARR) from services and software from $80M to $100M
ATTACH: Achieve a 70% attachment rate of multi-year service contracts on all new major system sales
AI-SERVICE: Launch an AI-powered predictive maintenance service and sign up 50 pilot customers for the new offering
UPTIME: Guarantee and achieve 99.99% uptime for all customers on our new premium tier support contract

METRICS

Annual Recurring Revenue (ARR) from Services: $100M
Gross Profit Margin: 29%
New Order Bookings: $850M

VALUES

Customer Focus
Honest & Fair
Helpful
Team Player

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DAKTRONICS Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Samsung Electronics Leyard Optoelectronic Unilumin Group Absen Planar Systems

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To inform and entertain the world by being the leader in immersive audio-visual communication systems.

Toggle Theme

What Went Well

REVENUE: Achieved record revenue, exceeding guidance and market expectations
BACKLOG: Maintained a historically strong order backlog, ensuring visibility
PROFITABILITY: Significantly improved gross profit margins year-over-year
SPORTS: Secured several high-profile, multi-million dollar stadium wins
CASH-FLOW: Generated strong operating cash flow, strengthening the balance sheet

Not So Well

INTERNATIONAL: Slower than expected order growth in key overseas markets
OPERATING-EXPENSE: Higher SG&A expenses due to inflation and investments
TRANSPORTATION: Some project timelines in the transportation sector slipped
INVENTORY: Still working through some higher-cost inventory from prior periods
GUIDANCE: Cautious forward-looking guidance reflects macroeconomic uncertainty

Learnings

PRICING: Price discipline and cost controls are directly boosting margins
SERVICES: Service contracts are a key driver of profitability and stability
SUPPLY-CHAIN: Proactive supply chain management is mitigating major disruptions
EFFICIENCY: Factory floor optimizations are yielding tangible cost savings
MARKETS: Market diversification is key to weathering cyclicality in sports

Action Items

COSTS: Continue disciplined expense management across all departments
INTERNATIONAL: Dedicate more sales resources to high-potential EMEA/APAC deals
SERVICES: Create new, bundled service offerings to attach to every sale
INVENTORY: Accelerate sell-through of older, high-cost component stock
INNOVATION: Increase R&D investment in next-gen software control platforms

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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DAKTRONICS Market

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Founded: 1968 by Aelred Kurtenbach and Duane Sander
Market Share: Leading share in North American sports venues; ~10-15% global share.
Customer Base: Pro sports teams, universities, transportation authorities, advertisers.
Category:
Digital Displays
SIC Code: 3699
NAICS Code: 334419 Other Electronic Component Manufacturing
Location: Brookings, South Dakota
Zip Code: 57006
Employees: 2500

Competitors

Samsung Electronics View Analysis

Leyard Optoelectronic Request Analysis

Unilumin Group Request Analysis

Absen Request Analysis

Planar Systems Request Analysis

Products & Services

No products or services data available

Distribution Channels

DAKTRONICS Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Problem

Venues struggle to engage modern audiences
Static ads have low impact and ROI
Managing complex A/V is a major headache

Solution

Spectacular, integrated LED display systems
Easy-to-use content management software
End-to-end design, install, & support

Key Metrics

Annual Recurring Revenue (ARR) from services
Gross Profit Margin %
New Order Bookings ($)

Unique

50+ years of proven, iconic installations
The industry's most trusted brand for reliability
Total solution from one accountable partner

Advantage

Deep engineering expertise in large venues
Vast installed base for service revenue
USA-based manufacturing and R&D

Channels

Direct enterprise sales force
Network of authorized resellers/integrators
Digital marketing and industry events

Customer Segments

Professional & collegiate sports venues
Transportation hubs (airports, transit)
Advertisers (Digital Out-of-Home)
Commercial businesses and event centers

Costs

Raw materials (LEDs, steel, electronics)
Manufacturing labor and overhead
R&D for hardware and software
Sales, General & Administrative (SG&A)

DAKTRONICS Product Market Fit Analysis

Updated: October 4, 2025

Daktronics provides the world's most reliable and spectacular digital display solutions. For iconic venues and brands that can't afford failure, it offers a fully integrated system from a single, proven partner, turning passive spaces into unforgettable, revenue-generating experiences. It's not just a screen; it's a guaranteed performance and a long-term partnership in innovation and support.

UNMATCHED RELIABILITY: Our systems are built to perform in the world's most demanding environments.

TOTAL SOLUTION: We provide a single point of contact for design, manufacturing, installation, and service.

PROVEN PARTNERSHIP: We have a 50-year track record of delivering iconic experiences for top global brands.

Before State

Static signage with limited impact
Fragmented, unreliable A/V systems
Missed fan engagement opportunities

After State

Dynamic, immersive visual experiences
Integrated, reliable control systems
Maximized audience engagement & revenue

Negative Impacts

Lost advertising and sponsorship revenue
Poor fan experience, lower attendance
High maintenance on outdated tech

Positive Outcomes

New, high-margin digital ad revenue
Unforgettable fan and visitor moments
Centralized, efficient operations

Key Metrics

Customer Retention Rates

~90% for service contracts

Net Promoter Score (NPS)

Estimated 45-55 in key segments

User Growth Rate

Tied to new large project wins, ~5-10% annually

Customer Feedback/Reviews

10+ reviews on G2, generally positive

Repeat Purchase Rates

High, with customers upgrading systems every 7-10 years

Requirements

Significant capital investment
Technical expertise for integration
Content strategy for dynamic displays

Why DAKTRONICS

End-to-end project management
Custom engineering for unique venues
24/7 technical and software support

DAKTRONICS Competitive Advantage

50+ years of complex project expertise
USA-based manufacturing and support
Proven reliability in iconic venues

Proof Points

Powering the largest NFL stadium displays
Trusted in Times Square and airports
Long-term partnerships with MLB, NFL, NBA

DAKTRONICS Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Strategic pillars derived from our vision-focused SWOT analysis

Shift from products to integrated A/V ecosystems

Grow recurring revenue via software and support

Deepen penetration in EMEA and APAC transportation

Lead in MicroLED, control systems and software

What You Do

Design, manufacture, and service integrated digital display systems.

