Camera Industry Analysis: Trends and Strategies

1. Introduction

The industrial analysis is helpful for the organisations to have clear and concise ideas about the market structure and the market trend, where the multinational corporation can evaluate the threats and upcoming opportunities in the market and structure the organisational policies and practice further in order to secure future sustainable development. The study focuses on the analysis of the Camera Industry, where it would be possible to evaluate the market condition and the rules and resources available in the market and it further helps the firms to restructure their policies and practice for running the business strategically. In the recent era of globalisation, with the growing popularity of the social networking and the trend of sharing images, there is successful growth of the digital camera industry across the globe (Kang and Song, 2017). The services as well as the applications such as taking pictures, portrays, portfolios, as well as Photoshop are increasing the demand for the digital cameras and thus it is interesting to analyse the market of camera industry. In the recent years, there is the trend of digital camera photography, where the people are interested in Photoshop and clicking pictures as their hobbies. The market in North America and Europe is growing at a rapid rate with the camera and there is high demand of the people which raise interest of the investors in investing on camera industry (Moehrle and Caferoglu, 2019). On the other hand, in the countries like India and Brazil, there is low market penetration with lack of availability of the variety of products and services in the camera industry and it further boosts the interest of the investors to invest in the camera industry for market expansion and restringing the long term buyers across the international markets. However, due to invention of the high tech and high resolution Smartphone in the market, the customers prefer to have readily accessible mobile device for capturing the pictures and it has adverse impacts on the camera industry (Rikkiev and Mäkinen, 2016). In North America the digital camera shipments are expected to reach 37488.2 thousands units in 2020 growing a CAGR of 6.1% from 2013 to 2020. Hence, North America is the leading market in the recent past era, where Asia Pacific is expected to largest market during the forecast period and thus the industry is interesting and should be analysed efficient for identifying the resources and existing market structure. The camera industry reached at its maturity period in the Europe and North America specially, USA, Germany, France and UK. However, the buyer’s demand is declining over the recent past years which may further hamper the income growth of the industry (Kwon et al., 2016). Due to product penetration, additional services such as changing lenses, superior quality pictures and DSLRs characteristics further boost the demand of the customers but in the recent years it is decreasing due to availability of other devices. Hence, the entrepreneurs in the camera industry and the companies mainly target the photographers in the recent era of globalisation to make them satisfied with high quality digital cameras and continuous to run their companies with adequate sales volume and profitability (Kaewthong et al., 2017).

1.1 What is Sustainability

Sustainability is the ability of the firms to stay in the market constantly by fulfilling its commitment towards the pillars which are society, economy and environment. For managing sustainability, the organisation should contribute positively in the economy by making effective percentage of profitability and contributing in enhancing the country’s GDP and National income (Hasegawa et al., 2018). On the other hand, it is also the responsibility of the firms to invest in the social developmental projects, including education and charity to create values for the social communities and apart from that, environmental sustainably is the main concern in the recent business era, where the corporate firms try to manage sustainability through providing green environmental footprint. The camera industry in the recent era of globalisation is also concerned to be sustainable in the market by acting responsibly where the camera companies can manage their sustainable business solutions and provide green environmental footprint for the benefits of the human being in long run. The global companies in the camera industry such as Nikon, Sony, Canon, and Fujifilm, etc. are also concerned to secure future sustainable development by maximising values for all the stakeholders, engaged with the business (Zhang, Lei and Dai, 2018).

2. Camera Industry Analysis

2.1 Camera Industry - Environmental Analysis

Political stability of the biggest market as well as increasing government support for the data security and for the online business activities are the major opportunities in the camera industry, where the government is supportive towards the organisations to make the business sustainable. As per the market condition and the economic factors, there is high growth of the developing markets as well as emerging economies which is also considered as the market opportunity for the camera companies.

Current

The rules and legislations as well as government cooperation affect the camera industry positively The camera companies follow the patent and copyrights to run their daily business and maintain authenticity of the business activities. Increasing disposable income and purchasing power parity as well as the economic stability of the developed nations such as Europe and USA, are also providing the chance to the camera manufacturing companies to set up their business globally (Li et al., 2019). The government also encourages more research and development activities as well as helps to develop technological infrastructure for boosting the performance in the camera industry.

