Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 867 views

    OM2 LeitaxCase GroupE7

    Uploaded by

    Ashfaq Shaikh
    The document provides an overview of the digital camera market and Leitax's position within it. It discusses that by 2004, the US digital camera market was $8 billion and shipments rose 36% from 2003. Leitax had a small 6% market share compared to leaders like Sony, Canon, and Olympus. It also summarizes that Leitax was established in 1997 to focus on digital cameras, had issues with delayed and excess inventory for some camera models, and underwent major reforms in 2002-2003 by appointing new executives and launching a redesign project to improve its supply chain operations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    OM2 LeitaxCase GroupE7

    Uploaded by

    Ashfaq Shaikh
    867 views9 pages
    The document provides an overview of the digital camera market and Leitax's position within it. It discusses that by 2004, the US digital camera market was $8 billion and shipments rose 36% from 2003. Leitax had a small 6% market share compared to leaders like Sony, Canon, and Olympus. It also summarizes that Leitax was established in 1997 to focus on digital cameras, had issues with delayed and excess inventory for some camera models, and underwent major reforms in 2002-2003 by appointing new executives and launching a redesign project to improve its supply chain operations.

    Original Title

    OM2_LeitaxCase_GroupE7

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides an overview of the digital camera market and Leitax's position within it. It discusses that by 2004, the US digital camera market was $8 billion and shipments rose 36% from 2003. Leitax had a small 6% market share compared to leaders like Sony, Canon, and Olympus. It also summarizes that Leitax was established in 1997 to focus on digital cameras, had issues with delayed and excess inventory for some camera models, and underwent major reforms in 2002-2003 by appointing new executives and launching a redesign project to improve its supply chain operations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    867 views9 pages

    OM2 LeitaxCase GroupE7

    Uploaded by

    Ashfaq Shaikh
    The document provides an overview of the digital camera market and Leitax's position within it. It discusses that by 2004, the US digital camera market was $8 billion and shipments rose 36% from 2003. Leitax had a small 6% market share compared to leaders like Sony, Canon, and Olympus. It also summarizes that Leitax was established in 1997 to focus on digital cameras, had issues with delayed and excess inventory for some camera models, and underwent major reforms in 2002-2003 by appointing new executives and launching a redesign project to improve its supply chain operations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Leitax: Case Analysis

    Group E7: Avik Das [250] Manish Chandra K N [263] Kashmir Thakur [265] Nishant Bagde [272] Shaikh Ashfaqhusain [285] Shifali Sashidharan [286] Shrinwanti Banerjee [287] Sudipta Samanta [291]

    Case Facts: Digital Camera Market


    By the fall of 2004, US digital camera market was $8 billion, up from $5.7 billion in 2003

    Digital camera shipments in the US rose to 22 million units, a 36% increase over 2003.
    In 2004, Kodak was the leader in the US digital market with a market share of 22% Leitax had a very less market share of 6% compared to the big players Sony-20%, Canon-16%, Olympus-10%

    Case Facts: Digital Camera Market


    Direct threat to Film cameras: Kodak announced halt of reloadable film cameras in 2005

    Reduction in prices with introduction of CMOS image sensors


    Worldwide growth rate began to decrease: 21% for 2005 and 5.2% for 2006 The estimated forecasts peaked in December 2006 when penetration rate was 63%. Growth in 2007 was expected to be negative.

    Case Facts: Leitax


    Established in 1997 as a separate company of Newplex group specifically for Digital Camera market.

    Newplex: $22 billion print & imaging product company founded in late 1970s
    LX280 Zoom Camera: The first point and shoot megapixel digital camera under $1000 2002: Became a global seller with $423 million revenues and a net income loss of $7.5 million

    Case Facts: Leitax


    Organized in three geographical areas: Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC) Distribution Centres located in Little Rock, Arkansas; Amsterdam, Holland; Hong Kong, China Little Rock DC sold directly to resellers; the other DCs sold to wholesalers who then shipped to resellers Production handled by two contract manufacturing plants in China, and one each in Mexico and Chile

    Case Facts: Leitax


    Contract manufacturers made either retail-ready units or viewer-ready units

    Leitax maintained a product portfolio of eight camera products offering broad optical zoom range, megapixel resolution, etc

    Average life cycles of 17-22 months and was getting shorter. High-end products: shorter product lives

    Leitax in Crisis
    Launch of one camera was delayed: Estimated cost of delay was $19.5 million

    One of the digital camera outsold its inventory: Lost sales estimated to be $4.5 million

    One of the camera reported sluggish sales: Excess and obsolescence costs were $2.5 million

    Major Reforms in Leitax


    In Late 2002, a new CEO and several new vice presidents were appointed. Luiz Cruz: Senior VP for Global Operations Kevin C. Fowler was hired and in May 2003 was promoted from head of DMS group to senior director of Planning & fulfillment Brian J. McMillan was made the head of Demand Management Services (DMS)

    There was a need for the entire supply chain operation to be redesigned The Redesign Project

    The Redesign Project


    To reduce inventory levels across the supply chain To increase the velocity and the accuracy of planning information

    To increase the supply upside and downside flexibility

    To improve on-time performance to customers

    You might also like