bronica, disruptive innovation and digital imaging

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RIP Bronica

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Why Bronica went out of business in 2004.

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Page 1: Bronica, Disruptive Innovation and Digital Imaging

RIP Bronica

Page 2: Bronica, Disruptive Innovation and Digital Imaging
Page 3: Bronica, Disruptive Innovation and Digital Imaging

Bronica usedto be one of

the dominant players in the

medium format

segment of the cameraindustry.

Page 4: Bronica, Disruptive Innovation and Digital Imaging
Page 5: Bronica, Disruptive Innovation and Digital Imaging

The cameras were mostly used for wedding, studio and portrait photography.

Page 6: Bronica, Disruptive Innovation and Digital Imaging

Bronica died in 2004.

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"Since the advent of digital photography, medium format sales have declined at a rapid pace. Imports today are just a

fraction of what they were even two years ago“

// Mr. Takashi Inoue, president of Tamron USA (Tamron owned

Bronica)

Page 8: Bronica, Disruptive Innovation and Digital Imaging

"For Bronica, that slip has been faster since our core customer

base, portrait and wedding photographers, has adapted well

to digital SLR equipment."

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Page 10: Bronica, Disruptive Innovation and Digital Imaging

"These photographers are now providing customers with a

quality and cost-efficient product that has virtually eliminated their need for the higher quality results that medium format film or digital

backs can provide“

// Stacie Errera, Chief Marketing Officer

Page 11: Bronica, Disruptive Innovation and Digital Imaging
Page 12: Bronica, Disruptive Innovation and Digital Imaging

"While some customers are faithful to the format, the current

sales volume and devastating purchasing forecasts cannot

sustain the production of BronicaSLR products."

Page 13: Bronica, Disruptive Innovation and Digital Imaging

“I believe we all understand the issues at hand when it comes to the business of

medium format. We have been struggling to find the best possible solution for the

medium format camera business under the Bronica brand, but after careful study and the comprehensive consideration of the

market situation, we have concluded that there is no other choice but to end this

business.”

// Kenji Nakagawa, Sales Manager of Tamron

Page 14: Bronica, Disruptive Innovation and Digital Imaging
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The last model, the BronicaRF645 was terminated in 2005,

only a few years after it had been launched.

Page 16: Bronica, Disruptive Innovation and Digital Imaging

Whathappened to

Bronica?

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Page 18: Bronica, Disruptive Innovation and Digital Imaging

Bronica first appeared in 1958 and became an

immediate success.

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Page 20: Bronica, Disruptive Innovation and Digital Imaging

While some people claimed that Bronica was just a cheap copy of Hasselblad, the cameras actually

had unique features and werevery appreciated by wedding and

portrait photographers.

Page 21: Bronica, Disruptive Innovation and Digital Imaging

Well, the Hasselblad

and the Bronica are

rathersimilar, at

least in theirlooks…

Page 22: Bronica, Disruptive Innovation and Digital Imaging
Page 23: Bronica, Disruptive Innovation and Digital Imaging

Just like the Hasselblad system, Bronica had a great advantage in the complete flexibility in terms

of changing lenses, film magazines etc.

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Bronica later on developed theirown lenses as well and thusobtained a strong knowledge

base in optics.

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Page 26: Bronica, Disruptive Innovation and Digital Imaging

This may be one reason whyTamron acquired

Bronica in July 1995.

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Page 28: Bronica, Disruptive Innovation and Digital Imaging

Tamron is a Japanese company, manufacturing lenses and optical componentes for

industrial and commercial use.

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Sony is a major shareholder in the company

and the firm has helped Sony to

gain market shares in the

cameraindustry.

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Page 33: Bronica, Disruptive Innovation and Digital Imaging
Page 34: Bronica, Disruptive Innovation and Digital Imaging

Having a foothold in the camerabusiness and a strong brand like

Bronica seemed like a good idea to Tamron.

Page 35: Bronica, Disruptive Innovation and Digital Imaging

Pity that this was going to happen.

