Leica Camera Case Study

Leica Camera Case Study

Cherry Ugerio

Upper Iowa University

A.         Introduction

        i.        Brief description of what the company does

        Leica Camera is one of the leading manufacturers of mechanical cameras not only in Europe but around the world.

        ii.         How it developed historically

        Leica started back in the mid-nineteenth century German microscope manufacturer Ernst Leitz GmbH. In the 1920s, Oscar Barnack and Ernst Leitz II partnered up to develop and manufacture the first small-format camera. They innovated a small compact camera that created a small negative (35 mm became the standard they created) and they later used an enlarger to magnify the image, which resulted to larger print out. The company eventually became Leica. It was the combination of Leitz and the German word for camera. Moreover, Leica manufactured the first point-and-shoot camera that became a popular camera used by professional photographers around the world. In 1990, Wild Leitz merged with the British optical group Cambridge Instrument Company to create the Leica Holding B.V. group. Then later in 1994, former CFO Klaus-Dieter Hofmann lead the buyout of the camera division and it was later named as Leica Camera AG. The company eventually went public in 1996. In 2004, Kaufman family acquired a share at Hermes then in 2006, Steven K. Lee, the former VP of the company Best Buy became the CEO.

        iiii.         What problem it is experiencing

        Leica is experiencing tougher competition not only among its rivals and also to the emerging digital camera technology in the market. And because of that, Leica has to adapt to the rise of the digital camera for them to stay in business and be relevant in the competitive business world of cameras.

        iv.        How are you going to approach the issues

        Change is the only constant thing in this world. The time of mechanical cameras and negatives are behind us; digital camera has taken over. In order to stay relevant and keep the business running, Leica needs to adapt by creating its own digital camera line and start venturing on other business opportunities. They need to innovate better and more modern products to compete with its competitors.

B.        Strategic analysis section

        i.        SWOT analysis, analyze and discuss the nature of the problems of the company’s business-level and corporate strategies

        Strengths:        1. High profitability

                        2. Barriers of market entry

                        3. Experienced business units

                        4. Existing distribution and sales networks

                        5. High growth rate

                        6. Skilled workforce

                        7. Monetary assistance provided