Fuji Film SWOT and PEST Analysis Essay
The company profile
Fuji film which is also known as the Fuji film holdings is Japanese based company that is globally known for its cameras as well as its photographic films. The company is the largest in imaging and also photography worldwide. The company operates over 200 subsidiary companies for its research and also for the distribution and the manufacturing of its products in the European, Asian and the American continents.
Similarly the Fuji film holdings corporation produces some computer media storage devices such as the CDD ROMs and also the recordable DVDs. The company’s camera has very distinctive boxes that are green in colour and this makes it to be re-branded as its own label film. On the other hand the company’s products have very distinctive features. (John Thompson & Frank Martin 2005)
The company’s products
The company’s products include;
- The Fuji chrome slide films which are colour reversal
- The Fuji colour negative films which are printable
- The fine pix series of the compatible digital cameras
- The Fujinon lenses which are the most widely used lenses in the televisions.
- The photographic paper
- The inkjet printer paper
- The magnetic media
- Mini-lab equipments
- Digital x-ray devices.
The Porters Five Forces Analysis of the Fuji film holdings
Porters 5 forces
- Rivalry among the competing sellers
In the industry there is a very strong force since the Fuji film holdings corporation competitors use the price cuts in their competition and there is also a low cost and an ease to the switching brand. Thus the companies in this industry diversify and also acquire other companies for their strategic growth as well as synergy. The company strives for a competitive advantage over its rivals in the industry.
The rivalry which exists between Fuji Film Corporation and the other firms in the industry is very high since there is plenty of counter response when the company acts in a particular way. The company employs the following competitive moves so that it can have an advantage over its rivals. First and foremost it changes its prices to suit the consumer’s purchasing power and this enables the company to have a temporary advantage over the other rivalry firms. Similarly the company makes further improvements in its products differentiation and it also maintains good relationships with the suppliers of the raw materials. (Johnson & Scholes, 2002)
- Competitive force of the potential entry
In the industry this is a very strong force since the Fuji film holdings corporation has strong brand images and this makes it very hard for the new entrants. The initial capital expenditures are very huge and the exiting companies are achieving their economies of scale by being global. Another threatening factor to the potential new entrants is the trade tariffs as well as the international regulations whereby they have to prove themselves to the foreign companies, customers and also suppliers.
- Competitive pressures of the substitute products
In the industry the substitute products belong to the other firms in the industry. The company is highly affected by the price changes in the substitute products in the rival companies. Since the more the substitute products become available to the consumers then the demand of the products from the Fuji film holdings corporation become more elastic. This further allows the consumers to have more alternatives in the market.
However this is a moderate but weak force in the industry since the businesses and also individuals wish to use other cheaper food products. A close substitute product in the industry further constraints the company’s ability to raise its prices. On the other hand there is a lot of price competition in the industry especially in the film and photography substitutes. Most of the consumers in the Fuji film holdings corporation consider the suitability as well as the performance value and also the convenience of the company’s products which they are purchasing.
- The power of the suppliers
This is a very strong force especially since the suppliers serve the photography industry. The Fuji film holdings corporation requires the food supplies and other food raw materials. This has further led to the company creating very solid relationships with its raw materials suppliers and also the other firms which provide the company with the required production materials. Since the company’s suppliers are powerful they exert a lot of influence in the industry. On the other hand the company’s suppliers are concentrated and they also have powerful customers.
- The power of the buyers
On the other hand this is a very moderate force in this industry since the existing competition keeps the prices similar amongst all the other companies in the food industry. However the only difference is that companies such as the Fuji film holdings corporation t have value added products which allow for a higher price. The customers have a very high impact in the industry since their buying power is very strong. The company also has a few buyers who have a significant market share and they purchase a very significant proportion of the company’s food products.
The SWOT analysis for the Fuji film holdings
Even though the markets for the fujifim holdings corporation have been declining, the company has been able to survive in the industry since it has several internal strengths. These include the availability of financial reserves which the company uses in times of crises. Similarly the company has a very good reputation and corporate image in the market place. On the other hand the company has profitable patents and also an access to a variety of resources in the market places. The Fuji film holdings corporation has a positive financial record as well as unique technology that keep it way ahead of its rivals.
The company’s infrastructure has been ageing over the years and the company has also has been going through some instabilities in the leadership management segment. Unfortunately, this company that had formerly been able to stand the test of time has also been having some financial difficulties which have been coupled with some scandals on ethical issues and also some pending law suites. Similarly the company has also been experiencing a flawed distribution of its products and it is also being faced with the challenge of an outdated technology in comparison to its competitors.
