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Market for Digital Cameras in Europe - Essay Example

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Summary to essay on topic "Market for Digital Cameras in Europe"
Oligopolies can have very stable prices, because firms will often favor non-price competition. They may seek to expand their market share on the strength of design or advertising. There may be tacit agreement, with no price cuts but intense efforts to promote products in other ways.
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Download file "Market for Digital Cameras in Europe" to see previous pages... Then competition is reduced and a return to tacit agreement is likely. Petrol provides occasional examples of price wars.
Interdependent behavior is an important feature of oligopoly, because the small number of competing firms watch each other closely, devising strategies which take into account the likely reaction of the others.
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Digital camera market has been growing phenomenally since last 10 years. According to a news report published in ZDNet UK, the sales of digital camera had doubled in the year 2003 on a global scale. A Japanese industry group claimed that Europe was ahead of Japan and the United States of America (USA) in terms of revenues and sales both. (Munir Kotadia, 2003)
The Camera and Imaging Products association (CIPA) had revealed that 13.4 million units were shipped globally in the year 2003, with a year-on-year 93% growth. Out of these 13.4 million units, Europe received the most, that is 4.57 million units. This was 20% more than the shipments received by the USA and amounted to 3.82 million units. Japan snapped 3.08 million units. (Munir Kotadia, 2003)
Research also reveals that for the first time, sales of digital cameras had exceeded those of film cameras in the year 2002. 23.6 million film-based cameras were sold in 2002 while sales of digital cameras amounted to 24.5 million. ...
Some oligopolies have a number of large competitors, as with Coca Cola and other major soft drink suppliers, together with a large number of comparatively small suppliers which are price takers.
Global digital camera market
Digital camera market has been growing phenomenally since last 10 years. According to a news report published in ZDNet UK, the sales of digital camera had doubled in the year 2003 on a global scale. A Japanese industry group claimed that Europe was ahead of Japan and the United States of America (USA) in terms of revenues and sales both. (Munir Kotadia, 2003)
The Camera and Imaging Products association (CIPA) had revealed that 13.4 million units were shipped globally in the year 2003, with a year-on-year 93% growth. Out of these 13.4 million units, Europe received the most, that is 4.57 million units. This was 20% more than the shipments received by the USA and amounted to 3.82 million units. Japan snapped 3.08 million units. (Munir Kotadia, 2003)
Research also reveals that for the first time, sales of digital cameras had exceeded those of film cameras in the year 2002. 23.6 million film-based cameras were sold in 2002 while sales of digital cameras amounted to 24.5 million. Initially this gap was only marginal, but with the passing years, the gap has only been widening. With 80% to 90% penetration, the digital camera market has now reached the saturation point in Europe, US, and Japan. This is to mean that 9 out of every 10 consumers own a digital camera. (Munir Kotadia, 2003 and Coco Masters, 2009)
The boom in phone and digital camera markets has given Europe the lead over US in these two technological grounds. Miss Carolina Milanesi, a Gartner analyst, had commented back then that consumers in US were still in the process of getting familiar ...Download file "Market for Digital Cameras in Europe" to see next pagesRead More
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