Nikon's 5 year plan...

Started Oct 23, 2013 | Discussions thread
kelvin2345 Regular Member • Posts: 105
Re: Nikon's 5 year plan...

kelvin2345 wrote:

stevo23 wrote:

"If they keep doing what they've been doing" - clearly that is true. But remember that both Canon and Nikon, with their large embedded base, is trying to make smart moves that keeps the customer base intact while also attracting new buyers.

RIM, Nokia and Kodak all had a large embedded base. They all thought they were making "smart moves" to keep the customer base intact - and what happen?

Thanks Kelvin, very stimulating. A few things occur to me though.

Kodak didn't have a large embedded base in cameras. They got out of decent cameras a long time ago and hitched their wagon to film. They were making super cheap cameras when digital came into play. They had to use Nikon to build their first DLSR. And even then, they failed to invest in digital cameras in a serious way. So for me, Kodak isn't a great analogy because they did the typical American, low quality move and wimped out.

RIM - large embedded base, but their technology was flawed from the start. Every message had to route through Waterloo, so perceptions of poor reliability abounded. The two major outages that were enforced by the courts made everyone painfully aware of their vulnerability. Add the cost of maintaining a BES and embedded base actually gets nervous. It didn't matter if they came out with an iPhone killer - never would have mattered. The above two issues killed them a long time ago and it was only a matter of time.

Nokia - not much to say. They became irrelevant a while back. They lost some big contracts because they were inflexible and that guaranteed their marginalization.

There are few analogies that will completely apply to Nikon. With Nikon, (and all the other Japan-based makers) we have a kai zen company who's looking at the long term - 50 year outlook. They're also sitting on a pile of cash and a ton of IP and they need to do something with it soon. But they have a little bit of time to figure out what that next and best move is while watching their competition. They don't have to be first to market with mirrorless etc., just best and before they lose too many customers.

They also want to keep their embedded base embedded. They will lose some, but they're counting on most holding firm. If they lose that embedded base, all bets are off and they're truly at square one. No one wants to be in that position. Sony is unique in this position in that they have little embedded base to lose, so they can almost make any move they want.

So I think it's tricky for Nikon and Canon. Nikon has to be number 1 or number 2 because cameras are their cash cow. Canon not as much.

It's always easier to look at things retrospectively and point out what went wrong after the drama. If Nikon really fails in 5 years time, we will all be saying we can predict that because of things like:

QC problems and not understand user needs.

Heavy reliance on Sony technology

Late to the social media party

Software not designed with connectivity in mind

And the list goes on...

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