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Re: [OM] Olympus class action

Subject: Re: [OM] Olympus class action
From: Ken Norton <image66@xxxxxxx>
Date: Mon, 01 Feb 1999 06:57:50 -0600
>The problem is _not_ that OM products aren't selling well. The problem
>is that Olympus doesn't give a damn. They haven't brought out a
>fundamentally new camera body since the OM-3 and OM-4, they have refused
>to broaden the system so that it might appeal to a wider range of
>photographers (eg, a pro auto-focus body and lenses), and, worst of all,
>they refuse to advertise the OM system -- to create the demand that's
>needed to keep the system alive.

...And on top of that, Olympus isn't even producing enough OM-3ti cameras
to supply a reasonable demand.  The dealers had been given an annual
maximum number of units that they could get.  Paul, what was it, 2 per
year?  Why should any dealer give them the time of day?

This reminds me of what happens in the retail industry--take Woolworths,
for example:  Sales started to decline, they didn't adapt the stores as
necessary, raised prices, shut down all un-profitable stores (80%) which
resulted in even less sales, eventually leading to the entire demise of the
Woolworth business unit.  Now Woolworths doesn't exist.  As an aside
though, Woolworths did invest in other specialty stores (Foot Locker?)
which became so successful as to shift the entire corporate structure and
name.

Anybody in the USA ever seen a Montgomery Wards recently?  Remember when
they right up there with Sears and JC Penneys?  Same story, they closed the
no profit and low profit stores and lost their entire market presence.

Sometimes, it is necessary in business, to have loss-leader products and
high-profile, low (or no) margin products.  Nikon, probably barely makes a
profit off the F5, but it is a key product that is used to sell lenses and
lower cost (but higher margins and more units sold) bodies and point&shoots.

Even Olympus had known this when they came out with the extremely
successful OM-10.  The OM-1 and OM-2 were the "high-profile" products,
whereas the OM-10 paid the bills and the dividends.

Ken
Kenneth E. Norton
Image66 Photography

image66@xxxxxxx
(515) 791-2306

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