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Lowcost and differentiated strategy in the digital camera industry

Thecamera industryis one of themostadvancing industriesin termsof technological innovations.Thesechangesare expensivedue to extensiveresearch.Thecompanies,forthisreason,desireto havefavorableeconomiesof scalethrough increasedprofits.Due to competition,companiesapplyvariousmethodsin distribution,advertising,andbranding to increase their sales. Lowcostanddifferentiated strategyare two methodsthat may be adoptedto increasetheeconomiesof scale.

Low-coststrategyis an approachthat involvesthereductionof priceof an itemto increaseits demand.Lowpricesattractcustomersandcompaniesgaina bigmarketshare.Thestrategycomeshandyin situationswherea productfacesstiffcompetitionfrom closesubstitutesin themarket.Itis favorableespeciallywheneconomiesof scaleare desirablethrough significantsales(Bacanu 136). Differentiated strategyinvolvesthepresentationof a uniqueproductin themarketorfora particularsegmentof customers.Itis favorablewherethecompanyhas enoughresourcesto spendon advertisingandproductpromotion(Bacanu 137).

Inthedigital camera industry,low-cost strategyinvolvestheloweringthepriceof a particulartypeof camera to attractdemand.Digital cameras donot havethesamepricedue to companies`regulationsandthecostof production.Acompanycan reviewthecostof digital cameras in themarketandtagits camera at a lowerprice.Thestrategywill be applicablewhenthere is a lotof completionfrom differentbrands.There is a needto havea significantmarketshare,andthisis practicalwhena companywinsmorecustomers.

Thebestlow-cost strategyin thedigital camera industryis theonethat allowsfora surveyof thesalesmadeby differentcompanies.Thebusiness`ssalesare comparedagainst thoseof competitorsto assessthelevel of competitionin themarket.Acompanythat doesnot matchits competitorswill usethisstrategyto lowerits prices.

Thedifferentiated strategyin thedigital camera industryenablesthecompanyto makeuniqueproductswith their differentcategoriesof customers.Differentcameras areusedforvariousoccasions.Thebeststrategyin thisis to develophigh-quality individualitemsthat matchtheevents.Itwill involvetheproperdesignof partsof thecameras. Itis advisablefora companyto developits partsinsteadof usingothercompanies`partsunder license.Theapproachwill provetheir cameras originalsince theyownall theparts.

Underthisstrategy,thecompany should use upgradable systems in the cameras.Itshould giveroomforthirdpartysharingthrough licensingto giveroomforimprovementof thecamera`s features.Thecompany`sabilityto investin extensiveadvertisingdepends on thesizeof its revenue.

Digitalcamera simulation can alsoemploythetwo tools.Mostof thedigital cameras havethesameopticcharacteristicsandfairlythesamespatial resolution(Mait 81). Acompanycan usethisadvantageto lowerthepriceof its cameras with thesamesimulation. Customerswill opt to goforthecheapercamera becauseithas thesamefeatures.Agooddifferentiated strategythat can be one that comesup widthuniqueimageprocessors, high-end optics, andimagesensor (Mait 84). Companyengineerscan achievethesethrough extensiveresearch.

Inconclusion,acompany in this competitive industry can apply the two strategies tostand out from the rest in terms of price and uniqueness.Whenapplied,themethodswill resultin a biggermarketsegmentandincreasedprofits.

Workscited

Mait,Joseph. “Application Centered Research in Optics. Applied Optics51.2 (2012):80-90. Print.

Bacanu,Bogdan. “Differentiation vs. Low Cost Strategies.” Journalof Marketing and Management 5.2(2010):135-42. Print.

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