B

RAND:
CANON;
INDUSTRY:
DIGI
T
AL CAMERA MARKE
T

1.

Industry competition: Intensity of rivalry

H
igh c
o
ncentrati
o
n rati
o
: with the largest pr
o
fits
o
wned by the Big 3 Can
o
n, Nik

o
n andS
o
ny Other c
o
mpetit
o
rs
P
entax, Olympus, K
o
dak, Samsung,
P
anas
o
nic, Casi
o

T
he digital camera market is a mature market and highly saturated with sl
o
w gr
o
wth.
H
igh exit barriers

T
he industry is highly capital intensive, with aut
o
mated machinery whichare specially designed t
o
build camera.Rivalry is extremely intense and aggressive; the pr
o
duct devel
o
pment by Can
o
n 450D ismatched by Nik
o
n D90.
P
r
o
duct differentiati
o
n are based
o
n the strength
o
f the brand due t
o
high c

o
mpetiti
o
nc
o
mpetit
o
rs c
o
unter-react t
o
the activity
o
f an
o
ther firm; f
o
r example S
o
nys devel
o
pment
o
f digital bridge camera has caused Nik
o
n, Can

o
n and Olympus t
o
intr
o
duce their
o
wn bridgecameras. C
o
mpetiti
o
n is intensified in the f
o
rm
o
f advertising, and brand exp
o
sure t
o
build brand equity. All incumbent firms drive f
o
r pr
o
duct devel
o
pment and quality