Better yet, don’t compete against the giants at all. Be a profitable niche player with a tiny invested capital* footprint.
* ROIC on medical devices is 20%. ROIC on large-enterprise digital photo equipment is 8%. Do the math and understand why Hoya stripped the high-return assets, repurposed the Japan real estate, liquidated the Pentax inventory of lenses at fire-sale prices, then sold the husk to RIcoh for pocket change. Understand why RIcoh wrote down the former compact camera plant as ‘Impaired Plant & Equipment’ and transferred it to Automotive. That actually affected the earnings of big Ricoh!
Ricoh Imaging is truly a tiny company. It just doesn’t make business sense to do the things you say they ‘have to do’ to succeed. Competing with Canon, Nikon, Sony, Fuji and m43 using the traditional high volume business model would not work.
They’re actually being very creative keeping the brand alive this way, sharing Optical engineering expertise
with Ricoh and receiving manufacturing process expertise
from Ricoh.
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Originally posted by TaoMaas Sometimes you've gotta think outside the box if you're going to compete against giants. Back in the film days, 3M made Scotch brand film, but the market was dominated by Kodak and Fuji. So 3M did what Pentax is doing now. They saved themselves a ton of money by not advertising. That allowed them to sell their film at a lower cost than Fuji or Kodak, but instead of trying to woo regular consumers, 3M sold their film to Wal Mart, Target, Fotomat, and many more places that carried "house brand" film. It was enough of a market to allow them to be the 3rd largest film company here in America...and they did it with little to no advertising.
I don't know how it is other places, but since our local camera store doesn't carry Pentax, they don't have much of a market for any Pentax gear that they take in on trade so they tend to mark it down.