Nikon CorporationMcKenna Schuster

Katie Stare

Anna Ulliman

Kelley Wright

Agenda

1. Strategic Proposal

2. Company Analysis

3. Industry Analysis

4. Strategic Plan

5. Pro Formas

6. Timeline

7. Conclusion

Strategic Proposal

Develop two high resolution mobile phone

cameras, with the goal of becoming the

supplier of these cameras to Micromax

Informatics Limited.

Company Analysis

Nikon Overview

● Headquartered in Tokyo, Japan

● $1.00 = ¥118.6

● Generated more than ¥46.8B in Net Income FY14

● Operates in 3 different industries

Semiconductor Machinery Manufacturing

Optical Instrument and Lens Manufacturing

Photographic and Photocopying Equipment Manufacturing

Competitor Comparison

Industry Analysis

Photographic & Photocopying Equipment

Manufacturing Industry

● ~92% of Nikon's profits

● Industry in decline

● Shrinking revenue in the global digital camera market

● Cautionary indicator of future trends for company

Proposed Strategic Plans

1. Open 15 Nikon stores in the United States.

1. Divest the Instrument and Precision Equipment segments.

1. Develop two high resolution mobile phone cameras, with the goal of

becoming the supplier of these cameras to Micromax Informatics

Limited.

Strategic Plan

Major SWOT Factors

● Demand for compact digital cameras is in decline

● Photos taken using smartphones grew from 17% to 27% (2010-2011)

● Smartphone industry leaders using their own low-quality cameras

● Strong demand for cameras in India

● India projected to be #2 smartphone market in the world

Smartphone Usage Growth

SOURCE: IDC, The Wall Street Journal

Micromax Informatics Limited

● Second largest smartphone company in India

● Sold 23.2 million smartphones in FY 2014

● Bolt A Series, Canvas A Series, Canvas Turbo/Knight

● Expanding global presence

Dual Benefit

● Strong Competitive Advantage

● New market penetration for Nikon

● High quality cameras in Micromax phones

Implementation

Product Positioning Map (PPM)

Production Costs

● Producing 22 million cameras

● Total Production Costs: $394 million

Revenues

● Selling 22 million cameras to

Micromax

● Combined Revenues: $3.4 Billion

Net Income Increase

● Net income will increase by 39% in three years

Financing the Plan

● Funds available to implement strategy, no need for external financing

Timeline

Revenues

are

Decreasing

Nikon

Boosts R&D

Plant

Expansion

Contract with

Micromax

Sales of ~22M

Mobile Phones

Increases

Revenues

Keep up with

Technological

Trends

Constantly

Update

Contract

Potential to

Expand

Global Market

Strategic Plan

Implementation

Conclusion

We recommend Nikon Corporation develop two high

resolution mobile phone cameras, with the goal of

becoming the supplier of these cameras to Micromax

Informatics Limited.