The Digital Camera Industry (Comparison of Canon and Sumsung)

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.

high end camera to capture life’s simple moments, but consumers would still appreciate a high

The figure obviously had not return to pre-crisis level. Moreover, recent commodity prices had fallen significantly which will affect Australia’s short and long term economy.

The Mission of the company is to produce world-class cameras marketed all over the world, produced at most optimum cost using best manufacturing practices, giving value for money to its customers and maximizing yield for its investors.

Kodak is known for providing the quality services, innovative products offering the best quality to customers. It developed competitive advantages and satisfied its customers during many years. Kodak has evolved different strategies in the field of traditional photography where it brought innovations and modification. Kodak has a successful history in the industry. According to the case study, the main reason behind the success of Kodak in the industry is its quality.

(Bellis, 2009) Nevertheless, the main selling point of digital cameras was the convenient way that they could be stored. Every exposure is almost instantly saved to a removable disk drive, which remarkably expired the use of darkroom processing. It was convenient, less time was needed to produce an image, making it particularly appealing to journalism. The photograph has since then become an instant process. Combined with the invention of the Internet, and booming industry of personal computers, the newer technology would expire its predecessor. There are billions of photographs on the Internet, comprising the largest most diverse photo collection ever assembled. We have access to imagery from all over the world, using key words and hash tags to catalogue imagery and content; we can see what is happening without being there. The introduction of digital photography has enabled photographers to record terabits of imagery which can be stored in minute places, meaning the coverage that we have of the modern world is greater than ever. Unlike the formats that Henri Cartier-Bresson used, where each roll of film, or negative slide needed storing in a large physical place, under controlled conditions, an archive of objects. Automation came with digital photography, its combination of digital components allowed the camera to automatically detect light qualities, and

According to the consumer feedback survey conducted by Nikon in 2011, the consumers considered Nikon digital camera as user-friendly, affordable price, well performance and good quality. The significant signal to explain this stage can be affordable price and good quality of the product.

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.

Nowadays, cameras are popular among the young generation. Moreover, government emphasises on the growth of private sector, which enhances Jessops’s competition. A recent industry research report from IBISWorld argues that the expansion of advertising and fashion markets will stimulate domestic demand for photography services in the next five years (PRWEB, 2011). These provide opportunities for Jessops to expand its market share.

There is a mobility barrier between High Price and High Quality and Medium Price and Medium Quality strategy groups. The mobility barrier is fairly low in the action camera industry since it does not require huge initial capital investment or economic of scale to be profitable, which illustrates that it is relatively easy for

While Eastman Kodak has remained an industry leader in the sales of film for photo-imaging, over the past five years Kodak has underestimated the demand for digital cameras. Digital cameras require no film whatsoever and with Kodak’s main line of production being film Kodak has suffered great losses in net profit. Just in 2004 Camera film sales have been falling even than projected. The Photo Marketing Association predicted a six percent drop in film sales and Kodak projected an even more dismal 10-12 percent drop in film sales. The actual drop in sales reached an unforeseen 18%. In 2003 digital camera sales were greater than traditional film camera sales for the first time.

Digital camera market has enjoyed tremendous growth since it was introduced in the photographic industry. Starting in 1998, price has been falling rapidly. In addition, the development of CMOS allowed digital camera to not only capture professional market, but also enter consumer market. It was estimated that in 2006 forecast would peak with 63% penetration rate for digital cameras in the US. After 2006, the growth rate was expected to fall negative.

While Kodak has historically been a well-established brand name in the marketplace, it struggled to find a niche when the industry morphed from a film-based market to a digital-based market. Kodak has struggled to successfully evolve its film-based business structure to the new structure of digital-based technology, which has allowed for competitors to enter the market, decreasing Kodak’s market share. Competitors (such as Canon Inc., Fuji Photo Film Co., Hewlett Packard Co., Nikon, and Sony Corp.) have posed major threats to Kodak’s livelihood. Kodak faces a 5% drop in film sales (2001-2003) and a 3% reduction in overall revenues over the same time period. In addition, revenues and net income are expected to be fairly flat (or decrease) in future estimates. Kodak faces much pressure to revitalize their business through digital imaging, a radical innovation, or risk being eaten alive in an industry they thought they controlled.

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

This report is focusing on the strategies adopted by Canon and the strategies when Canon is facing competitions. This report shows that how Canon survives in the market and keeps its long lasting growth in market and profit.