Strengths Weaknesses
1. 2012 sales up 3.5%, despite Thailand flooding. 1. The Board of Directors and Executive Officers
2. Annual cash dividend per share increased 19
JPY from 2011 to 2012.
3. Facebook presence of Nikon: 1,662,014 U.S.
“likes.”
4. Strong brand image – Nikon customers are
willing to pay more money for digital cameras
than any
other brand customers.
5. 2012 operating income up 48.2% - gain in
earnings contributed by Precision Equipment
segment.
6. First-movers in image sensor technology.
TOWS MATRIX 7. Launched first Android platform camera in the
industry for “smart cameras.”
NIKON CORPORATION 8. Nikon India has a 55% market share for DSLR
cameras.
9. From 2009, the Nikon imaging segment has
increased its total market share 9.5%.
10. For 2011, in the UK, Europe, and Japan, Nikon
had the best-selling DSLR camera and the best-
selling
compact camera (Nikon Coolpix S3100).
are not ethnically or gender diverse. All members
are
Japanese males.
2. Seven top executives (President, CFO, Finance
& Accounting, Instruments Co.) nearing
retirement
age; impending loss of tacit knowledge. Five of
these have been with Nikon since the 1970s.
3. The load time of images on company website
is slower than that of competitors Canon and
ASML.
4. Geographic sales are lumped into Europe,
China, Japan, the USA, and “other” making up
23.3% of
sales – these sales aren’t broken down to see the
next largest region(s).
5. No e-commerce option on Nikon website to
channel consumer and business purchasing.
6. The interest coverage ratio dropped
significantly from 128.0 to 14.2 (2011 to 2012
FY).
7. The Precision Equipment segment (27% of
company) and the Imaging segment (63.9% of
company)
make up 90.9% of share of sales.
8. In Switzerland, Nikon was fined 12.5 million
Swiss francs for using unlawful vertical
agreements
curbing parallel imports.
 9. Operating loss of 2.5 million JPY in the
Instruments segment – third year in a row of
operating loss.
10. The only digital camera manufacturing plant
is located in Thailand where flooding occurred.
Opportunities SO WO
1. Competitor Kodak is shutting down digital 1. Build one additional imaging manufacturing 1. Hire 2 new executives to sit on the Board of
camera production operations ($1.3 billion in plant outside of Thailand to increase sales. (S1, Directors, if available, the Kodak imaging
revenues O1). managers, to
for Kodak now available for the market to 2. Launch television campaign for 2012 in Middle create better diversity. (W1, W2, O1)
acquire). Kingdom of China. (S4, O7) 2. Increase R&D 20% for Instruments for
2. The health and medical field lack new devices 3. Partner with Samsung to release "Nikon" healthcare field to capitalize on need and
for inspection systems in diagnostics, and branded smartphone camera lens. (S7, O4, O9) diversify income.
products 4. Increase capacity output of semiconductor (W7, O2)
that contribute to the quality of life production machines by 5%. (S7, O4) 3. Create mobile application site to purchase
enhancement for the elderly. cameras through e-commerce. (W5, O9)
3. The semiconductor growth rate for 2013 is 4. Build one new manufacturing plant for DSLR
projected at 25%. equipment in Europe. (W10, O8)
4. IDC (International Data Corporation) projects a
27% compound annual growth rate for the
smartphone industry over the next 5 years.
5. Increased imaging interest in India: registered
110% unit growth for digital cameras and 200%
for
Digital SLR in first eight months of 2012.
6. Over the next 5 years, the DSLR segment in
India is expected to grow 40-50% year on year.
7. In the Middle Kingdom of China, 22% more
money is spent by the consumer to purchase a
digital
camera.
8. A worldwide trend is moving towards high-
quality cameras; 10X optical zoom cameras grew
27%
in sales in 2011 vs. a 16% decline in cameras
costing less than $200.
9. Mobile phones have spurred an interest in
photography and provide access to an expanded
community of consumers.
10. In the first 6 months of 2012, a 15% growth in
the interchangeable lens digital camera category
has been seen in 66 countries.
Threats ST WT
1. Potential natural disasters (flooding, 1. Cease imaging production in Thailand and 1. Divest Instruments segment and solicit Apple
earthquakes) to happen again in Thailand and switch operations to existing European investment for chip research and development
Japan. manufacturing plant. for
2. European market makes up 24.6% of sales, the (S1, T1) Precision Equipment segment. (W9, T5)
largest market. The European slowdown 2. Lower camera prices in East India by 5% to 2. Create a position for VP over global law to limit
affecting remain above Canon's price range. (S4, T6) lawsuits and infringements. (W8, T4, T10)
exports: 12% drop in Japanese exports to Europe. 3. Offer additional stock options for employees in 3. Limit imaging production capacity in Thailand,
3. Potential loss of employees with technological R&D as incentives to remain with Nikon. (S2,T3) and launch production site in existing European
expertise in regions with high labor mobility. 4. Eliminate use of conflict materials to keep plant.
4. Supply chain traceability auditing enacted into existing brand image and social responsibility. (W10, T1)
US law through Dodd-Frank Act; use of conflict (S4, T4) 4. Enhance training for upper management for
materials from Congo (tantalum, tin and the potential movement into executive positions
tungsten) must be traced through supply chain and to
for keep them at Nikon. (W2, T3, T6)
corporate transparency.
5. Samsung Electronics is investing $975 million
into ASML for next-generation chip-making
technology research to be conducted.
6. Increased competition in imaging – Canon
reduced camera prices in East India to capture
27%
market share.
7. Percent of total mobile phone users who took
photos using their phone: 52.4% (U.S), 57.5%
(Europe), & 62.9% (Japan). The technology gap
for picture resolution is closing between mobile
devices and digital cameras.
8. Canon launched its mirrorless camera to
compete with Nikon’s version; 100,000 cameras
per
month are being manufactured.
9. American’s spending on digital cameras
decreased 8.3% in 2011 from 2010.
10. In 2011, consumer electronics became the
most widely seized counterfeited items.