pelco surveillance in trouble
DESCRIPTION
One of the largest manufacturers of analogue surveillance cameras has been forced to cut its workforce by 4 percent.TRANSCRIPT
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Pelco Surveillance in trouble
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Christian Sandström holds a PhD from Chalmers University of Technology, Sweden. He writes and speaks about disruptive innovation and technological change.
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Pelco – one of the largest manufacturers of analogue CCTV cameras recently announced that around 4 percent of its
workforce will be laid off.
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The company had another minor layoff in late 2008.
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The industry is currently experiencing a shift from analogue to digital internet-based video surveillance.
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The shift means that a company like Pelco has to acquire plenty of new skills in order to sustain is position.
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With an analogue tradition, however, it is difficult to remain competitive when the competence base of
the industry is shifting.
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Pelco is therefore facing the challenge of transforming the company, while at the same time
having to coordinate layoffs and streamline its existing business.
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Shifts to digital technology tend to be fast and violent.
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New products quickly lose their value.
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So if Pelco manages to renew its business…
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… paradise is still not waiting for the company.
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On the contrary…
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… competition will be tougher than ever before.
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Acquiring new skills is not easy for an established firm, and it’s even more difficult if it has already been wounded.
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Is Pelco heading for the graveyard?
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Is Pelco heading for the graveyard? We’ll see.