Olympus Case Essay

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Recommendations Olympus Optical Company has come a long way in regards to reducing cost and recapturing market share but they are continuing to face problems. In addition to cost issues Olympus is also facing flexibility issues, such as shorter product life cycles and an increasing number of products needed to satisfy customers. To address these problems we recommend Olympus implement a concurrent engineering program, a modular production strategy, and reconsider the functional group management approach. The concurrent engineering program will reduce product development time and reduce cost. Modular production will increase customer satisfaction by allowing customers to customize cameras with the features they desire. Continuing with…show more content…
Concurrent engineering will drastically reduce the amount of time required to develop new products, allowing Olympus to introduce products to market at a much faster rate. This will result in increased market share, either by reducing lost sales to competitors or by capturing more sales from competitors on new products. Product modularity would increase the flexibility of the company’s production processes by allowing for more product customization. Olympus can continue to offer models that are available for same-day purchase, but it can also gain market share by offering fully customizable products that customers can order through retail stores, similar to a computer. This way, the customer can get every feature he/she desires without having to pay for unwanted features. Introduction of such an innovative product offering strategy could capture market share from competitors. Implementing the functional group approach will create multiple problems in the process that will ultimately decrease the process flexibility. Measuring the production process as 10 individual companies creates conflicts of interest and longer lines of communication. The pressure to reduce costs might result in one process step cutting corners or ignoring an important issue in the interest of costs. This would create complications
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