KonicaMinolta circles the wagons

Discussion in 'Minolta' started by jfitz, May 11, 2005.

  1. jfitz

    jfitz Guest

    Citing "an extreme loss of competitiveness" in their photo imaging business,
    KM announces, as part of their V-5 medium term plan, their intention to
    scale down their digital camera business. The business plan calls for
    concentration on "high-value-added products" in their digital camera
    business in an attempt to stem the flow of red ink in that division.


    jfitz, May 11, 2005
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  2. jfitz

    RichA Guest

    "High value added?" That apparently means DSLRs.
    RichA, May 11, 2005
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  3. jfitz

    Tony Polson Guest

    The figures on page 14 of that document make grim reading, especially
    for anyone who has recently invested in a Konica Minolta DSLR.

    The heading "Downsizing operations to quickly break away from the
    deficit" and the stated intention to reduce turnover by 40% shows that
    the company is desperate to reduce its exposure to digital imaging.

    Phrases like "Scale down business size", "Break away from chronic
    deficits" and "Continue to execute restructuring programs" show
    clearly the direction Konica Minolta is intending to take.

    Even so, the projected loss of 34 billion yen is massive.
    Tony Polson, May 11, 2005
  4. jfitz

    Alan Browne Guest

    Oh shit! I hope this means their low end Dimage line and not their
    Maxxum/Dynax products.
    Alan Browne, May 11, 2005
  5. jfitz

    Alan Browne Guest

    I agree except for the "recently invested" part. The price of the
    camera is a small fraction of my lens investment, so the best strategy
    for me would be in fact to buy one or two more Maxxum DSLR's, whether
    7D's or perhaps others if K-M come out with an updated model... which is
    not out of the question.

    Alan Browne, May 11, 2005
  6. jfitz

    RichA Guest

    Looks like price competition in digital cameras and subsequent price
    erosion has hurt all the major companies.
    RichA, May 11, 2005
  7. Market saturation is also occuring, though not in digital SLRs. The huge
    growth is over.

    The market share numbers for digital SLRs are very grim for everyone except
    Canon and Nikon. It's hard to compare any other type of product to SLRs,
    where the consumer essentially has to commit to one manufacturer when he or
    she makes the main purchase of the camera, and the cost of switching is so
    Steven M. Scharf, May 11, 2005
  8. Considering the products that have been shoveled out, no surprise.
    Canon is way ahead of everyone else, Nikon's doing a decent job, and
    the other guys are too late to the party with too little for too much.
    Albert Nurick, May 11, 2005
  9. jfitz

    Tony Polson Guest

    In which markets? What source for your figures? What figures?

    Or just the usual Scharf BS.
    Tony Polson, May 11, 2005
  10. At the present time, Canon sells about 65% of the digital SLRs, Nikon sells
    about 33%, and all of the other manufacturers split the remaining 2%, with
    some of them at essentially 0%. Clearly this cannot continue. Some or all of
    the other manufacturers will eventually have to exit the digital SLR
    business; they will never achieve a positive return on investment with such
    a tiny market share.
    Steven M. Scharf, May 11, 2005
  11. jfitz

    Tony Polson Guest

    In which market? What is the source of these figures?

    Clearly you cannot continue posting these figures until you provide
    some justification for them. If you have any, that is.
    Tony Polson, May 11, 2005
  12. Interesting numbers; what's the source?
    Albert Nurick, May 11, 2005
  13. Extrapolated for 2005 from the NPD Group U.S. numbers for 2004. The actual
    numbers may be +/- a couple of percent, and we won't know the full 2005
    numbers for a while obviously. Doesn't really matter. Even if it were as low
    as 60% for Canon and 30% for Nikon, the remaining 10% would still not
    support six other manufacturers, unless prices fell so low that the TAM went
    way up (as happened for film SLRs). Not impossible, but a lot more unlikely
    than was the case in film days, due to the difficulty of developing sensors.
    It's similar to the x86 CPU industry, with Intel=Canon, AMD=Nikon, and a
    host of others out there losing massive amounts of money despite sometimes
    having a superior product.

    Steven M. Scharf, May 11, 2005
  14. It won't change the endemic problem KM have of absolutely terrible
    management and rotten business ethics. Their digital camera division
    would turn a profit just as their QMS division would if they got back in
    touch with what their customers want and expect.

    KM Australia is not the only division to contribute to the bleeding
    accounts. Before they will have a hope in hell of making any inroads
    into any market they'll have to stop using their dealer base as
    sacraficial lambs when their products fail to meet specifications.

    What sort of International company would appoint a backyard operator as
    their "authorised service agent" and train them by sending a CD of
    information? Seriously... This company is going to go belly up if they
    don't start getting their act together. Today's success firms are driven
    by their customers, not their bloody minded managers.

    [email protected], May 12, 2005
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