Robert's Blog

Blackberry and camera companies have much in common; they were both once industry giants who have fallen due to new entrants and the threat of substitutes. In the past, camera companies never viewed smartphones as a threat as their quality was far superior to the smartphone. However, due to technological advances, the barriers of entry have been greatly lowered. The production of a high quality camera became much cheaper, and now smartphones dictate the industry. It is no longer about the hardware behind the camera, but the software. Smartphone software makes it easier to take pictures, which is a major competitive advantage over cameras. The industry has already adapted to smartphones, through apps such as Instagram which provides tremendous social presence and customization to users. Cameras are becoming obsolete, with global shipments of cameras falling by 36.2% in the second quarter of 2013 alone. The practicality and various features of a smartphone is enough to deter the average consumer away from cameras. As technology and support for smartphones will only continue to improve, it is inevitable that the camera will soon have only a niche market for professionals and true enthusiasts.

Sources:

1. http://business.financialpost.com/2013/10/05/point-shoot-collapse-why-big-camera-companies-are-the-next-blackberry/?__lsa=5844-f0be
2. http://www.nikon.com/about/ir/ir_library/ar/pdf/ar2013/13annual_e.pdf
3. http://www.quickmba.com/strategy/porter.shtml