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 ...view middle of the document...
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...