Download - Nikon Strategic Proposal
Agenda
1. Strategic Proposal
2. Company Analysis
3. Industry Analysis
4. Strategic Plan
5. Pro Formas
6. Timeline
7. Conclusion
Strategic Proposal
Develop two high resolution mobile phone
cameras, with the goal of becoming the
supplier of these cameras to Micromax
Informatics Limited.
Nikon Overview
● Headquartered in Tokyo, Japan
● $1.00 = ¥118.6
● Generated more than ¥46.8B in Net Income FY14
● Operates in 3 different industries
Semiconductor Machinery Manufacturing
Optical Instrument and Lens Manufacturing
Photographic and Photocopying Equipment Manufacturing
Photographic & Photocopying Equipment
Manufacturing Industry
● ~92% of Nikon's profits
● Industry in decline
● Shrinking revenue in the global digital camera market
● Cautionary indicator of future trends for company
Proposed Strategic Plans
1. Open 15 Nikon stores in the United States.
1. Divest the Instrument and Precision Equipment segments.
1. Develop two high resolution mobile phone cameras, with the goal of
becoming the supplier of these cameras to Micromax Informatics
Limited.
Major SWOT Factors
● Demand for compact digital cameras is in decline
● Photos taken using smartphones grew from 17% to 27% (2010-2011)
● Smartphone industry leaders using their own low-quality cameras
● Strong demand for cameras in India
● India projected to be #2 smartphone market in the world
Micromax Informatics Limited
● Second largest smartphone company in India
● Sold 23.2 million smartphones in FY 2014
● Bolt A Series, Canvas A Series, Canvas Turbo/Knight
● Expanding global presence
Dual Benefit
● Strong Competitive Advantage
● New market penetration for Nikon
● High quality cameras in Micromax phones
Timeline
Revenues
are
Decreasing
Nikon
Boosts R&D
Plant
Expansion
Contract with
Micromax
Sales of ~22M
Mobile Phones
Increases
Revenues
Keep up with
Technological
Trends
Constantly
Update
Contract
Potential to
Expand
Global Market
Strategic Plan
Implementation