Near Term

It also affect the near term business, where in short and medium term, the companies are able to manage their operations sustainably. The legal structure towards protection of the data and privacy of the consumers are also executed properly and it further provides a scope to the organisations to manage the business activities ethically (Walia, 2019). Moreover, The Freedom of Information Act (FOI) helps to access the adequate information of the public and for restricting to share the information, there is The Protection of Freedoms Act (POFA) which regulates the data would be further safeguarded properly. On the other hand, the General Data Protection Act 2018 is also applicable in the camera industry to reshape the activities the camera companies and protect the personal information and data of the customers. The Human Rights Act (HRA) also enhances the right to privacy where the photos and other information are kept safely (Ślusarczyk, 2019).

Long Term

The above mentioned rules and regulations are also beneficial of the camera industry in long run. The companies operating in this industry are capable of securing future sustainable development and maintain business ethics for successful establishment of the brand. Increasing dependency on the digital technology and high rate of research and development activities also help to provide effective products with high tech applications in the digital cameras. The legal factors are effective to reshape the rules and legislations in the camera industry and the legislations such as improving patent protection, regulations on e-waste and product regulations are mandatory to be executed in the companies (Ye et al., 2016).

2.2 Camera Industry - Resource Analysis

Resource analysis is important for the camera industry to have clear understanding about valuable resources and infrastructure to manage the operational activities in this industry. Environmental resources like ink, carbon and aluminium used to make body parts are required and it is also necessary for the firm to manage the resources efficiently and protect the natural resources in long run (Hsu et al., 2018). The camera industry is capable of managing waste and protects the resources for producing the camera units, where cost leadership strategy and the high economies of scale are beneficial for the industry to make the operations sustainable.

Current

The above mentioned resource analysis is effective for the camera industry where the companies are capable of managing their producing and manufacturing activities. It has short term impacts on the camera industry where the companies are efficient to arrange and purchase the raw martial and make the production successfully (Jeong, and LG Innotek Co Ltd, 2016). Infrastructure of the company must be developed well as well as technological innovation is also mandatory, where the companies in the recent years try to focus on automation software, technology-supported customer service, product design research and data analytics to make the product and services excellent (Struzikiewicz, 2016). These are also considered adequate resources for running the operations of the camera industry.

Near Term

It has also medium term impacts on the camera industry, where the companies are able to manage their economies of scale and ensure the organisational operational excellence. In the medium term, they are capable to controlling their cost structure as well as produce at a bulk amount to attract the audiences. Human resource is another major factor to manufacture the quality products in the companies, where the managers and the leaders try to maintain strong employee base who are experts in building the final product. There is technical team and engineers who can design the products efficiently and improve technological innovation and create new design to provide unique products to the customers (Munoz-Ornelas et al., 2016).

Long Term

The resources and capabilities of the organisations in the camera industry are also affecting the companies positively, where the camera companies can develop the technological infrastructure for manufacturing high tech products for the customers. In addition to this, the companies are also able to manage enhance product innovation and creativity to serve the customers with unique products and efficient services that would be beneficial for satisfying the customers in long run. The companies also can secure future sustainable development by acting responsibly where the activities such as using renewable resource, waste management and protecting natural resources are effective for the brands in camera industry to make the business sustainable and environment friendly. On the other hand, secured access of the resources is there, where the companies are able to access ink, carbon and aluminium for manufacturing the quality cameras. Additionally, procurement management plays a crucial role in developing the products efficiently, where the companies are capable of purchasing the equipments, raw martial, machinery for producing the ultimate products (Kang and Song, 2017).

2.3 Camera Industry - Key Success factor

The key success factors of the camera industry are such as,

Technological capabilities and enhancing the design and high tech products characteristics Reputation for producing high quality optical devices such as binoculars, microscope, and cameras including high end DSLRs Strong distribution network with large electronics chains and local camera retailers Involvement with the multiple segments of the industry value chain includes the camera production and sales, printing supplies, professional photo processing Rapid design to market cycle times Strong employee base and the exertions of the staff and technical tam

The above mentioned key success factors are effective for the organisations in the camera industry and these have positive impacts on the camera companies in short, medium and long run.

Current

The success factors such as strong reputation and involvement with local camera retailer are effective for the companies where they have the opportunity to distribute the products through the local retailers and it further helps to maximise sales volume of the organisations.

