I recently had the opportunity to spend some time with Sigma global CEO Kazuto Yamaki during his visit to Kuala Lumpur for the dp0 Quattro launch, courtesy of regional distributors APD. What followed was a most interesting and candid discussion during which it became clear to me that he has a very adroit handle on things and a remarkable philosophy. I believe Sigma is going to be one of the companies that not just survives the market slowdown, but may well come out benefitting from it. Here’s why.
Today, a few tangential thoughts on photography and the overall state of marketing strategy these days. Yes, I’ve done a lot of this kind of work extensively in my previous life as a consultant, but guess what: most of it is really common sense. And sometimes it can be very difficult to see the wood from the trees if you’ve been lost in the forest for too long. I’ll start with two thoughts:
Have some stones and
Social media metrics are not an indicator of fiscal success.
This principles apply equally to both sides of the negotiating table.
Following the accounting scandal that saw former CEO Michael Woodford ousted, Olympus’ coffers were looking decidedly empty; at that point, many potential suitors were rumoured. It turned out that Sony was the one whose offer was accepted. In a share transfer and cash deal – completed about a month ago – Sony pumped US$645 million into the company, to hold a total of 11.5%. What’s more interesting is that on most of the major business sites, this wasn’t reported as a transaction to invest in the cameramaker; rather, Olympus was frequently referred to as a ‘world leader in medical imaging’.
Although photographers know and love Olympus as the manufacturer of various quirky cameras and small systems, the truth is that margins in the medical industry – anything with ‘surgical’ or ‘medical’ in its name means an extra couple of zeroes on the end of the price tag – are much, much higher than the camera business. Like Nikon, it’s been making a good chunk of its income from something other than cameras for a long time. (I don’t know how much it makes from dictaphones these days, though.)
I’m going to take off my photographer hat now and wear my analyst/ M&A/ consultant one, for a bit of change of pace. Let’s put the pieces together.
House near Strakhov Cloister, Prague. Olympus E-PM1, 45/1.8
The title of this shot is a bit of a red herring: yes, there is a snowflake, but no, it isn’t really visible at this size. What drew me to this scene was the balance of color; the simple geometry of house and sky; the texture of the tan wall and the two little details (visible in the full size shot) – the snowflake decorations in the window, and the moon hanging low in the early morning sky. I suspect this would make a great large print, but I haven’t had a chance to find out yet. MT