Analysis Of The Action Camera Industry Into 3 Strategies Groups

The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.

the higher costs that came with making a higher quality camera we increased its price. We based

The short product life cycle in this industry requires competitors to continuously evolve. This continual innovation is difficult for new entrants to achieve. Also, existing products, such as Apple’s iPhone, have built brand loyalty and associated switching costs for consumers, which pose as barriers to entry for new competitors.

We perhaps erred on the product design providing far too many features in the entry-level camera resulting in an increased cost of manufacturing. We did fairly well in terms of global prices but fared badly in P / Q ratings. The average Price for an entry-level camera in the global market is ranging from 150 - 175

With the entry-level cameras, our strategy was to produce them with very minimal cost to ourselves. Furthermore, by having the entry-level cameras relatively low-cost this will potentially lead to mass production, which was our intended goal for these cameras. These cameras were envisioned where any average customer could purchase it comfortably to use on a daily basis. With that being said, we figured that many other companies would attempt to tackle the same price adjustment strategy that we were operating with. We reckoned that many companies were attempting to raise their prices for entry-level cameras, having said that we altered by maintaining a fairly lower price to raise profits. Unfortunately, we realize that this isn’t working out for our company, and decided to modify the prices, however we preformed this adjustment a bit to late for any major outcomes.

At 70% market share, Kodak enjoys unrivalled brand awareness. Moreover, its research showed that 50% of film buyers were Kodak-loyal and an additional 40% relied heavily on Kodak.

By charging a high price for a high quality product and keeping all unrelated costs low, such as administrative costs, labor, depreciation, we were able to triumph all other competitors at large profit margins with large market share in entry level and the best multi featured camera.

We aimed to win market share by appealing to cost-conscious or price-sensitive customers, which we felt that the majority of consumers consisted of. This would be achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, it was evident that we had to be able to operate at a lower cost than our rivals. We aimed to achieve this goal though a combination of two methods, the first being achieving a high asset turnover. In the manufacturing of our cameras, we wanted to achieve the production of high volumes of output. In theory this approach meant fixed costs would be spread over a larger number of units of the product or service, resulting in a lower unit cost. We hoped to take advantage of economies of scale and experience curve effects[3]. We hoped and realised that higher levels of output both required and resulted in a higher market share, and created an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match our low costs and prices.

• Learning curve has to be steep, i.e. Cost reduction has to be fast with change in technology

The film industry has always been somewhat of a dichotomy. Grounded firmly in both the worlds of art and business the balance of artistic expression and commercialization has been an issue throughout the history of filmmaking. The distinction of these two differing goals and the fact that neither has truly won out over the other in the span of the industry's existence, demonstrates a lot of information about the nature of capitalism.

In 2002, Leitax had suffered through poor planning of 3 camera models: the launch of one camera delayed (cost: $19.5 million), another outsold its inventory (costs: $4.5million) and a third model reported sluggish sales ($2.5million). To compensate, Leitax extended the life of an existing model and made a mad scramble to find product and customers but the most costumers preferred to wait for the delayed camera. These

Technology-related industries are creating products that are more innovative, easy to use and attractive to facilitate the preservation of personal moments. A new model, a new philosophy and a new approach; GoPro extends their current portfolio to five models as part of the attempt to dominate the market of cameras.

Through the years, Canon has demonstrated several core competencies that have enabled them to propel themselves to the top of the market. First and foremost, Canon has employed a pool of extremely talented engineers who made up Canon’s Research and Development team. Through their research, Canon was able to uncover new and innovative products. This varied product line, which included cameras, calculators, and photocopiers, demonstrates Canon’s diversified product line. This diverse line of merchandise is integral to the company’s survival and has enabled Canon to take a multifaceted approach to technological competition. The more diverse type of products that are offered, the more chances there are

Take a look at Canon, its strategies over the years have been very effective in balancing growth of market share and profit in the imaging industry which made Canon a leader in the imaging industry group. Other than the imaging industry, Canon also took a piece of pie in business machines (printer, photocopier) markets and industry machines (semiconductor production equipment, medical equipments…etc) markets (see Picture 2.1). Canon has since late 1960s been focusing on strategic planning process, gradually expanded its business into business machines market and adopting a corporate level strategy of horizontal diversification based on its core competencies. Such continuous development and adoption of various strategies keeps

Buyers in this market are not very weak and powerful. They are few in numbers and can switch to other manufacturers for product quality but number of manufacturers is few and backward integration also seems impossible.