Canon and Nikon dominate the photo world, but I don't understand why.

Started Oct 31, 2013 | Discussions thread
Aberaeron
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Economy of scale and low production costs
In reply to jidery, Oct 31, 2013

mean that Canon and Nikon can sell competitively while providing their dealers with the high margin incentive to push the product. Both these companies have long reached a critical mass in sales terms where making a new sale and retaining existing customers is relatively easy, so the financial margins are relatively easy to maintain at dealer and distributor level for most of their product range.

Existing customers are asked for advice by newbies and they tend to advise to buy the same brand that they themselves use, even if they have little, if any, experience with other brands.

This is a fantastic situation for any brand to be in. The only problem is that to maintain that leadership position means that they are under a lot of pressure. All the while the others, who perhaps cannot produce goods at comparable low costs have the incentive to innovate at a faster pace and push, push, push.

In the wise words of Van Morrison "You're only King for a day".

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