Making SMaL Big: SMaL Camera Technologies

Submitted to Prof. Dr. James O’Hara

Students: Omid Attarnezahd MR101413 Bi Ruizhi MR111046 Fatemeh Baradari MR101424 November 2011

Introduction  

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SMaL Company came up with credit-size camera SMaL’s ultra pocket camera was recorded in Guinness world The first generation had been a commercial success for the company. Potential Market Small and Startup company so faced challenges SMaL should make a decision for the future

Analyzing the case study

SWOT

LIFE CYCLE

Competitors Pixim with combinig CMOS and CCD Foveon had X3 high quality image Casio Exilim Company in 2003 in size of back pocket with300 $

Strengths Credit size with thin Battery Camera Recorded in Guinness world in 2002 Sold more than a half million kits, Revenue reached to 10 million SMaL had healthy mix of revenue between its three original target markets. Hit Japanese market in April 2002 and the US market in June 2002

Strengths Unique benefits of Camera: light weigh -0.2 ounces- long battery life (500 to 1000 images). worked with different light condition  Leadership in using CMOS , Good partnership with Fujifilm AXIA, Logitech and Oregon Scientific.  In August 2001, they illustrated Ultra-Wide W3000 with high resolution and capable to capture moving images. 

Weaknesses 1.Defects of The first digital camera 2.Limited of Resource, investment, money and capital 3.Lack of expert marketing and strategic team. Quick approach: Did not get feedback, Remove ultimate customer 4.Did not focus on upgrading new camera with new demand and technology such as Wi-Fi and Bluetooth

Opportunities • CMOS is new technology. It is cheap, no bulky, low consumption of power  high demand • Increase the capital of company • Change the position of market or combine it  B2C + B2B • Increase and improve security and surveillance product. Start produce W3000 in large size • Penetrate to cellphone industry  phone camera

Threats • Low resolution 0.3MP  competitors: 1-3 MP • Good revenue = big distribution = big organization = many personnel, high skills, more stocks and equipment ≠ Current SMaL’s status • No feedback of customers=no expectation= no sell • Kit was packaged = unchangeable by OEM’s • New alternative= some compatitors for combining CMOS(cheap, low quality) with CCD(expensive, high quality)  Pixim, Foveon, Casio

Life cycle and recommends

Development Stage Early 1999

1

• Research and development • New Idea • Staffs very informal working together • Needs entrepreneur employee and idea • Very informal relationship between superiors and employees

SMaL: want to use CMOS chip for image sensor

Introduction Stage

Development Stage

Early Sept. 1999 1999

• High performance • New Technology • Finding investors SMaL: • Recruitment expert managers and employees completed • Good relationship between superiors and employees Prototype • A little informal trend in the organization camera • Make Prototype model

2

Growth Stage

Introduction Stage

Development Stage

Early Sept. 1999 1999

2001

2002

3 SMaL: Ultra-Pack Showed in CES, increased 10 people, partnered with Stata,IBM,Motorola,Compaq,…

• • • • • • •

First competitor come up Take partners Increase employee Prepare to produce the production in large size Start new idea for starting development stage Formal relationship in the organization Advertise for absorbing investors and catch the market

Growth Stage

Introduction Stage

Development Stage

4 Maturity Stage

August 2001 Ultra-Wide W3000 Early Sept. 1999 1999

2001

2002

• SMaL: small organization; • Casio’s Exilim; $150 instead of • $300?; continue selling kit?; • other supplier: Pixim, Foveon; $10M revenue; lack of strategic • • expert management •

2002

February 2003

• Many competitors (copycat) Mass product Multiple supplier High volume production High revenue and income Invest for new product and prototype Organization is very bureaucracy and attitude is formal Organization, superiors and staffs are luxury-oriented

2005

2006

Maturity Stage

Growth Stage

Introduction Stage

Development Stage

Middle 2002

August 2001 Ultra-Wide W3000

Early Sept. 1999 1999

2001

2002

2002

February 2003

• Option1: • Option2: Going on to produce (Ultra- Go to improve and step up Packet) kit and go to new security and surveillance stage 5 and 6? products: W3000 • Option 3: • Option5: Using VGA tech. in the “Smart” Use imaging tech. to a new app. Which is new market called place.(new market, new geog. “Automotive”.(revenue2005) place, new cycle and stage…

• Option4: New CMOS chip and VGA resolution is enough for portable phone.  Partner with Nokia.(Make an opportunity for 2006)

Saturation Stage

2001

Maturity Stage

Growth Stage

Introduction Stage

Development Stage

Early Sept. 1999 1999

2002

2002

2003

• Limited product design • Limited investment • Too many competitor (new tech, copycat) • Organization is very complexity and too bureacreatic • No idea and no new innovation or entrepreneurship • Decrease profit and rev. with increasing expenditures • Downsize company, eliminate some part, decrease employees

5

SMaL: ----

2002

2002

Decline Stage

Saturation Stage

2001

Maturity Stage

SMaL: ----

Growth Stage

Introduction Stage

Development Stage

Early Sept. 1999 1999

2003

• Decline of production • Lay off the personnel • Decrease or eliminate supplier base • Not recommend new design or continue to produce or design • Selling plant or some part of company or going under control of the other company • Bankruptcy and die the company.

6

Question1: What did SMaL do right?

Cont… • intimacy mode between the managers and new expert engineers Including automotive market.

Customer market

security and surveillance of market

Count… • started with small investment and small organization that was right way. • CMOS technology for developing cameras • The company not only had a good B2C position but also a good B2B position for relationship with other business firms.

Question2: What did SMaL do wrong?

Count… -

• limited resources. • they could not get the customers feedback about their products.

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• they did not follow these ideas because the lack of money and resources they produced and sold their kits to earn more money and revenue

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• make a decision on right way to show their solutions to the other companies.

Count… The company couldn’t offer the product to satisfy the needs of market.

Don’t have enough information. Not enough prepare to be blind to development The company wanted to develop each process fast, But they don’t realize it is impossible to reach this point with the company’s scale

Question3: What should SMaL do in the future?

… add on more advanced features

Enter security and surveillance efforts

Separate team, which developed a series of video products to do the video and keep them busy on the video.

capture a camera which has a widely, panoramic images Commercializing the high technology

… The company need to be flexible the form to be adapted to this system.

The company should be convinced that it product had a compelling value proposition.

Develop the cameras in phones

assess the employees (improving the amount and quality)

… Picking up speed the time frame

Progress the automotive efforts.

enhancing the camera technology to make the satisfactory for the different market.

try to take a “left turn” into completely new applications

• Thank you for your attention