Globus Camera Industry

Executive Summary

Camera Pro was expected to grow earnings per share (EPS) at least 8% annually through Year 10 and at least 4% annually. Through consistent revenue grow and cost cutting they expected to continue to raise EPS. It was expected that the 8% growth expectation could be met by strategically pricing our product to ensure that our retailers could sell all inventories that was ordered. EPS only met investor expectations in year 9 and came close in year 12. Share prices only reached a high of $41 and revenues although reaching $250 million still resulted in low net income due to high production costs.

Through retrenching efforts it is recommended that Camera Pro will make some changes to its strategy in order to improve its bottom line and gain competitive advantages. Prices will need to be lowered to match market averages such as entry level prices reduced from $120 to average of $110 or lower. The multi-feature reduced from $430 to average market price of $390 or lower. Through vertical integration through the supply chain and proposed strategic alliances with company D we can reduce production cost significantly by about 25-40% which allows us to reduce the price as mentioned above, resulting in market share growth. We will concentrate these efforts in the Latin America and Europe Africa market where we are expected to have exchange rate advantage in the upcoming year. Through these efforts it is anticipated that by the end of year 13 we will be in line with the initial investor goals that were set. These efforts are expected to result in market share taken from ADigital REEB and Big Camera Company who have dominated the camera market so far.

TABLE OF CONTENTS Page

EXECUTIVE SUMMARY.......................................................................................................................2

INTRODUCTION……….........................................................................................................................4

STATEMENT OF PURPOSE...................................................................................................................7

ASSUMPTIONS…....................................................................................................................................8

KEY PERFORMANCE FACTORS

1. Pricing and quality………………..........................................................................................................9

2. Production cost variables........................................................................................................................11

3.