For this writing assignment, I have selected Digital Camera Industry, which is a somewhat new industry, and its roots derive from Photographic Equipment & Electronics Industry. Here, I plan to examine the innovations that occurred since the year 2000 and determine which company or companies have innovated and what their impact has had on the industry. Also, I will talk about entry barriers to this market and major product differentiation campaign.
Welcome to the new millennium. As you have noticed, many innovations rolled in as we entered the new century, one of them being a Digital Camera, which is currently a hot item and is on everyone's wish list. Before I go into details, let me first tell you about the Photographic Equipment & Electronics Industry. In late 1800's and early to mid 1900's, people used still film cameras that developed only black and white photos. In the mid to late 1900's, color photography dominated the market, and in late 1980's, the first instant color photo camera was developed by Polaroid.
All these innovations were great, but it doesn't come close to what was developed in late 1990's and boomed in early 2000: the invention of a digital camera. Yes, it's true that the good quality digital camera is expensive, but that's just one of the things consumers have to think about in buying this luxury item.
According to 2000 statistics, Sony, Olympus, Canon, Fuji and Kodak, which are the market leaders, capture about 65% of the digital market industry. Sony alone, the market leader, had 35% of revenues. In early 2002, the same five companies accounted for half of the total market; thus we see the fierce rivalry for digital cameras. We clearly see what has happened: new entry barriers (primarily from Asia and Europe) happened during these...