Originally posted by Class A But it cannot be about maximising profits only, can it? If that were the sole goal Pentax should specialise in credit default swaps or similar.
I believe there will always be a market for enthusiast and professional photographers. Prices may go up if manufacturing numbers go down but a brand like Pentax should stay true to its competences rather than following the lure of highest profit.
It's should be about maximizing long term profits, not short term profits. Capitalism only WORKS when everyone is attempting to maximize their LONG term profits, because it's the most profitable, long term, for everyone to make what they are best at making in a natural monopoly, and no negative effects can occur because everyone controls everyone else's supply chain. In a non-utopian dreamworld, though, it's still best to maximize long term profitability, which involves BOTH protecting the strength of the brand AND improving the quality of the product, while effectively marketing it, and pricing appropriately.
Short term rush to market high profit items can be short term wins and long term economic anchors, if you cannibalize your good will and product qualities for those windfall profits.
They've got to do both. They NEED to establish themselves as a "safe" choice for new camera buyers. You have to have a customer base to make profits because you can maximize them, of course. They also NEED to market to the high end and keep long term loyal repeat customers buying, and establish their new customers as evolving repeat customers.