In our previous blog, we did a Detailed SWOT Analysis of Kodak. Here we will be doing an In-Depth SWOT Analysis of Nikon.
Nikon has been able to gain such large success in its industry with its remarkable marketing strategies. However, it lacks in improving its marketing with time. As we know most people nowadays are using online platforms, thus it is essential for every business to grow digitally. This can be possible with the use of digital marketing. If you are curious about learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us keen to know how Nikon has maintained a stable position in the market. To understand that we have given an In-Depth SWOT Analysis of Nikon. But before we start with its SWOT Analysis let us learn about Nikon as a Company, its products, competitors, financials, and more.
Nikon Inc. is a company that manages a group of related businesses which are mostly associated with photography or equipment. It was established on July 25, 1917. The company is headquartered in Tokyo, Japan and manufactures and sells imaging products, precision equipment, and instruments.
Nikon’s mission is to know what the customers want from imaging today and tomorrow and to empower them through images to realize their dreams. For Nikon, that means taking the lead in defining new value for the image and then delivering that value to the customer.
Nikon’s vision is unleashing the limitless possibilities of light. Striving to brighten the human experience. Focused, with purpose, on a better future for all.
|No. of Employees||20,190 (2020)|
|Market Cap||$2.31 Billion (2020)|
|Annual Revenue||$5.4 Billion (2020)|
|Net profit||$71 Million (2020)|
Products of Nikon
Nikon is one of the top names in its industry which caters to a large audience. Thus to keep them attracted to the company they provide them with different products. Following are some of the products that Nikon provides:
- camera lenses
- ophthalmic lenses
- measurement instruments
- rifle scopes
- spotting scopes
Close Competitors of Nikon
Nikon has to face large competition in its industry to retain its position in the market. Following are some of the top competitors of Nikon:
Now that we know about the company let us start with the SWOT Analysis of Nikon.
SWOT Analysis of Nikon
SWOT analysis is a technique for assessing four aspects of a business – strengths, weaknesses, opportunities, and threats. SWOT Analysis also helps a corporation or a brand to strategize consistently with the factors affecting its growth.
Let us start with its SWOT Analysis by first looking at the Strengths of Nikon.
Strengths of Nikon
Strengths are the factors that make Nikon stand out from the competitors in the market. Following are some of the strengths of Nikon:
- Core competencies – Nikon’s biggest strength lies within the main target they have on their core competency which is expertise in imaging technologies. Some of the competitors for Nikon include matrix metering and color recognition, optical VR, processing chain bandwidth amongst others.
- Focus on low-level problems – Rather than that specializing in the macro problems with the purchasers Nikon has always been watching grass-roots issues that customers face in photography and tried to address them. These customers are often either novices or professional photographers.
- The range of consumers – Nikon caters to an honest gamut of customers ranging from amateurs to professional photographers. They also produce lenses, sunglasses, and spectacles. The company also caters to commercial and industrial clients through its semiconductor business and scanners and printers.
- Good stakeholder relationships – Though not over the highest Nikon has always been focused on maintaining a positive relationship with its stakeholders. It also features a relentless commitment to society and is involved in numerous social activities like scholarship programs for underprivileged kids and assistance for conflict or calamity-stricken areas.
Weaknesses of Nikon
Weaknesses are areas where Nikon needs to improve in its business. Some key weaknesses of Nikon are as follows:
- The imbalance between engineering and customer feedback – Nikon has always been a robust engineering company specializing in research. They always check out issues and check out to unravel them but when it involves understanding the customer needs Nikon may be a failure.
- Low speed of innovation – Within the area where Nikon operated for a corporation to achieve success, it must have high innovation speed also as iteration speed. Nikon may be a marvel at the latter but slows within the former. Dependence on particular products and businesses.
- Failed to satisfy the mass market – Nikon caters more to the professional group than the mass market, and thus they need to be more successful with cameras that professionals want primarily because of their attention to detail. Thus, they cannot satisfy a market that may give them volumes but instead have to specialize in value.
- Low Ethics – Nikon has faced severe allegations for violation of competition laws that they have even been penalized and fined. This has caused a negative image of the corporate amongst its customers.
Opportunities for Nikon
Opportunities refer to those avenues in the business’s environment on which it can capitalize to increase its returns. Some opportunities for Nikon include:
- The high market potential for optical technologies – The optical technology business is predicted to grow, and new technologies are expected to require over the market especially in optical components. Nikon already features a strong research team working in this domain and can use this opportunity to its advantage. Expanding its presence in the global market is often an enormous opportunity for Nikon.
- Opportunities in medical imaging – Medical imaging is a growing opportunity for businesses in the imaging industry and there’ll be a surge in demands for equipment in medical imaging for support, diagnosis, research, and training.
Threats for Nikon
Threats are those factors within the environment that may be detrimental to the expansion of the business. Some threats for Nikon include:
- Increasing Competition – There is an increase in competition in the market as the competitors are bringing new technologies in the market and the demand for Nikon’s products reduces. The most competitors for Nikon are Canon, Casio, Kodak, Panasonic, and Olympus.
- Changing industry trends – The disruptive technology changes within the digital imaging sector are creating tons of threats for the companies engaged during this sector primarily due to the prices to be invested in research. Moreover, the period of products has reduced and there’s a robust likelihood that products get obsolete soon. The increasing demand for high-end camera phones and their networking integration facilitates the easy sharing of photos.
With this, we have reached the end of the SWOT Analysis of Nikon. This analysis helps the company to identify its position in the market and gives it a wide idea about it to frame proper strategies.
On the study of the SWOT Analysis of Nikon, we have known that it is one of the best camera brands in the world. It has its core competency in imaging technology and a large customer base in the market. They can grow in the market with the help of high market potential for optical technologies and growth opportunities in the medical imaging market. Even with such advantages, it has some flaws in the market which affect its growth.
It has an imbalance between engineering and customer feedback and its low ethics are some weaknesses in the market. The increase in competition and changing industry trends create a threat to the growth of Nikon. However, it can implement some advance digital marketing techniques in the market to improve its market stand in the global market. As most people use digital platforms it is easy for the business to target its customers. Thus digital marketing is important for every business. If you are interested in upskilling and learning, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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