Nikon Corporation is one of the leading companies in the world in the field of optics and imaging. It currently holds the second rank in the areas of photolithography and semiconductor fabrication. It is headquartered out of Tokyo, Japan. The company was founded on 25th July, 1917 when all three of the leading optical manufacturers clubbed their operations together to form the entity called as Nippon Togaku Tokyo KK.
Over the years, it was renamed as the Nikon. The growth of the company received a major fillip during the Second World War when it became the principal supplier to the Japanese Military. By, that point of time the company had registered huge profits and employed more than twenty three thousand people in nineteen factories.
Currently, the company is led by Michio Kariya and Makoto Kimura. As of the last quarter, the operating income of Nikon was pegged at 13.9 billion whereas the net income was estimated to be 12.6 billion. The company has been registering steady rise in profits with the last five years exhibiting triple growth in the digital camera market. Nikon currently employs around 26, 125 personnel throughout the world. Due to the changing dynamics in the world trade and economics, Nikon shifted most of its manufacturing facilities to Thailand.
This step was taken to leverage the lower cost of labour as well as to take advantage of the local tax and import laws. By, the end of 2010, the Ayuthaya factory in Thailand was responsible for the production of the spherical lens, spherical lens, prism process and the auto focus units. It is also responsible for the production of the zoom lenses as well as the other main lenses from the Nikkor line.
Nikon showcased a great degree of strategic thinking and lateral drift when it announced the closure of all its production units pertaining to film cameras. This step was necessitated because of the falling revenues in the film camera division and the increasing competition from the likes of Fuji, Sony and others. The current product line of Nikon comprises of F-mount cameras, the SB-200 units, the DX sensors, compact cameras, underwater cameras and SLR cameras with auto focus.
There has been an estimated increase of 13.5% in the net sales worldwide with the figures likely to show further increase. Keeping the market trends in perspective, it can be safely said that Nikon is here to stay.
[...] Later it improvised by double branding its products with a series as well as the sales name on. For example Zoom- Touch for wider zoom ranges, Lite-Touch for compact camera, etc. Ø Industry Outlook: Nikon did always preserve a firm pledge to the study of light through its company values, “Trustworthiness and Creativity”. However in the present times with the increased globalization of the organization, they have a lot more value to offer. To meet this requirement in the year 2007 the company came up with a new vision of creating a new Nikon with their aspirations not only to answer to the requirements of the clients but also to provide them with new value that goes beyond their expectations. [...]
[...] The results were that high contrast negatives with produced with sharp resolution. The introduction of the Nikon SP as well as other 1950s and 1960s rangefinder cameras proved to be a competition for the models of Leica and Zeiss. Later as the company stopped manufacturing the rangefinder line it saw success in the Nikon F single-lens cameras introduced in the year 1959. It was also used by the U.S. space program. In the year 1980, the company introduced its first photolithography equipment with the Nikon stepper, the NSR-1010G in Japan. [...]
[...] later in the year 1988, the company adopted its present name Nikon Corporation, after its cameras. It is one of the Mitsubishi Group of companies. The year 1948 saw the first Nikon-branded camera, the Nikon I. As regards the popularity of the Nikon lenses they were brought into the trend by David Douglas Duncan, the American photojournalist who came across these Nikon lenses through a Japanese photographer, Jun Miki during the Korean War in Tokyo. Later he used it at the time of Korean War. [...]
[...] About of the total sale of the company comes only from the Precision equipment as well as imaging products business ➢ The company has also faced consequence arising due to suspected infringement of competition laws which brought upon penalties and injured the image of the company as well Opportunity: ➢ The company is now looking forward toward online sales opportunities by concentrating towards the e-commerce market as well as efficiently using the marketing tools ➢ The company is also aiming towards increasing its presence in the international scenario ➢ Working towards offering more pioneering product for the consumers Threats: ➢ Constant technological developments ➢ Growing demand of superior camera phones as well as their social networking incorporation making possible effortless sharing of pictures ➢ Cutthroat struggle with black market as well as smuggled goods Competitors: ➢ Canon ➢ Casio ➢ Kodak ➢ Sony ➢ Pentax ➢ Panasonic ➢ Fujifilm ➢ Olympus Ø Peer Benchmarking & Future Outlook: NIKON CORPORATION Peer group Enterprise Value EV/EBITDA Relevance USD) mth Source: Nikon 2012 Annual Report(year ended March 31,2012) Ø Risks, challenges and Limitations: There are chances that the business of the company will be hampered considerably by many factors which are likely to arise in the future. Following are major issues which may be considered as risk factors in the business operations by the Group. • In the semiconductor industry has experienced some amount of easing in the recent years resulting to a greater variety in finished products. [...]
[...] This proved to be effective means of minimizing power consumption. Other than the environmental conservation act, the company also values human rights and work environment. The Nikon Corporation has taken initiative towards constructing a worldwide management organization for socially concerning matters like human rights as well as the environment in which they are working. To solve and to keep itself abreast with these issues the company's management system frequently carries out monitoring to realize the existing conditions as well as concerns which are being faced throughout the company. [...]
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