Capstone Project on "Olympus: Business"

Capstone Project 11 pages (3068 words) Sources: 4

[EXCERPT] . . . .

Olympus Company Analysis

Most of the disadvantages determined by the process of globalization rely on the fact that companies that cannot invest large amounts of money in their international development cannot benefit from the same opportunities as companies that do. Small local companies are also disadvantaged because they cannot make the economies of scale that large corporations can make, and are forced to reduce the prices of their products and reduce their profits also, or not reduce the prices of their products and reduce their sales.

Olympus is one of the most successful companies on international level. The company focuses on the manufacture of products in imaging, medical, life science, information and communication, and others (Olympus, 2014). The markets that Olympus Corporation mostly serves are represented by Japan, Europe, Asia, the U.S., and other countries in South America. The business segments that Olympus addresses are: imaging systems business, medical systems business, life sciences business, information and communication business, and others.

As it can be observed, Olympus addresses several business segments that are interrelated. This allows the company to specialize in these areas. In addition to this, Olympus addresses business sectors where governments and private companies make important investments.

SWOT Analysis

The SWOT Analysis on Olympus Corporation is intended to identify the strengths, weaknesses, opportunities, and threats that are most likely to influence the company's activity. There are numerous issues that can be addressed by the SWOT analysis, but in this case the analysis focuses on the most important issues that can provide significant information required in order to make recommendations on improving the company's situation.

Strengths

The strong points that Olympus benefits from help the company maintain a strong position on the market. In order to improve its success, it is important that the company identifies these strong points and invest in activities that can provide such advantages. The analysis on Olympus Corporation has revealed several strong points that must be analyzed.

Opto-digital technology

The opto -- digital technology is probably the most important strong point of Olympus. This technology has helped Olympus develop a series of devices intended to satisfy the developing needs of digital items consumers. The development of digital products has helped Olympus use this technology in order to attract a large number of customers, and establish a strong position on the market. The strong position on the market determined by the innovation of this technology helped Olympus increase other business segments also.

Diversified business

Olympus Corporation is active in several industries, like: imaging systems business, medical systems business, life sciences business, information and communication business, and others. The company is active in numerous markets, like those in Japan, Europe, Asia, the U.S., and other countries in South America. As it can be observed, the company addresses developed markets where consumers have great spending power. However, if the company focuses too much in such markets, it can become a weakness at some point because other competitors are likely to address markets with reduced spending power, but with an increased number of customers. Therefore, it is important that Olympus develops a strategy that includes the development of a business line that produces less expensive products.

Brand name recognition

Olympus is one of the most important brands on international level. Customers interested in purchasing the products that Olympus manufactures are aware of the company's performance, tradition, and technology. This is an important asset when addressing the international market. In a business segment with competitors like Canon and Nikon, it is important to rely on strong brand recognition. When purchasing higher priced products, customers are interested in addressing brands that are recognized internationally. Having a good reputation on this market is a strong point of Olympus.

Imaging business innovators

Olympus addresses an industry where innovation is very important. Technological advancements in the imaging and communication industries have made many important things possible. The interest that Olympus has in business segments the like imaging systems business, medical systems business, life sciences business, information and communication business, and others have helped the company make important innovations used in the medical field, but also in the communications business.

Brand visibility and marketing

When addressing the communication industry, it does not matter how good company's products are if they do not promote them accordingly. As some public Relations definitions states, it is important to have a good product, and to talk about it. And it seems that Olympus knows how to talk about its high quality products. In other words, the company has a marketing strategy that determines great visibility for Olympus. The different product lines the company offers, and the different customer segments they address determine Olympus to develop a differentiated marketing strategy.

In the case of mass consumer products, like cameras, the company focuses on television advertising, online and social media. The company also uses print ads. In the case of medical equipment, the company uses presentations, and Public Relations in order to attract customers interested in such products. It is important to develop a differentiated marketing strategy that can be applied to the different marketing objectives that Olympus intends to reach.

Weaknesses

In order to develop strategic recommendations it is important to also analyze the weaknesses of Olympus. All companies have weaknesses. Some people tend to think that large corporations have smaller problems. Large corporations usually have bigger problems in comparison with other companies. This is because they do business at a higher level that determines different objectives, and it requires higher level resources.

Reducing revenues

The most important weakness that Olympus must address is represented by its reducing incomes. The company was not able to maintain its average level of revenues, which can be observed from financial statements. This situation can be attributed to the environmental factors that determined the company to change its research and development strategy. The company was not entirely able to successfully address market requirements.

Low investors confidence in the business

Olympus is a company with numerous stakeholders. It is not interested in its customers only, but also in its investors. The importance of investors relies on the resources they provide to the company in order to reach its objectives. But they also want their investments returned. The shareholder theory states that the most important objective of companies is to maximize shareholders' profits. In addition to this, important strategic actions must also be approved by investors.

Product recalls

The company was forced to recall products from different product lines. Although many companies have recalled products, from automotive manufacturers to food producers, consumers tend to modify their opinion on companies that do so. When having products recalled, it means that they have flaws that the company could not identify before selling them to customers. This can determine some of the customers to think that the company does not invest much in verifying the quality of its products.

Opportunities

Successful companies rely on identifying opportunities and addressing them. Therefore, Olympus must have an increased focus on market opportunities that affect its business sectors. In the field of communication technological advancements determine frequent modifications. In order to maintain a strong position on the market, it is important that the company observes these modifications. In addition to this, customers' preference changes require the company to respond with innovative products.

Increasing customer spending on digital camera equipment

Innovations in the digital equipment business represent a strong opportunity that Olympus must address. Customers' interest in the benefits of using digital camera equipment determines increased spending on such items. This means that the company should focus on this business segment in order to increase sales and profits. This strategic action can determine increased investments in research and development. Such investments can be focused on innovating based on anticipating customers' needs and preferences.

International business development

Companies' success relies on several factors. Their ability to develop their business on international level is one of the most important factors that influence companies' success. Olympus started in Japan, expanded in Asia, and the U.S., and then to Europe and South American countries. The process of globalization has made it easier for large corporations to address the international environment. There are several approaches that companies like Olympus can use in their attempt to conquer markets abroad. They can merge with local companies, acquire local companies that already have an established brand and a strong customer base, or set up subsidiaries in countries of interest. In the case of Olympus the most successful strategy seems to be represented by exporting to different countries and establishing subsidiaries in some of these countries. This requires that the company establishes a strong relationship with local distributors.

There are different advantages and disadvantages in this case. The advantage of exporting instead of setting up subsidiaries is that it reduces costs. The disadvantage relies on the fact that it is more difficult to understand and control the market if the company does not establish subsidiaries. Olympus seems to understand these issues, and has established company branches in important regions of the world.

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