0

5

10

15

20

25

30

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Number of film and digital cameras sold in the United States

Page 36: Bronica, Disruptive Innovation and Digital Imaging

Before the revolution, digital imaging actually prospered in

Bronica’s camera segment.

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’Digital Backs’ could be attachedto medium format cameras from

the early 1990s and on.

Page 38: Bronica, Disruptive Innovation and Digital Imaging

These backs were mostlyprovided by firms with

little past experience in the camera business.

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Leaf…

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Imacon…

Page 43: Bronica, Disruptive Innovation and Digital Imaging

Phase One…

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Page 45: Bronica, Disruptive Innovation and Digital Imaging

Kodak alsodeveloped

some digital backs…

Page 47: Bronica, Disruptive Innovation and Digital Imaging

In the beginning, digital imaging did not pose a threat

to Bronica or any of the medium format players.

Page 48: Bronica, Disruptive Innovation and Digital Imaging

It was rather an add-on, which increased the value of

medium format camerascompared to SLR cameras.

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It looked like this.

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Page 51: Bronica, Disruptive Innovation and Digital Imaging

Yes, big and bulky.

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The photographer coulddecide whether to be digital

or to use film by simplyremoving the film magazineand instead attach a digital

back to the camera.

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But the solution with a digital back was inconvenient, heavy and expensive.

Page 54: Bronica, Disruptive Innovation and Digital Imaging

The Nikon D1 from 1999 was the first true alternative for photographerswho wanted only a digital camera.

Page 55: Bronica, Disruptive Innovation and Digital Imaging

From this point and on, Canon and Nikon launched digital SLR

cameras that got better and better at a furious pace.

Page 56: Bronica, Disruptive Innovation and Digital Imaging

Within a few years, the SLR cameras were much cheaper, lighter and more convenient

than the digital back solution.

Page 57: Bronica, Disruptive Innovation and Digital Imaging

"These photographers are now providing customers with a

quality and cost-efficient product that has virtually eliminated their need for the higher quality results that medium format film or digital

backs can provide“

// Stacie Errera, Chief Marketing Officer

Page 58: Bronica, Disruptive Innovation and Digital Imaging

Needles to say, Bronica’s revenuescollapsed in 2000-2004.

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Tamron knew about optics and Bronica was based upon optics

and precise mechanics.

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Page 61: Bronica, Disruptive Innovation and Digital Imaging

Thus, the company had no competence in electronics and

had to rely on the solution with a digital back that was

manufactured by someone else.

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Page 63: Bronica, Disruptive Innovation and Digital Imaging

Bronica was trapped, and therewas no way out of it.

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Page 65: Bronica, Disruptive Innovation and Digital Imaging

Their last model, the BronicaRF645 suffered from the same problem and was terminated in

2005, only a few years after it had been launched.

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Did Bronica have anychance to survive?

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MaybeTamron didn’t

invest as much as they

needed to keep it alive

and execute a digital

strategy.

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Hasselblad survived by collaborating with Fuji and

thereby develop a new camerasystem. Once this system was in

place, it was natural to mergewith Imacon, one of the

manufacturers of digital backs.

Page 71: Bronica, Disruptive Innovation and Digital Imaging
Page 72: Bronica, Disruptive Innovation and Digital Imaging

Maybe this solution could havekept the business running for a bit longer in the Bronica case,

who knows.

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Page 74: Bronica, Disruptive Innovation and Digital Imaging

But the medium format segment would still have been very

competitive and shrinking every year.

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And fighting the SLR battle with Canon and Nikon can not be

regarded as a real alternative.

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The Bronica cameras createdfantastic memories for peopleall around the world for more

than 40 years.

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Page 78: Bronica, Disruptive Innovation and Digital Imaging

Bronica is gone now.

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Page 80: Bronica, Disruptive Innovation and Digital Imaging

Image attributions

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Page 82: Bronica, Disruptive Innovation and Digital Imaging

Christian Sandström is a PhD student at Chalmers

University of Technology in Gothenburg, Sweden. He writes and speaks about disruptive innovation and

technological change.

[email protected]