¶ … Growing Market Share at Olympus
When you can buy a Barbie doll that doubles as a video camera, I think that it's official that anything can be a camera. -- Jason Griffey, 2012
The heyday of amateur single lens reflex cameras and developable film has passed, replaced by increasingly sophisticated cameras in all types of handheld wireless devices, especially smartphones. Some camera manufacturers have responded to these trends in different ways, with some changing to digitally-based technologies for their cameras while others have simply gone out of business. Major manufacturers such as Olympus have a number of business lines besides amateur photography, but even these firms are struggling to stay afloat on a digital sea of photographic technology. To determine what these companies should do in the face of these trends, this paper provides a review of the relevant literature concerning the kind of markets in which Olympus sells cameras and a characterization of the competitive environment of each. A discussion concerning what perspective this provides on Olympus's decision to drop manufacture of its sub-$200 dollar cameras is followed by a comparison of Olympus with its competitors to determine what, if any, competitive advantages Olympus has and whether these can be considered sustainable competitive advantages. Finally, recommendations are provided for the CEO of Olympus concerning an optimal future competitive strategy. A summary of the research and important findings concerning these issues are presented in the conclusion.
Review and Analysis
What kind of market(s) are cameras sold in and how would you characterise the competitive environment in each market.
Today, Olympus Corporation (hereinafter alternatively "the company" or "Olympus") is a global manufacturer and marketer of a wide range of precision machineries and instruments (Company profile 2013). The company is divided into five basic business segments as follows:
1. Medical. This segment provides endoscopic video imaging, medical information, fiberscope, broncho endoscope, and endoscopic ultrasound systems; ultrasound fiberscopes, probes, and centers; ultrasound-guided needle puncture systems; cleaning, disinfecting, and sterilization systems; medical treatment peripherals; and ancillary products. This segment also offers endoscopy products for gastroenterological surgery, thoracic surgery, urology, gynecology, orthopedic surgery, neurosurgery, cardiovascular surgery, anesthesiology, and otolaryngology; treatment and surgical equipment; and peripherals, as well as endotherapy products (Company profile 2013). This business unit competes directly with Precision Optics Corporation, Inc. And Vision-Sciences, Inc.
2. Life Science and Industrial. This segment provides bioscience products, such as system and inverted biological microscopes, stereo and confocal laser scanning microscopes, single-molecule fluorescence detection systems, microscope system equipment, and peripherals; industrial microscope systems, including metallurgical and semiconductor inspection microscopes, flat-panel display inspection systems, laser microscopes, measuring microscopes, microscopic 3-D measurement systems, and peripherals; printers; and remote visual inspection products and non-destructive testing products (Company profile 2013). This business unit competes with Sony, Precision Optics Corporation, Inc. And Vision-Sciences, Inc.
3. Imaging. This segment offers digital cameras, lens barrels for digital cameras, optical materials, IC recorders, and binoculars (Company profile 2013). This business unit competes with Sony.
4. Information and Communication. This segment sells mobile terminals, including mobile handsets (Company profile 2013). This business unit competes with Sony.
5. Others. This segment manufactures and sells biomedical materials, as well as conducts system development and other business services (Company profile 2013). This business unit competes with Precision Optics Corporation, Inc.,
What perspective does this provide on Olympus's decision to drop manufacture of its sub $200 dollar cameras?
The only thing wrong with the decision by Olympus to drop manufacture of its sub-$200 cameras was that it took so long to make. After all, the handwriting has been on the wall for all to see for the past decade or more, and companies that continued to manufacture mechanical cameras as the onslaught of digital technology swept the industry found themselves without customers. It has gotten to the point today where digital cameras are being placed in everything that can hold one because of the economics that are involved. For instance, according to Griffey (2012, p. 26), "There is an effect in consumer electronics where, as Moore's Law drives the costs of individual components steadily downward, the cost per unit for said component is suddenly so cheap that device manufacturers can just put them in everything."
It has become increasingly commonplace to see phone users taking pictures with their phones and sharing them with...
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