Olympus Case Essay

306 Words2 Pages
Introduction The Olympus Optical Company, Ltd. Was founded in 1919 by Takachnibo Seisakusho. Olympus product line include cameras, video camcorders, microscopes, endoscopes, and clinical analyzers. Olympus divisions: Divisions responsible for revenues were consumer products, scientific equipment, endoscopes, and diagnostic. The 35mm camera market * Competitors : Asahi Pentax, Canon, Minolta, Nikon. Canon and Minolta largest competitors with 17% market share, Olympus 10%. * 2 major types of cameras – 1. Single lens reflex (SLR); 2. Lens shutters (LS) or compact cameras. * Low end amateur 35 mm cameras were divided into 2 segments; 1. Very inexpensive cameras produces primarily by film manufactures; 2. 35mm cameras that were less expensive than SLR cameras( dramatic change in 1980 introduction of compact cameras) Strategic change at olypmus 1. Recapturing market share 2. Improving product Quality 3. Reducing Production cost Recapturing market share * Differentiate its product by innovative use of technology – develop a full line of low cost cameras with particular emphasis on zoom lens model. * * Introducing NEW PRODUCT ON NEW MARKET --- very high risk!!!! * Competitive advantage – developed electronic shutter unit that combines auto focused control and the lens system, which allowed size of the camera to be smaller * Changes on the market: - Treats 1. Foreign exchange rate; 2. How cameras were sold( distribution channels – products sold through discount houses and mass merchandisers – lower profit margins. 3. The role of other consumer products- customer were trying to choose between a compact disc player or a compact camera. – Olympus viewed compact disc player as a competitive product - ??????? Why??? It’s a totally different product????? Market research: * Quantitative information about 35 mm

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