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[OM] Re: The Latest Truth from Oly about the E-400

Subject: [OM] Re: The Latest Truth from Oly about the E-400
From: "khen lim" <castanet.xiosnetworks@xxxxxxxxx>
Date: Wed, 20 Sep 2006 04:46:27 +0800
On 20/09/06, Winsor Crosby <wincros@xxxxxxxxxxx> wrote:
>
>
> I had no idea that Olympus American was so independent of Olympus in
> Japan.


Olympus Imaging Corp's most powerful and visible subsidiaries are Olympus
America, Olympus U.K. and Olympus-Europe, which is in Germany.  There is
absolutely no doubt that of all these, it is Germany where Olympus is
remarkably strong, vibrant and extremely well represented and the
justification point is the number of German and Austrian pros using the E-1.
U.K. comes next after Germany and only then is Olympus America.
A substantial amount of research is done in Hamburg and has been for many
years now. I believe that even though I left Olympus in 1992, Germany continues
to play a vital role not only in development but also in market economics
for the company.
All these operate independently as "value centres" (internal Olympus
terminology) and they make their own decisions as to what products work in
their domestic market and what don't.

You would think that OJ would see this whole thing with
> dismay, especially the part about not having a camera in the US to
> compete with all the other 10MP competition.


No. Olympus Japan has no jurisdiction in America as far as domestic market
decision-making processes are concerned although if they really really want
to, they can step in. 99 out of 100 occasions, this does not happen;
otherwise there is no point in setting up independent operations in the US.

One could reason that OJ
> does not care whether it is an E-500 or E-400 that is sold, but as
> you point out the difference is as a competitor and lost sales to
> newer cameras because of the E-500 now and later lost sales because
> the E-400 will have newer competition when they start selling it
> here.




Plunging sales of Olympus should make them unhappy enough to do
> something about their US distribution I would think.


Olympus America is solely responsible for whatever happens in their market.
If they make the wrong tactical decision, they wear the costs. But of course
if things get too "hot under the collar," Japan may ask why. This has
happened before but not commonly so.

Winsor
> Long Beach, CA
> USA
>
>
> On Sep 19, 2006, at 12:38 PM, khen lim wrote:
>
> > This is why I believe that Olympus America's decision not to bring
> > the E-400
> > in fast is unavoidable but all the same, it is a tacttical mistake.
> > It has
> > shot itself in the foot. It cannot afford to have the E-400 eating
> > into the
> > E-500's intended pie. Bringing it in will spell potential disaster
> > for its
> > E-500 stockpile. Not bringing it in will mean the E-500 will
> > eventually
> > "canon fodder" (pun unintended) when facing an increasingly tougher
> > competition. Either way, Olympus America loses but the biggest
> > losers right
> > now are the consumers.
>
>
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-- 
Khen Lim
XIOS Network Solutions
IBM Business Partner
+60 +16 528 6010 / 016 528 6010


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