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Case Study Focuses on Camera Company

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Submitted By viswatheja
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Case study focuses on Camera Company, SMaL Camera Technologies, and its decisions on what to do so that they can get higher margins of profits. SMaL Camera Technologies general manager Maurizio Arienzo trying to decide which market areas should be targeted. The company has developed a revolutionary imaging technology that powered small digital cameras and camcorders. Its first generation product powers the credit card size consumer cameras was a success. Now, Arienzo had to decide whether to focus on the reflection of new competitors in the consumer space, stepping up efforts to crack the security and surveillance market, trying to get in the car market, the development of mobile phone camera, or make a “left turn.” SMaL Company came up with credit-size camera. SMaL’s ultra pocket camera was recorded in Guinness world. Autobrite technology allowed higher quality pictures in brightly lit conditions
The first generation had been a commercial success for the company. There was a potential market for that. Small and Startup Company so faced challenges. SMaL should make a decision for the future. SMaL had copycats who enter the market but with different technologies or different specifications or even higher specifications. Pixim with combining CMOS and CCD. Foveon had X3 high quality image. Casio Exilim Company in 2003 in size of back pocket with 300$. The company had camera with more bargain qualities than their competitors.
Unique benefits of Camera are light weigh -0.2ounces- long battery life (500 to 1000images). Worked with different light condition, Leadership in using CMOS, with Fujifilm AXIA, Logitech and Oregon Scientific. In August 2001, they illustrated Ultra-WideW3000 with high resolution and capable to capture moving images. The company also had pretty good recognition worldwide and they even received few awards. Credit card size with thin Battery Camera Recorded in Guinness world in 2002. Sold more than a half million kits, Revenue reached to 10 million. SMaL had healthy mix of revenue between its three original target markets. Hit Japanese market in April 2002 and the US market in June 2002.
The company started with small investment and small organization that was right way of starting a company as per the author. CMOS technology for developing cameras was an excellent choice when the competitor companies were still using CCD technology. CMOS was a new technology. It was cheap, no bulky, low consumption of power when compared to other digital cameras. But the company had setbacks regarding few specific areas. Low resolution of 0.3MP when compared to competitors: 1-3 MP. No feedback from customers so there was no direct way of assessing the quality of the product. The kit was totally packed the OEM’S had no chance of altering the product which was difficult to market and sell in some markets. There were some companies which uses both CCD (high quality) and CMOS which was cheap. The companies were Pixim, Foveon, and Casio. The company also had limited of Resource, investment, money and capital. Lack of expert marketing and strategic team. Remove ultimate customer was their wish to eradicate completely. Did not focus on upgrading new camera with new demand and technology.

The author of the case study have presented us with 5 options or choices. They are 1. Moving on up 2. Step up security and surveillance efforts 3. Speed up the automotive efforts 4. Cameras in phones 5. Making a left turn

In consideration of all choices option 3 looks like a safe bet due to the following reasons which I am considering * Size and battery life of technology is a great fit for phones * Proven in Japan that there is a huge demand * Many interested customers * Mass product * Multiple supplier * High volume production * High revenue and income * Invest for new product and prototype * Organization is very bureaucracy and attitude is formal * Organization, superiors and staffs are luxury-oriented * Many competitors There are few disadvantages to this choice or option 3 * Many competitors developing in the market * Existing component kit not good enough, new development would be required
But apart from these disadvantages option 3 is a safe choice compared to all other options. Developing a camera for mobile phone is crucial because the mobile phones market is an emerging market. As per the predictions 140 million people will be using mobile phones with camera. As of now there are around 5 million people who are using mobile phones with camera. If they have proper funding and the funding used to allocate resources and human employment will help to develop the camera for mobile phones. In order for the product to be commercially successful the camera should have more advanced features. A separate team should be allocated to develop a series of cameras and make them substantial to support mobile phone but without compromising their main advantages like low power dissipation and slim body design. They should develop a mobile phone camera which should have widely panoramic images commercializing the high technology. The company need to flexible to adapt the new system. The company should be convinced that product had a compelling value proposition. They should be able assess the employees by improving their quality and quantity also. They should pick up their manufacturing process so that they can finish in short time frame. They should also enhance their camera technology for mobile phones to make them satisfactory for their own market so that they can be pioneers of that market. Many mobile phone companies are looking for camera vendors and if SMaL can be successful in implementing all the steps above and also some other relevant improvements then they can create huge profits for themselves. For eg Nokia is a mobile manufacturer is looking for camera vendors if SMaL is successful with their new mobile phone cameras then there could be a partnership which could bring heavy revenues to both the companies.
And in conclusion the better choice for SMaL technologies to enter camera phone market because there is no limitation like security and surveillance system or looking for a new area of products will take both time and resources which are not good for the company. As far as an automotive field and digital camera field are filled with copycats or competitors which will be hard to achieve as the market is changing every day before the company advance through all the competition. So again it will be a bad investment of both resources and time if it were to enter those fields.

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