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LED Light manufacturer has formed similar partnerships to make LEDs smarter and easier to integrate in the commercial sector. Cree isn't just competing with the well-established legacy players like GE, Osram and Philips. It is also facing competition from consumer electronics firms like LG and Samsung, as well as a cadre of Chinese companies funded by China's central government. Although these Chinese companies have yet to present a major threat, the broadening ecosystem of manufacturers puts pressure on a company like Cree to ramp up production -- which means the company operates on fairly slim margins.But Merritt said Cree's approach is to keep innovating and producing "at a pace [competitors] can't match.""Once you start playing defense, you are doomed," said Merritt. "As long as you LED Wall Light keep going, you'll stay ahead. You just have to keep playing offense."Merritt said the next steps for LED innovation are controllability and building new architectural applications.Controllability will be addressed through partnerships with providers of commercial intelligent lighting platforms. However, Cree does not yet have a residential product like Philips' hue bulb, which can be controlled in unique ways by a smartphone.Architectural applications -- building LEDs into ceiling tiles, walls, stairwells, streetlights and parking structures in new ways -- are perhaps the biggest source of untapped innovation downstream."There is no inherent reason why they should fit the same form as traditional lighting. With LEDs, there's a lot of stuff you couldn't do before. People are pretty excited about that," he said.Looking at Cree's position and future strategy for growth, analysts are modestly optimistic about the company.Even though Cree was able to grow revenue by 24 percent and stay out of debt in the first quarter of its 2014 fiscal year, Cree's stock dropped 17 percent in late October due to its inability to meet guidance. The firm also said it would be spending more money than expected on marketing its LED Floor Lamp Energy Star light bulb, as well as ramping production of its consumer bulbs in Home Depot stores -- a product that offers very slim margins.However, Daniel Amir, an analyst with Lazard Capital, was positive about Cree's prospects in a recent research note, saying: "We continue to believe that Cree is poised to benefit from the LED lighting adoption with its vertical strategy and that one should take a multiple-quarter view of its consumer light bulb approach." In 2008, after a decade of experimentation and, later, acquisition of a competitor, Cree introduced its first indoor lighting-class LED fixtures.Around that time, market growth was modest and lighting companies were just beginning to realize the commercial promise of the technology.Six years later, Cree has picked up a 10 percent share in the global LED market and is one of the more aggressive cost leaders in the industry. anty881209wong 131127 ery-corner-of-the-house/">polar sports watches