Mixed Fortunes for Camera Giants
As the credit crunch begins to have massive global effects, the big camera giants are going back to the drawing board in order to manage if not stem the effects of the downturn. Some in view of their dwindling quarter income have come up with near radical measures to salvage their stake in the industry. A closer look at the latest financial reports however, reveals a case of mixed fortunes for the camera giants.
Latest figuresIn their report for the end of fourth quarter 2008, Kodak reported a loss of $137 and also was the drop of digital sales by 23% to $1.78bilion. This worrying report is being attributed to the credit crunch. Another player in the industry giant Canon has also reported a whooping 67.7% fall in their operating profits. Sony which had enjoyed a momentous growth is not left out in this downward trend, even though its gaming brands are reporting an increase in sales. This positive outlook has come about because as people cut on outing spending habits, they are choosing to spend more time at home playing games.
Global appealDuring this financial downturn, the companies that will survive albeit with long term scars are those that have over the period built global appeal. For example, Sony has built a brand name that is valued across the globe as compared to Kodak that has appeal mostly in
Way forwardAs the executives are crunching the sales figures hoping the recession does not stay long, there have to be immediate strategies to help maintain the current sales levels and to re-ignite consumer interests in the products. This means that like no other time before, the consumer is the WINNER and whatever products or strategies that are put in place must by all means appeal to them. This will mean products that are affordable but still of cutting edge technology. This has is evident in the recent sales figures where digital cameras with between 6-8 million pixels falling by more than 10% when compared to those with 10 million and more pixels. The companies that will make it through the recession are those that will offer more compact DLSR cameras and price them aggressively. Owen www.caredeals.co.uk