Olympus: history, mythology, and cultural significance

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.

More growth potential in the high-end point-and-shoot and interchangeable lens camera sectors.

This business sector is developing and can present great potential to Olympus. The company has the resources and the technology to successfully address it. However, this requires increased investments in the research and development process.

Threats

When analyzing companies' internal and external environments, threats are as important as opportunities. It is important that companies identify threats to their business in order to develop strategies that can counteract them. The biggest business fails can be attributed to the fact that companies were unable to anticipate their threats.

Reduced number of suppliers

Regarding its raw materials, Olympus relies on a very reduced number of suppliers. This is a strong disadvantage in business management. If a company relies on few suppliers, these suppliers will dictate the rules in this relationship. They can impose the prices they want, the supply quantities they want, and the delivery schedule they want because they know their client depends on them. In order to reduce dependency on its suppliers, Olympus must increase the number of suppliers for its business.

Reduced investments in research and development

The lowering level of sales has also reduced Olympus' ability to invest in its research and development process. Innovation is an important factor that determines the success of companies in the imaging and communication industry (Greenfeld, 2012). Therefore, it is important to invest in developing new products that are able to address customers' changing needs and preferences.

Unfavorable conditions in Japan

These unfavorable conditions refer to natural and economic factors. The natural environment plays an important role in the way companies do business. Olympus cannot influence natural environment factors. Some of these factors cannot be anticipated, making it difficult for Olympus to develop a strategy in such conditions. Economic factors are also of great importance in their influence on Olympus' activity.

Camera phones

The development of the camera phones segment is an important threat to Olympus' activity. It is only normal that people's interest in Olympus' products would reduce because of the camera phones business. This means that Olympus must adapt to this trend and invest in producing such items.

Strategic Recommendations

Developing a flexible strategy

In order to improve its position on the market, Olympus must secure its current situation. This means that the company requires a flexible strategy in order to reach this objective. Flexible strategies allow companies to adapt to the effects of different environmental factors. In addition to this, a flexible strategy helps companies reduce the negative effects of such factors. In a globalized business environment flexible strategies are necessary. Natural environmental factors in Japan also require such a strategy.

Addressing the camera phones sector

The success of camera phones and the increasing demand for these products recommend that Olympus manufactures and sells them also. It is likely that customers' interest for digital cameras will not significantly increase in comparison with current levels. This means that if Olympus does not expand its range of products the companies' sales are also likely not to increase. Therefore, in order to increase its sales and profits, Olympus must develop products that are in demand. This mostly refers to camera phones, but also to other devices that can be used for taking pictures.

Increasing investments in research and development

In order to reach the objective of expanding its range of products, Olympus must increase investments in research and development activities (Bilton, 2012). Regarding the camera phones sector, the company has a great advantage in the fact that it is not difficult to gain know-how in this area. Research made by other companies can be very useful for Olympus. However, Olympus must invest in developing innovative technologies that can be applied to camera phones.

Increasing the number of suppliers

This is an important strategic action that can have a significant influence on Olympus' financial situation. Basically, by increasing its number of suppliers, Olympus reduces its dependence on them. In this case, Olympus can establish the rules of the relationship. It is Olympus that establishes prices, supply quantities, and delivery schedules. If a supplier does not accept the price level, or is in the position of not being able to deliver the material, the company can address other suppliers. In addition to this, by purchasing smaller quantities from an increased number of suppliers prevents the company's inventory of being affected by the relationship with suppliers.

Developing lower cost products

The telecommunications industry is approached by numerous products that are of low price levels. Their quality is not high, in accordance with prices. However, these products represent a great percentage of sales on the telecommunications market. This means that an important number of customers with reduced incomes are interested in purchasing such products. This is a market sector that Olympus does not address and that would be of significant impact on the company's financial situation. It is important that Olympus invests in producing such items at a low cost. This is intended to help the company increase its sales, but also to expand its business in other market segments.

Conclusions

Olympus Corporation is an important player on the imaging and communications market. However, the company's situation is not at its best. This can be attributed to some of the strategic decisions of its managers. Probably one of the most important factors that have determined this situation is represented by the fact that Olympus is not able to successfully address market changes.

The fact that an important number of customers are interested in purchasing camera phones instead of digital cameras is an issue that should be speculated by Olympus. In addition to this, the company should increase its focus on the benefits of the process of globalization. This refers to outsourcing some of its processes and activities to countries that are able to provide skilled workforce that can work for smaller salaries. This is intended to help the company reduce its production costs and reduce the prices of its products. This would also help Olympus increase its investments in the research and development process.