Target Market

Organizations needing to communicate with large audiences dynamically.

Differentiation

End-to-end solution provider (design, manufacture, install, service)
Unmatched reliability and long-term support reputation
Deep expertise in complex, large-scale venue integrations

Revenue Streams

One-time system sales (hardware/software)
Recurring service and support contracts

DAKTRONICS Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Company Operations

Organizational Structure: Functional structure with business units focused on key markets.
Supply Chain: Global sourcing with primary manufacturing in the US, Ireland, and China.
Tech Patents: Holds numerous patents in display technology, control systems, and mechanics.
Website: https://www.daktronics.com

Top Clients

Board Members

DAKTRONICS Competitive Forces

Threat of New Entry

MODERATE: High capital is needed for manufacturing, but asset-light software/integrator models present a lower barrier to entry.

Supplier Power

MODERATE to HIGH: Key components like LEDs and driver ICs are sourced from a few large suppliers, giving them pricing leverage.

Buyer Power

HIGH: Customers are often large organizations making significant capital investments, enabling them to negotiate pricing and terms aggressively.

Threat of Substitution

LOW to MODERATE: While alternative ad mediums exist (mobile, print), no true substitute for large-format displays in venues is available.

Competitive Rivalry

HIGH: Intense rivalry from numerous global players, especially low-cost Chinese firms like Leyard & Unilumin, leading to price pressure.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The Daktronics AI SWOT Analysis underscores a significant, yet largely untapped, opportunity. The company's core strength is its vast proprietary dataset from its global installed base, a perfect foundation for high-value predictive maintenance services. However, a critical weakness in AI-specific talent and legacy system limitations are major obstacles. The most immediate path to value is twofold: leveraging AI for internal operational efficiencies in manufacturing and launching an AI-powered service offering to increase recurring revenue. The long-term threat is not from hardware competitors, but from software-first companies that could use AI to commoditize the display itself. Daktronics must act decisively to build AI capabilities, transforming its data from a passive asset into an active, revenue-generating engine.

Samsung Electronics Leyard Optoelectronic Unilumin Group Absen Planar Systems

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To inform and entertain the world by being the leader in immersive audio-visual communication systems.

Strengths

DATA: Vast dataset from thousands of displays on usage and performance
MANUFACTURING: Opportunity to implement AI for factory automation & QC
SERVICE: Can use AI for predictive maintenance alerts from connected displays
SCALE: Global reach to deploy and test AI-powered solutions at scale

Weaknesses

TALENT: Shortage of in-house AI/ML engineers and data scientists
SYSTEMS: Legacy software and hardware not designed for AI integration
DATA-STRUCTURE: Inconsistent data collection across product generations
STRATEGY: Lack of a clear, unified AI vision across business units

Opportunities

CONTENT: Generative AI for automated, dynamic ad and info creation
OPERATIONS: AI-optimized scheduling for service techs and installations
SALES: AI-powered lead scoring and configuration tools for complex bids
INSIGHTS: Monetize anonymized audience analytics data from venues

Threats

COMPETITORS: Nimble rivals embedding AI into their core offerings faster
SOFTWARE: Pure-play software firms using AI to disrupt the value chain
SECURITY: AI systems introduce new vulnerabilities for cyber attacks
OBSOLESCENCE: AI could reduce the need for complex hardware controllers

Key Priorities

MAINTENANCE: Launch an AI-driven predictive maintenance service offering
CONTENT: Integrate generative AI into control software for content creation
EFFICIENCY: Deploy AI in manufacturing and supply chain for cost savings
TALENT: Acquire or develop AI talent through strategic hires and training

Create professional SWOT analyses in minutes with our AI template. Get insights that drive real results.

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DAKTRONICS Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Daktronics FY2024 Annual Report (10-K filing)
Daktronics Q4 2024 Earnings Call Transcript and Investor Presentation
Company website (daktronics.com) for mission, leadership, and products
Market research reports on the global digital signage market
Yahoo Finance and SEC EDGAR for financial data and filings

Profit: FY2024 Net Income: $50.3 Million

Market Cap: $450 Million (as of late 2024)

Stock Performance

Annual Report: View Report

Debt: Minimal long-term debt; strong balance sheet.

ROI Impact: Customer ROI driven by ad revenue, fan engagement, and sponsorships.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Daktronics is a solid Market Leader with a strong brand and clear path to margin improvement. The Iconic Index is constrained by a 'Category' level ambition and significant competitive threats that balance its strengths. The OKRs are well-aligned but focus more on optimizing the current model than on world-shaping disruption. The low Growth Multiplier reflects a mature market and the challenge of pivoting a large hardware business to a recurring revenue model, despite high survival probability.

SWOT Factors

Upside: 69.3 Risk: 70.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively scale recurring revenue from services and software

Accelerate adoption of AI for both internal ops and new products

Deepen penetration in high-growth international markets

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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