Digital Camera Industry Analysis

Overview of the Industry Threat of New Entry For the digital tv camera manufacture, refreshed entrants neediness to incur 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 obtain their distribution channels to sell the products, which be actually difficult requirements for the new entrants to meet. Hence, the threat of new insertion is low. emptor Power Digital cameras consumers atomic number 18 normally small buyers, but they are very authorized to the patience. Consumers can switch between alternatives slow without incurring steep switching costs. Since the functions of digital camera are very same 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 pose were two other models und er $1000, but by 1996, in that location 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 umpteen small suppliers. Also, assume that there are many suppliers for any specific part of a digital camera, the whole 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 Substi tutes The primary(prenominal) substitutes ! of digital camera are instant camera and tralatitious 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. disputation Among real Competitors Rivalry among existing competitors is high. First, digital cameras...If you compliments to function a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay