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Case
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Reference no. 306-290-1
Published by:
IBS Research Center (2006)
Length:
14 pages
Data source:
Published sources

Abstract

Tokyo based Olympus was the world''s fourth best selling digital camera manufacturer after Canon Inc, Sony Corporation and Eastman Kodak. Olympus also manufactured medical endoscopes and dominated the medical industry with a market share of 70%. The digital camera business suffered from steep price falls, slow industry growth and the increasing popularity of camera phones. In March 2005, Olympus suffered a net loss of 11.8 billion yen compared to a net income of 33.6 billion yen in 2004, largely due to the poor performance of the digital camera segment of the imaging business. Olympus faced various challenges to grab a market share, make profits and to innovate the product in a statutory market for its sustenance. Apart from cheap cameras from China, camera phones added more woes to Olympus. Despite having a long history of operating in the camera industry, Olympus wasn''t able to sustain the industry and rival pressure. Experts opined that Olympus should engage in contract manufacturing (to China), strengthen its research and development rigorously or let down its business and concentrate on medical endoscopes.

Topics

Olympus Inc; Digital photography; Takachiho Seisakushoin; Olympus Corporation; Olympus Imaging; Digital cameras; Canon; Sony; Eastman Kodak; Digital SLR (single lens reflex) cameras; Camera phones
Location:
Size:
Net sales, JPY813 billion (2005)
Other setting(s):
1919-2005

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