cup more than half empty?
We've been hearing this week that Nikon will layoff ten percent of their workforce in the next two to three years, through attrition and early retirement. The cause is the collapse of the camera market and their concentration of resources in two shrinking industry sectors. Why is this happening? What did Nikon get so wrong? And who's next?
First some predications: Nikon will not go out of business. Sales are down but they are no where near the point of hemorrhaging money like some dot com start up delivering cupcakes via Fedex. They still earn a profit. No one is rushing to buy Nikon (the company). Samsung put a hard stop on that kind of thinking when they wisely exited the camera market after studying the numbers. Photography is changing faster than most camera companies can imagine but most will catch up in one way or another. Finally, Nikon will likely continue to diversify just as (working) photographers have been doing over the last decade.
All camera sales are dropping even though there are bright spots chocked through the market. Nikon's drop seems the most dramatic, in part because they are one of the "big two" in terms of market share. So, what are they doing more wrong than everyone else? From my point of view (having surfed through most of the major systems on the market since the dawn of digital imaging) their biggest sin is a rigid clutching to their own recent history of making cameras. In the early years of digital just having a camera that worked reliably and also felt familiar (DSLR-like) to consumers was enough to allow a company to ride a heady wave of ever increasing sales, happening in ever shortening product cycles. Nikon strived to make cameras that looked and worked like decades of previous Nikon film cameras with the only change being a transition from film to ever improving image sensors.
This worked so well for so long that they now
First some predications: Nikon will not go out of business. Sales are down but they are no where near the point of hemorrhaging money like some dot com start up delivering cupcakes via Fedex. They still earn a profit. No one is rushing to buy Nikon (the company). Samsung put a hard stop on that kind of thinking when they wisely exited the camera market after studying the numbers. Photography is changing faster than most camera companies can imagine but most will catch up in one way or another. Finally, Nikon will likely continue to diversify just as (working) photographers have been doing over the last decade.
All camera sales are dropping even though there are bright spots chocked through the market. Nikon's drop seems the most dramatic, in part because they are one of the "big two" in terms of market share. So, what are they doing more wrong than everyone else? From my point of view (having surfed through most of the major systems on the market since the dawn of digital imaging) their biggest sin is a rigid clutching to their own recent history of making cameras. In the early years of digital just having a camera that worked reliably and also felt familiar (DSLR-like) to consumers was enough to allow a company to ride a heady wave of ever increasing sales, happening in ever shortening product cycles. Nikon strived to make cameras that looked and worked like decades of previous Nikon film cameras with the only change being a transition from film to ever improving image sensors.
This worked so well for so long that they now