Leica Camera: A "Boutique" Firm Faces a World of Change Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PROBLEM STATEMENT:

The company is facing severe corporate threats in its field of business. These threats did not just arise from its competitors but also due to the advancement in the technology of the industry. The company has traditionally manufactured and sold analog and film based cameras but now with the changing trend and introduction of digital cameras in the market, the company must revive itself to this technological shift in the industry to remain profitable and to sustain its interests in the growing digital market.

STRATEGIC AUDIT

SWOT ANALYSIS:

STRENGTHS:

A traditional company that has been in the business for quite some time.

The Germanorig in camera manufacturing company, Leica, started business in the early 1920`s.The Company has been a traditional high quality camera manufacturer for quite some time. It carries its own brand image as a quality product manufacturer in the industry. The company has seen its ups and down however, it has been in the business for quite some time now and has gathered immense experience from its operations since then, which is strength for its management to take motivation from.

The company has running and established distribution and sales assets/facilities in the market.

Leica is not a new comer in the camera market and industry, as it has been around in the market much earlier than most of its colleagues of the industry and this is a plus point for itin order to diversify itsrange and product base. The supply and distribution facilities of the company are fairly old and have an established presence in the consumer markets.

The company has developed highly skilled work force.

The manufacturing process of the products in the organization has been a homo genous mixture of hand make as well as machinery use. Roughly half of the process in the company’s manufacturing plant requires hand work of the labor and the quality of the product is fluently rechecked during this manufacturing process to ensure the standards. Also, this has allowed the company to nourish and develop a very skilled labor,which is of immense strategic importance to any organization.

The company has the capital to pursue its operations.

The company suffered financial losses in the past and its credit lines were also squeezed by the banks. The management of the company persuaded its investors and shareholders for raising of capital to sustain the company. Since then, the company has revived itself from the past losses. It is now in a stable position and has the capital in its pockets to pursue its future goals and objectives.

WEAKNESSES:

The company lacks in the technological advancement of the industry.

Leica has been in the business for quite some time however,its primary products have been film based analog cameras and no doubt that the organization has excelled in this area of the business exceptionally and it has grown rapidly.However, times have changed now along with the introduction of digital cameras in the market. The tastes and priorities of the consumers have changed majorly. While there are still some staunch supporters of the film based camera show ever,the majority has moved on to the digital ones.

Leica is a small company and it lacks the resources to diversify its products.

The organization is a small company with limited facilities and manufacturing resources. It is due to this reason that the company cannot adopt and manufacture modern technology products while sustaining its traditional products. It is because of this that the company has failed to diversify its range while sustaining its historical products and it is now on the verge of choosing its future path/goals among the two.

The camera market is now a very competitive and developing market.

The camera market/industry has evolved immensely since the introduction of digital cameras in the industry. The sales in the market have increased in the past successive years and along with it, the competition has increased as well. The company will have to directly compete with the companies like Nikon and Canon who have established their dominance in the market.Leica Camera A Boutique Firm Faces a World of Change Case Solution

The company has only a limited production capacity.

Leica is relatively a small company and it has limited resources and facilities to exercise its production. The organization has been a victim of it in the past as well. The demand of its products out matches its production capacity, and this results in lead times in goods delivery and it is also a factor in hindering the growth and market of the company in order to achieve more profitability.......................

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