Originally posted by monochrome Here is the essential conundrum for Pentax (doesn't matter who owns Pentax).
The USA market, whether or not largest on earth any more, is at least the marginal market for high-margin products. Everything depends upon whether the USA is a relevant market for Pentax now and in the future. Without an effective marketing and distribution channel in the USA Pentax has a very tough challenge achieving volume at high-margin prices. We've seen that Pentax doesn't desire volume at low-margin prices. Canon and Nikon dominate the store trade - box and boutique.
Pentax can have all the products we want, complete, ready to manufacture - but until PRIAC gets its act together and PRI comnmits long-term, repetitive investment into market development PRIAC is going nowhere. Without PRIAC high-margin products aren't likely to achieve launch volume globally.
Without PRIAC there won't be - there can't be - any Pentax FF camera (and lenses, and attachments, and accessories).
Until just 6 months ago Ricoh's business plan was essentially, lay off employees of IKON Office Systems (restructure) globally to recover fromt the disastrous 2008 acquisition of that company. Pentax cost $100MM +/-, not a small sum in the middle of a losing period, but not a backbreaker, either. However, the add-on investments necessary to rebuild Pentax (not the product stuff, which they have - the distribution channel), especially in PRIAC, was a deal-breaker. When you are retrenching in one division expanding in another just isn't going to happen - the Finance Guys won't allow it, and money always has the deciding seat at the table. Always.
Pentax is telling us they have the desire, they have a plan, they have the technology, they have the prototypes, they have the business relationships with third-party suppliers --- they have the Product!!
But they don't have permission of the Finance Guys yet. And they won't get that until PRIAC is fixed. Good luck on that, Mr. Malcolm.
Ogl - you don't know your business as well as you seem to believe. Its all about money. Always has been, always is and ever shall it always be.
I usually agree with you, monochrome, but here I'll differ.
It's not unusual to cut back in one market, one business unit, one product line to make investment possible in another. Tellabs just announced that today, I think. Dropping a recently-introduced router product line to divert resources to a more advantageous part of the business. AT&T and Verizon have been starving their wireline business to invest in wireless. There are more, just in telecoms, but you get the idea. It happens because the finance guys demand it. (Admittedly an oversimplification.)
And I wouldn't be at all surprised if Pentax can get an FF product line into the market w/o turning around PRIAC first. There's a lot to do here but the FF deployment may be an integral part of the turnaround - done concurrently rather than consecutively. In the Americas at least, the slogan (associated with an image of the alphanumeric-string-of-your-choice body) could be "This is the face of the new Pentax!" Together with Pentax staff (hired again through a temp agency) visiting shops in LA, NY, and Kendrick, Idaho. Or is that Poseyville, Indiana? Almost certainly not Hell For Certain, Kentucky. That's Kodak country. But I digress ....
I am, though, eagerly awaiting more energy and better execution from Golden, Colorado. Probably more so than an FF body requiring glass I cannot immediately afford.