Zequn Fan (Ford)
Executive Summary
As the technology of digital camera evolving quickly, the once leading camera Leica now faces serious problems on its product lines and financials. In order to make an informative decision on Leica's next move, the competition environment will play a significant roll. Therefore, the following case study will feature a SWOT analysis to come up with recommendations upon the future of Leica.
Background
Leica is one of world famous high-end camera company based in Germany. Leica is known for its ensured quality and precision. In old days, Leica's SLR is the symbol of world-class photography. Later, it transfers to R series as the digital technology changing the whole industry. The brand of Leica and its most remarkable R series have strong penetration power upon fans and professional photographers. However, with digital technology emerging, the competition pressures from low-end, such as Canon and Nikon, and from Hasselblad make Leica nearly bankrupt. Fortunately, Leica's M series seems to be the way out while its famous R serious almost loses business feasibility. The future of Leica depends a lot on the next move.
Challenges of Leica
1. Rapidly evolving digital technology V.S. Leica's relatively low react speed and long product life cycle.
2. Intense competition pressure from low-end companies such as Nikon and Canon, as well as high-end player Hasselblad.
3. The manufacturing capacity is very limited, causing back orders of the newly successful M series.
4. The resources Leica has constrain its development. Leica has to choose one single direction rather than develop a whole spectrum of products. To be more specific, Leica has to choose to either focus on M or R. Also, Leica has to choose either in-house or out-sourcing. Furthermore, Leica has to choose whether to introduce a new product line.
SWOT Analysis
Since the format of Hasselblad is different from Leica, the main competition will be from