Boralens Camera Case Study

BoralensCamera Case Study


BoralensCamera case study

BoralensCamera is a cameras production company that has been in operation forover five years. The company assembles all its cameras and ships themto a major retailer from around the globe, which includes electronicstores, camera shops, and online electronics retailers from acrossthe globe. The company has established regional offices in differentparts of the world making sure they have teams to deal with thecompany’s sales and promotional efforts across all continents wherethey have a presence. The different retail outlets strive to keepdifferent camera models in stock to serve the interests of thedifferent customers. Considering there are other companies in themarket deal in the same line of business, Boralens has established astable business plan to ensure it has a competitive advantage overits rivals ensuring its survival. Thus, this paper aims at looking atthe different business strategies employed by Boralens in itsoperations across the globe.

CompetitiveAdvantage Strategies

Boralensputs forth a competitive effort based on Multi-level Camera- Afocused differentiation strategy in trying to capitalize on theever-growing in the digital camera technology ensuring its line ofcameras is appealing to the consumers. Thus, the company keepsupdating the different styles in the camera body, housings, andupgrading the software used by the different cameras. In addition,the company tries to make its cameras appealing than those producedby rival companies. However, despite all this efforts, the company’sthe sales volumes are affected by the prices set for the sale ofdifferent cameras to the retail dealers, the company also incursadvertisement expenditure, size price discounts offered to retaildealers, brand images and reputation in form of warranty periods, andtechnical support offered to consumers. All these factors call forthe company to setup a competitive strategy that it deploys to ensureits survival in the market, thus, below are five strategies employedby the company in line with Porter (2008).

  1. New entry threats for both entry and multi-featured cameras

Withother competitive factors being equal, that is, the cameras’performance quality ratings, level of advertising, model selection,and special promotions, the more the company’s wholesale prices inthe specific geographic region exceed the geographical industryaverage, the more that camera shoppers in particular region beinclined to shift their purchases to brands with lower prices. Stillin a similar fashion, changing the wholesale prices that are belowthat particular market’s average price, it will raise the company’spotential to have an above average sale in units (Paetzold,2009).

Nevertheless,should effects of a lower price are canceled by low performancerating, a presences of few models for buyers to choose from,insufficient advertising, few retail outlets having the product ondisplay, and other factors that may matter to the buy. However, thecompany keeps in mind that pricing is a much bigger factor at theentry level segment than it is in the multi featured segment, usersof the multi-featured cameras will focus more on the picture qualitythan on the price.

Aboveaverage prices for either entry levels or multi-featured cameras areparticularly offset by the use of a higher performance quality ratingon them, a hyped advertising, additional special promotions, bearingattractive discounts ones with regular prices, and offering longerwarranties. Notably, the higher a company’s wholesale prices areset above the industry’s average, the harder it get to usenon-price baits in overcoming a raising buyer resistance of higherretail prices. Equally, the lower the company’s wholesale pricesare below the average price in the market, the easier it is for thecompany to deal with issues related to poor ratings in a productsperformance quality.

  1. Bargaining Power of Buyers

Thebargaining power of buyers is met with the level of the company’sproducts performance quality ratings. A bigger percentage of theglobal digital camera users depend on performance quality ratingdeveloped by the World digital camera federation. The set rankingsare issued in forms of stars with the lowest being half a star to thehighest being 5 stars. Boralens in its production and researches itensures its camera meet high rankings in the quality of the camera’scomponents, that is, it has a good image resolution, a reasonable LCDscreen display, good lens capacities in terms of zoom capacities,good shape, and availability of additional accessories such as amemory card, rechargeable battery, and a charger. In addition, thecompany endeavors to add the number add on the products informationthe number of hours spent in research by the company’s engineersand designers (Paetzold,2009).

  1. Dealing with threats from substitute products

Apartfrom ensuring the product has high ranking in its performance qualityrankings, they ensure that it has an increased number of specialpromotions. This way the company is able to interest the retailensuring they stock Boralens cameras. In addition, the length ofspecial promotions is increased on Boralens products allowingconsumers more time to purchasing and giving them a competitive edgeover their competition.

  1. Bargaining Power of Suppliers

Thecompany has come up with strategies of benefiting from the bargainingpower of its distributors by offering them special promotions. Thediscount size of the regular price isa key aspect in thedetermination of the effectiveness of any special promotion given toretailers. The company’s special promotions range from 15% to 20%off on the regular price, which gives the company bigger gains insales volumes in a promotion offering 5 to 10% discounts.

  1. Dealing with Rivalry Among Existing Competitors

Thecompany produces an above average number of models of cameras itoffers the consumers to select from. This way Boralens enhances thecompany’s competitive advantage in the market by providing a wideassortment of cameras to the buy to select from. This translates tothe fact that the buy will easy find a camera that best suits theirpreference. It should be noted that companies with relatively fewmodels to select from, risk losing their sales and market share totheir competition. In addition, the company sales team ensures thecompany has a high number of outlets for their products since havinga higher number of retailers sell your product is better that fewoutlets due to the added the added display exposure. In addition,this gives the consumer more confidence in the company since they canget the brand in many locations.