Near Term:

In the medium term, the success factors such as strong technological infrastructure and supply chain network are effective where the companies can establish their business in the market.

Long Term:

In long run, the success factors such as high tech products and the research and development for design creative products are effective, where the companies can develop their products and improve innovation in serving the customers with new features and product characterises. This further helps the organisations in long run to strengthen their competitive position in the market and secure future sustainable development.

2.4 Camera Industry - Vision

Optimistic rapid transition:

Optimistic rapid transition is effective for the camera industry to show innovation and creativity in manufacturing the high tech products. The companies operating in the global camera industry such as Nikon, Sony, Canon, and Fujifilm are focusing on rapid transition for technological innovation and creativity. The organisations are able to transform the phase towards high tech products and utilise the technical innovation for serving the customers with creative products. This has positive impacts on the camera companies where the companies can secure future sustainable development.

Pessimistic slow transition:

Pessimistic slow transition affects the business of camera companies negatively, where the entrepreneurs as well as poor employee base fail to adopt new technology for design high tech products. This further slow down the growth and organisational development, where lack of research and development as well as poor technical infrastructure lead the people towards pessimistic slow transition and it further deteriorate the brand performance in such an intense competitive camera industry.

z2.5 Camera Industry -Implications

The camera is efficient to make the business sustainable for long run, where the camera companies follow the government rules and regulation to run their business efficiently. Though there is decease in the demand for the innovative cameras in the recent era, due to introduction of high tech mobile and smart phones application for Photoshop and editing photos, there are famous organisations in the industry that are able to develop creative and newly designed products. The companies such as Nikon, Sony, Canon, and Fujifilm are efficient to serve their customers with high tech products and efficient services for satisfying them in long run.

3. Firm Analysis – Wex Photo Video

3.1 Introduction

Wex Photo Video has been established in the year of 1997 and has been serving efficiently over 800,000 photographers and videographers to achieve their photography goals. The company provides the quality products and excellent services at competitive prices and it is known as the largest photo and video retailer in the UK. Wex Photo Video offers over a range of 20,000 products which the customers can choose from according to their needs and preferences. The company website is developed by a specialist customer contact team, who has expertise in the field and the company also has physical stores across the nation UK along with extensive online content to offer. The organisation can be contacted by the customers by phone, e-mail, live chat, social media, or in person seven days a week. These are also additional ways to develop strong corporate relationship with the customers where they can interact with the organisational representatives for making effective purchase decision for the quality products of Wex as well as access excellent customer services, both technical and non-technical. The organisation is hereby efficient to gain competitive advantage in the camera industry where Wex is successful to establish the business in the UK and gain high competitive advantage by strengthening their customer’s base. The product quality, newly design and diversification of the products with high tech characteristics are effective for Wex to attract more consumers and retain them for long run to maximise organisational profitability and sales volume which further helps the firm to run sustainably and secure future development (Wex Photo Video, 2020).

3.2 Reputation with stakeholders

Stakeholder analysis is important for understanding the ways of the company Wex to manage the stakeholders including the employees, customers, government, social communities as well as managers and distributors. The company’s leadership style and managerial practice are beneficial to develop suitable organisational culture where the employees are managed well. As per the stakeholder’s analysis, the leader of Wex provides support and direction to all the stakeholders and aim to improve engagement with them in long run. Continuous support and motivation are there which further helps the management team to maintain the stakeholder’s relationship and improve trust and loyalty in long run.

Current

The above mentioned stakeholders management strategy is effective for the business in short run to retain the shareholders and employees and make the daily activities of the business successful.

For developing strong cooperate relationship, the leader at Wex tries to enhance communication and collaboration with all the stakeholders and this further provides a scope to the firm to manage the stakeholder and retain them for long run.

The organisation tries to maintain corporate binding with all the stakeholders and maximise the values for them by providing high return on investment. This further secures the future sustainable development.

These are the ways through which, the company is successful to manage their stakeholders and retain them to secure future sustainable organisational development.

Near Term

The major risks associated with the business are such as lack of management of the stakeholders, poor communication and cooperation as well as lack of sustainable strategy and finance management.

The organisation mainly focuses on recycling the battery of the cameras and other electronic devices at zero cost and this is the main strategy to maintain sustainability of the business.

The firm hereby should focus on the recycling technique, packaging method and eco friendly operations through reduction of greenhouse gas emissions.

