Is vintage the latest fashion? It seems like old style has taken over a large portion of the market. This latest trend is the major trigger in Polaroid’s returning popularity. On September 23, Polaroid released ‘The Cube’, a small, cost-friendly HD action-video camera. Despite its lack of some features, this pioneering gadget leans more towards convenience, thus targeting a broader market. Simultaneously, this decrease in features is expected as the device is sold for half the price of a regular action-camera, such as the notorious Go Pro. What could this mean for Go Pro? Sales for Go Pro could definitely fall since potential customers who are not willing to pay as much money will turn to Polaroid. GoPro focuses on quality, while ‘The Cube’ focuses on convenience. ‘The Cube’, sold for $99, is aimed towards people who want to document their everyday lifestyle.
My analysis shows that by focusing on lowering price instead of the product’s quality, Polaroid is applying the Cost Leadership Strategy, as argued by Michael Porter. Porter claims that when a firm is known for being the low cost producer in the industry, it is applying the Cost Leadership Strategy. This essentially means that if Polaroid manages to thrive in the action-camera market, it will be able to remain profitable for a long time.
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