Thecompany also faces off the threat of competitors by offering alengthier manufacturer’s warranty. This is because consumers findproducts with longer durations on their warranties more appealing,thus, the company is able to generate high units of sales by offeringlonger warranties. Finally, Boralens camera have been able attain ahigh reputation among the buyers and retailers. This has enabled thecompany’s products to capture a sizable market across the globe.

Strategiesto Improve the Company’s Market Standing and Financial Performance

Withthe five competitive strategies of determining in place, managersturned to crafting strategies that were capable of producing goodprofits and returns of investments making sure the company remainedconnected to the global market. The managers shifted attention tolocal camera stores and online retailers are more likely to sell theweaker-selling brands if their performance quality (p/q) ratings arehigh. This way they pursue a competitive advantage, aimed at havinglower cost, and selling their products at lower prices than those ofrival companies. This way they ensured higher volumes in sales, thatbrought with it better facial performance (Orlitzky, 2003).

Boralensintroduced interchangeable lenses, smaller, studier that put thecompany and its products on a higher level compared to itscompetition (Orlitzky and Rynes, 2003). The company ensured this byhaving higher specs for their products, which included, higherperformance quality ratings, an assortment of models for consumers toselect from, and hyped marketing efforts such higher advertisementlevels, longer warranties, and better promotional support, all aidingof the company’s market standing and financial performance.

Boralensinitiated women centric advertisements in different colors, providinghighly rated cameras with four stars, and they are available at lowerprices than other 4 stars cameras from rival companies. Through thisstrategy, the company increased its sales strengthening its financialstand. This enabled the company to focus on being the market leaderin both entry level cameras and multi-featured cameras.

Localcamera stores and online retailers sell multi featured and focus onbrand image, number, and length and price discounts of manufacturerpromotions. This way they focused the company’s competitive effortsin gain sales and wide market share (Orlitzky and Rynes, 2003). Thecompany increased efforts to gain market shares in both areas whereit had a strong geographical presence and in those areas it did nothave one. In so doing, the managers increased their sales andstrengthened the company’s financial stand.

StrategicApproach to Compete Geographically

“Thinkglobal, act local” the management empower local managers toincorporate country specific strategic variations to better satisfythe local wants and needs. This will counter actions of global rivalswith international responses and local rivals with local responses.The same strategy of differentiation is employed throughout all fourmarkets however, a focused differentiation strategy is utilized inthe Europe-Africa market.Inaddition, managers have ensured the driving factor behind the companyas a strategy in the marketplace is its competitive power in relationto countering the strategies of the competition. Hence thecombination all the competitive efforts, relative to the combinedindustry-average efforts, is the driver behind the company’s sales.Boralens have rather made sure the products compete at the same levelor are better than the competition’s product, ensuring it hasbetter performance quality rating and attractive promotionaldiscounts better than those offered by the competition.

TheCompany’s Decisions to Shift Resources

Thecompany took decisions to shit resources by lowering r&ampd costfrom entry level: 2,000 to 1,000 multi-feature: 4,000-5,000 in oneyear and raised the units assembled in the next year. Thejustification of these shits werestrategicin related battles in the competitive market, why in order tosucceed, you have to watch your rivals closely making sure youanticipate their next move and acting in a competitive manner tocounter the anticipated competitive strategy. In addition, In orderto anticipate the competitors’ next move, Boralens providescompetitive intelligence reports showing prior product prices, theirperformance quality ratings, and advertising for every company in theindustry. Referring to these reports the company has changestrategies by shifting resource to an area like research or intensivemarketing and promotions to counter the competitions strategyensuring the company’s products are priced and marketed in a waythat produces good company performance (Shankar&amp Carpenter, 2012).

CorporateSocial Responsibility Efforts

Thecorporate social responsibility and citizenship effort is a greeninitiative ranges at $4.64 per unit sold by the company, whichaccumulates to a high of around $12,692 dollars year. However, allthis is not in vain as the company’s image ratings have been on therise for instance from a 5 to a 9 in the next year. According toKlapperand Love (2004), thesespending are completely justifiable since the organization hasimproved its image, showing the consumers it cares about thecommunity and the environment and not just business. Thus, stakeholder ought understand the company’s competitive advantage isbuilt on a good image, earning trust from the people, hence,corporative spending is a vital part of promoting the brand name andexpanding the company’s sales of the future.

DecisionMaking Approach

Thecompany employs a consensus decision making approach whereby.Considering the company is global, the management uses an onlinemanagement platform where managers can login in their differentlocations and they can be engaged in entering decisions. Thecompany’s management site is able to indicate when a particularmanager was last on the site and what contribution he added to theforum. In addition, concurrent logins by managers in differentgeographical locations provides a platform that ensures continuedconnection and sharing of business strategy ideas. In decisionmaking, the widow allows you to have direct charts with othermanagers logged on, while at the same time you view the decisionscreen indicating agreed strategies. Where there is a new entry, thewidow gives the different managers in their different locationsnotifications and an opportunity to share in their views, thus,providing a platform to come up with consensus decision making.


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