The Digital Camera Industry (Comparison of Canon and Sumsung)
3760 Words16 Pages
I. Executive Summary
The purpose of this report is to develop an understanding of how the digital camera industry operates in today’s society as well as several factors, which influence consumer behaviour in the buying process. This report uses Canon Inc as an illustration along with the discussion of each topic.
Firstly, this report will discuss the background and size of the digital camera industry. The digital camera industry is getting bigger with the technological advancements in society today. Marketers thus need to be aware of the needs of consumers in order to cater to specific target groups as also gain a competitive advantage. The company’s competitors and external environment are discussed for a deeper understanding of the…show more content… In order to operate the firm efficiently with appropriate strategies, Canon must understand the rules and regulations of each country where their retail shops operate. As rules and regulations are different in each country, this understanding will help Canon to adapt their strategies in different markets. 2.2.2 Economic
Economic issues concern inflation, unemployment rate and economic growth. There are two major economic concerns; changes in income and changes in consumer spending patterns. Since economic forces can be used to forecast future sales and determine the strategies which may be used during specific economic situations. According to the Australian Bureau of Statistics (ABS), GDP rose 0.9% seasonally adjusted (March 2007-June 2007) and final consumption expenditure rose 0.5 % seasonally adjusted (March 2007-June 2007). This may be because the country’s economy is stable. During this time, the company is expected to produce more in order to meet consumer demand. For Canon, the increase in GDP seems to affect their products in the market. However, only GDP may not be sufficient to forecast the market, and thus, marketers also need to look at other factors as well such as CPI, the country’s population and changes in customer value.
According to Suchard and Polonski (1991), the socially conscious customers feel strongly that whatever they do, they will consider the social