There is still a lot of hope for the Fuji film holdings corporation since there are several opportunities which have given the company a chance to rise to its former glory. The consumers in the market place are much unfulfilled in their consumer needs. Thus the Fuji film holdings corporation can meet the needs of the unfulfilled consumer needs in the market by providing products which are more innovative. Similarly the tight regulations which had been instigated over the years in the company’s global markets, been loosened and therefore the company can thrive to expand and broaden its markets.
On the other hand the shifts in the company’s demographics further create a larger market where the Fuji film holdings can effectively compete in. in addition to this there are modern innovations which are now readily available and they can enhance the quality and also the distribution of the company’s products. Moreover there are possibilities of the company to have mergers and joint ventures with the more potential companies that as this will bring the company back to its profitability levels in the industry. (Michael Porter 2004)
The company is being faced by major threats and there are efforts which are necessary for converting these threats into strengths. First and foremost the company has been facing very new consumer tastes and preferences for which the new rival companies are also trying to meet. On the other hand the presence of substitute goods in the market which is caused by the emergence of new producers has threatened the future of the Fuji film holdings corporation.
Moreover because of the economy there has been a reduction in the consumer buying power and the financial position of the company. Similarly the new product regulations have brought restrictions to the Fuji film holdings corporation. The shift in the workforce has not been working well for the company. If the employees who form a very important source of human capital are not very productive as per the company’s expectations and standards this can result to very massive losses.
The PESTLE analysis for the Fuji film holdings
A PESTLE analysis is used by the company in analyzing the company’s external business environment. This analysis involves the basic understanding of the organization’s political, economic, social and technological environments and this is in reference to the company’s business partners. (Paul Finlay, 2000)
The political factors may have a direct or even an indirect effect on the performance of the company. Some of the decisions which are made by the Japanese government have had a negative impact on the operations of the Fuji film holdings corporations. For instance the copy right laws by government vary in different countries in which the company operates in especially in the international markets.
This has limited the operations of the company in the production and distribution of its products globally. On the other hand such regulations which limit the prohibition of illegal infringement of the company’s copyright on its products affect the company’s growth.
Economical and environmental factors
All the businesses in the industry are affected by the economic factors. These effects are mainly on the company’s fiscal policy rates, interest rate policies, currency exchange rates, consumer factors, etc. The current economic trends in many countries that the company is operating are very positive. For instance china which is one of the company’s major markets is experiencing a high economic growth which is encouraging for the company’s businesses. Economic status in Japan also remains favourable. Thus, the consumers are bound to spend more on services offered by the company. It is possible that the Japanese economic climate tends to dictate how the consumer behaves in the society. (Bod De Wit & Ron Meyer, 2005)
If an economy is booming, recessing or recovering, the confidence of the consumer will automatically change. Forces within the society such as media, family and friends have affected the way the Fuji film holdings corporation markets its products in the wider markets. Currently, many people are becoming aware of the importance of photography and the trend has continued to increase.
Photography and imaging is growing daily and the companies which are offering these services are witnessing increased business rates. This means that companies such as the Fuji film holdings corporation have benefited heavily. Social factors affect our attitude, opinions and interests on the way we view products from certain companies. (Robert M. Grant 2007)
The way the Fuji film holdings corporation operates its business has changed as technology changes. Technology in the photography and imaging industry has continued to improve daily, there is always something new in the industry, this improvements and advancements have encourage more people to use the company’s products. Similarly the company’s products are innovative enough to meet the new markets and extend its global outreach. It has had a profound impact on the marketing mix strategies of many organizations. Business should keep in touch with changing technology and modernization in this ever changing world. The development of digital cameras and
The company’s external factors are expressed by the trade and tariffs restrictions as well as the political instability of the company’s location. Similarly they include the tax policies, the environmental regulations as well as the company’s environmental regulations. Read Royal Dutch Shell PESTLE analysis
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John Thompson & Frank Martin (2005): Strategic management (Awareness and Change) 5th Ed, Thomson, Publications 2005
Johnson & Scholes (2002): Explaining Corporate Strategy 6th Ed, Prentice Hall
Michael Porter. (2004): Competitive Strategy Free press 2004
Robert M. Grant (2007): Contemporary Strategy Analysis 6th Ed, Blackwell Publishing 2008
Bod De Wit & Ron Meyer (2005): Strategy Synthesis (Concise version), Thompson, Publishing
Paul Finlay. (2000): Strategy Management: an introduction to Business and Corporate Strategy, Prentice Hall