These are the major strategies planning which would be possible for the organisation to adopt and invest on more research and development to make the company sustainable in near future as well as create values for the stakeholders.

Long Term:

It also has medium term impacts on the business where the firm Wex is able to strengthen their stakeholder’s base and manage their business activities across the UK where the firm is also successful to serve the customers in a better and unique way.

The long term impacts of the stakeholder’s engagement are there where the company may secure future sustainable development by managing all the stakeholders and protecting the environment through green environmental footprint.

Additionally, the leader at Wex is efficient to manage their employees for enhancing product portfolio and managing the organisational operations across the UK (Papetti et al., 2018).

Through these strategic planning, the organisation Wex can also be able to maximise the values for human being and protect the environment at the same time.

3.3 Strategy

The organisation Wex focuses on developing effective strategic planning in order to sustain in the camera industry and in this regard, the organisation Wex focuses on developing quality products as well as giving efficient services to the customers. The organisation is also capable of gaining high market share by enhancing their sustainable solutions.

Current

The strategic planning is good for the organisation in the short run to promote their quality products and serve the customers innovatively, where the large product portfolio provides a huge options of the customers to choose the right products as per their requirements and budget.

For product category, there are 20000 diversify products, where the consumers can choose the right products according to their requirements and preferences.

Product innovation and creativity in providing services to the customers are also other strategic planning of Wex Photo Video to gain high market share across the UK (Mahmoud, 2019).

On the other hand, the organisation chooses another strategy which is setting competitive price so that the consumers can afford the products and access the efficient services for enjoying the latest cameras and digital activities.

Near Term

For the medium term, the organisation is also able to maximise their profitability, where they are successful to strengthen their customer’s base. The cost leadership strategy as well as product portfolio are helpful for Wex Photo Video to establish the bard successfully. Moreover, the organisation is also efficient to contact with the consumers and give them 24*7 services so that their values can be maximised in long run. There is technical and non-technical support team, who are efficient to serve the customers continuously. The phone, e-mail, lives chat, social media, or in person services are there to support the consumers and serve them with best advice and support. Hereby, the product portfolio and the service efficiency are the major success factors of the organisation Wex Photo Video, where they are able to gain high competitive advantage in the UK camera industry. The products are reliable and in good quality which further attracts the audiences in the country for making effective purchase decision for the products of Wex Photo Video.

Long Term

In long run, the sustainable strategy of the organisation Wex Photo Video such as recycling the battery at zero cost is effective for the organisation to be sustainable in the camera industry and gain high competitive advantage. Additionally, the organisation Wex Photo Video is successful to develop the strong position of the brand and strengthen the supply chain and distribution network and this further helps the organisation to manage procurement and develop quality products for the customers. In addition to this, the organisation focuses on recycling the battery of the products in order to be responsible for the environment and give green environmental footprint. This further protects the natural resources of the earth where the organisation recycles the battery of the old products for developing new one at zero cost this is effective tactic to be sustainable in the market and provide positive environmental impacts on the society. On the other hand, the promotional strategy such as organisational website development, promoting new products through social media advertisement are effective for the Wex Photo Video to establish the brand in the market across the UK.

4. Conclusion

The camera industry is going towards sustainable outcome, where the organisation such as Nikon Sony, Canon, and Fujifilm focus on green environmental footprint. The organisation Wex also needs to invest in eco packaging system by utilising paper packaging and cardboard packaging as well as using the sustainable plastics for being responsible for the social communities. The organisation also requires to use electric cars for reducing greenhouse gas emission and implement solar panel for using renewable energy. These are the major strategy of the organisation to be sustainable in the camera industry of the UK and enhance their performance for ensuring high profitability and sales volume in long run. For example, Nikon as a famous global camera manufacturing brand focuses on green environmental footprint, where they try to reduce green house gas emissions by using electric cars for transaction of raw materials or the final goods. The organisation Nikon also focuses on reusing the battery as well as utilising renewable energy resources such as air energy and solar panel. On the other hand, the organisation Nikon also focuses on using eco friendly packaging system by using paper packaging, cardboard packaging or environmental sustainable plastic. The organisation Wex Photo Video should hereby focus on eco packaging to be sustainable in the market as well as develop further tactics to create values for all the stakeholders (Shewmake, Siegel and Hiatt, 2020).

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