Digital Camera Industry Analysis

Overview of the Industry Threat of New Entry For the digital tv camera manufacture, refreshed entrants neediness to consent economies of scale and distribution channel. As for economies of scale, tender entrants need to invest a lot in overpriced production equipment, huge plant, lots of skill labours, whats more, they need to withdraw their distribution channels to sell the products, which be actually difficult requirements for the new entrants to meet. Hence, the threat of new immersion is low. emptor Power Digital cameras consumers atomic number 18 normally small buyers, but they ar very all-important(a) to the attention. Consumers can switch between alternatives slow without incurring richly switching costs. Since the functions of digital camera are very equivalent among different brands, the product has low differentiation. Moreover, in that location are umteen alternatives in the market: when Kodak introduced the DC40 in 1995, at that address were two other models under $1000, but by 1996, there were 25 different brands in the category. (Page 6 case) Therefore, buyer power is high in the digital camera industry. supplier Power Based on the fact that a digital camera is made from m some(prenominal) different parts, the industry should have some small suppliers. Also, assume that there are many suppliers for any specific part of a digital camera, the self-colored industry has a very low switching cost.

The industry is very important to supplier because mass production of digital camera would need huge supply of part. As a result, the supplier power is low in the industry. Threat of Substitutes The principal(prenominal) sub stitutes of digital camera are instant camer! a and traditionalistic camera. In terms of function, the two substitutes have similar functions with digital camera, which lowers the uttermost price that buyers are willing to pay. Moreover, the two substitutes have captured a big market share. (Page13 case) Hence, the threat of substitution is high. tilt Among real Competitors Rivalry among existing competitors is high. First, digital cameras...If you necessity to function a full essay, order it on our website: OrderEssay.net

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