Hogan on Olympus financials

Started Feb 16, 2013 | Discussions thread
Rick Baumhauer
Regular MemberPosts: 333
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Re: Hogan on Olympus financials
In reply to rrr_hhh, Feb 17, 2013

rrr_hhh wrote:

Rick Baumhauer wrote:

Thomas Kachadurian wrote:

Rick Baumhauer wrote:

How to fix an entire industry that is losing money? Quite a trick.

Not really. If they stopped being more concerned about 14 year-old girls inJapan and made cameras for photographers in rest of the world they could make plenty of money.

They are counting on making money on fashions and upgrades rather than listening to what people want. In the dpr interview with Panasonic the execs sounded surprised and still getting used to facts about the business that we all knew 3 years ago.

Olympus just insisted they are still going to make dslrs, when they haven't been a significant player, ever.

Look at the ridiculous EOS M.

Hubris is a powerful sauce and the Japanese camera business is swimming in it

Tom

www.kachadurian.com
Call me crazy. I happen to like photos of cats.

But is that something that is possible in these companies? They are so fundamentally Japanese in outlook - the home market is always the first thought, and they have somehow never gotten the message from the Japanese automakers that it is necessary to tailor products specifically for North America, for Europe, etc.

Yes of course and that is why Japanese cars are the first and bigger sellers of cars in the world !

But will the camera companies ever learn the lesson from the automakers? They seem very resistant to the idea so far, and continue to ship the same cameras that do well in the home market all over the world expecting them to do well, to poor results.

It seems that the best hope for profitability is to pare way back on models and essentially abandon the low end, but none of them seem to have the guts to bow out of any part of the market. It's like the entire industry is angling to eventually be bailed out by the Japanese government (something it has shown the willingness to do in the past, especially in key industries that are a point of national pride).

Low end most of the time is where you make mass sales and where the profit is. If that market disappear, you have to shrink, but this isn't an easy thing to do. It hurt people. Why do you think that Obama gave money to Ford ?

Historically, the low end has been where the mass sales and profit are, but in the current environment (in which phone cameras are good enough for many), there is very little money to be made there, certainly not enough to keep a company alive.

Actually, Ford was the only US automaker that didn't get bailed out, but point taken on keeping people employed. This was why I mentioned in an earlier post that, without the unprofitable P&S models, many of the camera companies would find it difficult to justify having a camera business at all, since it would leave their camera divisions so small as to be inconsequential.

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rrr_hhh

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