Nikon Adapting to change Since 2008, the world has experienced shaky financial times, with the global recession impacting on many established brands. In this climate, Nikon continued to build and reinforce its products, based on a strong corporate structure, continued research and development and marketing. The company’s leadership saw the need to remain flexible to change, to be swift to respond to developments in technology and willing to follow evolving trends within the photographic industry. It focused closely on building efficiency throughout the organisation – from research, development and production to sales, marketing and customer service. Nikon, as an imaging company, was tasked by its leadership, in the last decade, to create a completely new way of enjoying images, while keeping a strong worldwide brand image. This image and Nikon’s core DNA is infused with strong values, a spirit of innovation, dynamism and fun – their philosophy being trustworthiness and creativity. Nikon was founded in July 1917. In that same year, it took over the development, manufacturing and sales operations of the optical measuring instruments division of Tokyo Keiki, the reflector division of Iwaki Glass, and the Fujii Optical Works. One of Nikon’s founding goals was the establishment of manufacturing technology for the optical glass used in instruments such as binoculars and telescopes, which did not exist in Japan at the time. In 1918, the year after the founding of the company, Nikon built a test furnace and began manufacturing optical glass, a process it has continued to this day. In the immediate aftermath of Japan’s defeat in World War II, camera manufacturing represented a new business venture for Nippon Kogaku Kogyo (present-day Nikon). The company put all its resources and efforts into manufacturing a consumer camera, as this was seen as key to the company’s survival. AMNM2605/102/1/2026 ‘camera committee’ (what would today be called a ‘project team’) was established, and a production plan was developed. Vision and objectives ‘Meeting needs. Exceeding expectations’ is Nikon’s vision for the future. This entails: ✲ providing customers with new value that exceeds their expectations ✲ sustaining growth through a break with the past and a passionate commitment by one and all ✲ maximising our understanding of light to lead the way towards transformation and a new future ✲ maintaining integrity in order to contribute to social prosperity. Nikon, therefore, implemented a policy to realise its aspirations, which consists of four key commitments. 1. To be pro-active. Being broad-minded and well informed in order to act quickly and resolutely 2. To seek new knowledge. Pioneering potential through self-study and insatiable curiosity Pioneers dedicated to research and development in laboratories or business fields are striving to open up a new world of technologies. Opto-electronics and precision form the very core of Nikon’s technologies. At its Core Technology Centre, Nikon focuses on the research and development of basic 3. To communicate well. To harmonise diverse skills by thinking out of the box and to communicate effectively with others 4. To display integrity. To work with diligence and sincerity as responsible individuals. Nikon’s imaging products: keeping Nikon at the forefront of imaging We live in an era of increasingly pervasive digital technology. Digital cameras are produced for a vast range of requirements, providing people with ever more opportunities to capture images. And consumers are constantly looking for attractive new features that capitalise on digital technology. Applying technology originally perfected for film cameras, Nikon now develops and markets digital cameras that are constantly being updated with new features through the application of digital imaging and network technologies. New product development is driven by raw feedback from customers and new features are developed as a result of requests and feedback received from customers across the globe, enabling Nikon to propose innovative ways to enjoy photographic images. Whether digital or film, Nikon cameras are for those who truly love photographs and they enhance people’s enjoyment of images in many significant ways. 6 7 technologies, specifically in the areas of optics, precision measurement and manufacturing, image processing, materials, and software and systems. Optics technologies Research in this category includes a focus on image formation, optical measurement and optical simulation technologies – all drawing on optics theory as a primary tool. Nikon’s unique theoretical approach delivers ground-breaking optics technologies. Image processing technologies Taking advantage of its optics technologies and the sophisticated applications derived from them, Nikon is able to continue developing image processing techniques that are unique to the company, including key digital camera technologies such as imaging processing advances that enhance image quality. Materials technologies In this field, Nikon is developing exclusive, innovative materials that play a vital role in the creation of new optics technologies. Software and system technologies Nikon’s engineers focus on research and development into software and system technologies related to optics, materials and precision processing. This helps in terms of enhancing product quality and in shortening the time required for product development. UESTION 2 (a) (b) Nikon plans to launch a new camera with enhanced quality and higher mega pixels. Using relevant practical examples, explain to Nikon’s management ANY SIX (6) key factors that affect diffusion of innovation and influence how quickly and widely a new product, like this camera, is adopted in the market. (6 marks are allocated for theory and 6 marks for your application of the factors to Nikon.) (12) Assume that Nikon was ranked as the second-best technology product manufacturer in South Africa in 2018. However, by 2024 online reviews are evenly split – 50% positive and 50% negative which could influence how customers perceive the Nikon brand. Distinguish between the THREE elements of perception and illustrate each element with an example based on the Nikon case study. (3 marks will be allocated for a theoretical discussion and 3 marks for your practical application of the elements to Nikon.)