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August 2020: 2020 Olympus Canceled

Hi Everyone,

I hope everyone is staying safe and Covid free. NHL hockey has started again here in Canada so we're all excited about that.

Adapting to an ever changing market is a challenge that each of us will face at some point in our business lives. If Darwin were alive today, he would likely say "it's not the strongest nor the most successful businesses that will thrive but those most adaptable to change". It's for this reason that strategy and strategic thinking are so important. We need to see further down the road and better anticipate and benefit from change because today those changes are coming faster than ever. While some businesses pay attention to this point and thrive others, sadly, ignore the evidence and hang on tight to what has worked so far and hope for the best. Olympus camera is a case in point.

Enjoy – Cam

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Volume 20 Newsletter 7

2020 Olympus Canceled

COVID-19 might have cancelled the 2020 Tokyo Olympic Games but the virus of complacency that's infected Olympus camera took a lot longer to dispatch its host. If you were ever into photography an Olympus was likely one of your first high end cameras. The quality of their lenses and modern features made Olympus a go to brand for any camera buff from skilled amateur to full time pro. But, like many camara companies, Olympus struggled with the switch to digital and then again with the leap to the ubiquity of the mobile phone camera. Watch any advertisement for a smart phone today and they won't even talk about the phone – only the quality of the camera. That said, as much as phones are now fully ensconced in the low end camera market it would be too easy to lay the blame the demise of Olympus solely on smart phones.

Olympus seemed to be emotionally invested in a technology called the 'micro four thirds' format used by many camera companies (including Sony) that relied on Sony to supply sensors. Sony itself, however, switched to a different technology for their video and camera lines and shifted their R&D focus away from improving the sensors required for the old format. With the R&D for the needed sensors stalled  there was a growing gap in image quality produced by companies, like Olympus, still using the 'four thirds' format and those that had moved on to the newer technologies. Olympus doubled down on the outmoded technology leading one author to write about the demise of Olympus saying, "Olympus dug in its heels and covered its ears…. Olympus became so set on doing things its own way that (it) wasn't able to create a product that people actually wanted to buy."

Nostalgia is a wonderful thing in the right context and indeed many companies have launched retro products but Olympus seemed bent on making an old product better, hoping their customers would return when the new technology didn't meet expectations. Unfortunately, when the market moves on and it's obviously not moving back, it's important to retool and re-build early and not dig in your heels. Caught between the superior picture algorithms developed by the phone companies and the superior picture quality of the high end competitor cameras, Olympus threw in the towel and announced they would sell their prized camera division in 2020. What can we learn from Olympus?

1. Proactively adapt to change: There is an old saying… "the time to start digging a well is before you're thirsty". Use the Six Pillars of Strategy to build your strategy for the future

2. Never get emotionally invested in a product: Emotionally invest in people, never in products or services, because everything must evolve and grow over time.

3. Listen to customers: Customers will always guide you if only you listen to them.

No one is immune to change – even an 84 year old company as prestigious as Olympus. As our economy struggles with COVID-19 what are you doing to ensure your company adapts to new market needs?