Nikon’s Problem
Nikon is a Japanese multinational corporation, which focuses on cameras, binoculars, camera lenses, microscopes, ophthalmic lenses and semiconductor fabrication. Nikon was founded in July 1917, and it’s headquartered in Tokyo, Japan. With strategy of optics and imaging products, Nikon is keeping going on researching new technology and developing advanced products. Till to March 2013, Nikon’s net sales have been over 10.7 billion dollars, and its operating income has been over 542 million dollars. Nikon’s business has already reached every part of the world, and its market is mainly aimed in United States, Europe, China and Japan. As the symbol of high technology and perfect quality, Nikon has been the world’s second largest manufacturer. With the huge success of camera, Nikon has leaded the world’s compact camera market for over 20 years. By enhancing its brand power and maintaining its full lineup strategy, Nikon is aiming to achieve a 25% to 30% share of the market by the fiscal year ending March 2016.
However, despite its success, Nikon currently faces a crisis with its compact cameras. The compact camera market is shrinking, mainly caused by the growing use of smartphones. The global digital camera market is forecast to shrink 29 percent to 102 million units next year compared with 144 million in 2010. Customers simply do not see the value of purchasing a $250 (or more) Nikon compact camera when their smartphone has a similar quality camera. Additionally smartphones are more versatile, offering owners the ability to go online and access social media. The disruptive technology of the smartphone has posed a serious threat to Nikon, which is the worst performer in the Nikkei 225 (NKY) index this year, falling 34 percent. To make matters worse, sales of Nikon’s higher-end reflex cameras are also slowing down. Nikon needs to develop a creative