Leica Camera Company Case Solution
Analysis of Case Study
The company mentioned in this case study is facing numerous corporate level threats while running its business. Leica Camera Company traditionally produces and sell cameras that are analogue and film based. Emerging new technologies in the camera market are one of the biggest threat to Leica’s Camera Company. The company also faces threats from its competitors. The company must recuperate itself if they want to remain profitable. As the digital camera production is taking over the market, Leica’s Camera Company needs to adopt and accept the technological shift in the industry.
Should Leica resurrect and reinvest in the R series? Why or Why not?
The company’s R series was a quality product. Its precision made it loved by professional photographers. R series was the company’s most loved but also old-fashioned or outdated product. Leica deciding to leave the R series behind was a smart idea. The series was comprised of analogue SLR cameras and a collection of R lenses that were expensive.
The company was the creator of the finest lenses. With the choice of using a mixture of optical glass that was roughly over 100 different types. The average lens was made up of about 100 separate fragments. Specially trained technicians would test machine and handmade lenses about 60 times throughout their production process. This efficient quality control made Leica’s lenses irreplaceable. No competitor could have ever gotten near to achieve the same level of precision these lenses provided. 30 process during production were done by the hands of skilled workers. Skilled craftsmanship resulted in highly precised optical lenses. Each lens was marked with a unique id or serial number by the company. Lenses were also marked with the tag of mad in Germany.
This product was loved by Leica’s customers and was the best-selling item since its introduction in 1976. The camera industry was moving forward and new digital cameras were being introduced. In order for Leica to still earn a profit or still be a part of this industry, they needed to take this decision of abandoning their beloved R series. The owner of Leica Camera Company Mr Andres Kaufman faced a difficult decision of letting go of their most loved product the R series. R-series was expensive and Leica was a small business. When the company was in loss and the customers were moving on wards new camera technology i.e. the digital cameras, Mr Kaufman thought that investing huge resources on this expensive outdated series would be a huge compromise.
Many people oppose the idea of leaving R series behind, a portion of conservatives-fought the company’s move mainly for aesthetic reasons. Despite the uproar from the company’s and product’s supporters, Leica did not re-invest in the series any further. In its place,the company designed and created interconnect an adapter that allowed people to connect the R series lenses on M 240 digital camera. But for customers, they were not impressed and the adapter did receive as much appreciation and love as the initial product did.
The company should not reinvest in the R series products. People did oppose to the idea of abandoning R series and moving forward. This old series can be bought now a days for an expensive amount, but since the camera and lenses industry has moved forward and new products are emerging on the daily basis bringing back this past series will not excite the customers as it did before. If the company did decide to bring this product back it does not guarantee that the quality and precision R series provided back in 1976 will be the same. If the quality of the product is compromised people will be disappointed and this might ruin the reputation Leica’s company have established over the years. Designing an adapter for R series was not much loved by the product users proves that if the company did decide to bring back the R series it will not receive the welcome we all expect.
How do the players in the camera market compete? What are the differentiable features across firms? Prepare a strategic map of these firms according to two or three dimensions of your choosing?
In this modern film and camera age, the primary players or competitors in the camera industry are Canon, Nikon, Kodak, Fujifilm etc. Building a brands name is very important in the market and the only way to create a name for yourself in the market is by providing customers with a quality product with exciting features. The competition in the camera industry now is much more powerful and merciless than it was in the past era of cameras,and these days opponents have to pay much more consideration on research and development.
The players in the camera market compete using multiple ways. Multiple factors contribute to a company’s success. In camera industry, the competitors usually compete on the quality of their product. Cameras are not cheap at all if customers are paying a healthy amount for this piece of technology they are looking for a good quality product. In the camera industry usually, competitors face tough competition when it comes to the quality of camera lenses. New technology adaptation is also one of the factors on which players of this industry compete. As new technologies and innovations are being introduced frequently, professional photographers and hobby photographers are always looking for new innovations and they prefer a brand that introduces new features or the company that quickly adopts the new technology.
Strong craftsman and human resource with excellent skills set is also a key feature all the competitors look for. In Leica’s case, the company had many excellent craftsmen who helped and supported the company in manufacturing world class quality optical lenses. These lenses worked with excellent precision and provided quality results. The reason why the competitors were unable to recreate the same product was because of the skilled human resource Leica had and they did not.
The differentiable features among camera firms are usually the following:
- Provided quality of camera lenses
- Provided quality of camera body
- Heat exposure protection feature
- Price of camera
- Supporting materials like extra lenses, stands etc. available
- Camera compatible with different size of lenses
- 24/7 Customer or technical support provided
- If protection cover for cameras from extremely harsh conditions is provided
- Durability of product
- Is the product guarantee available or not?
- How long is the given guarantee? 5 years, 10 years or Lifetime…………………..
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