Kodak at a Crossroad: The Transition from Film-Based to Digital Photography
Traci Dawson-Butcher
1. What are the standout features of the photography equipment industry? How do economic characteristics differ between the film-based and digital segments?
The digital photography industry is fast-paced and crowded, offering razor thin profit margins. The photofinishing and retail camera industry includes about 8,000 locations with combined annual revenue of $7 billion. Ritz Camera Centers operates over 1,300 stores. The industry is concentrated: the 50 largest companies hold more than 60 percent of the market. A typical store has five employees and about $500,000 in annual revenue.
Competitive Landscape - Demand depends on consumer income. Profitability of individual companies is linked to marketing, and, for photofinishers, efficiency of operations. Large companies can have economies of scale in purchasing and operations. Small companies can compete successfully by......
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Approximate Word Count: 3831
Approximate Pages: 15 (260 words per double-spaced page) |