Abstract for: Analysing the Market Evolution and Strategy Implications of the DSLR Industry

The market of digital cameras is one of the most rapid changing consumer electronics market in recent years. The evolution of the digital camera industry and market is very complex, subject to the dynamic interactions among technology, consumer preferences, market competitions and the transitions of user populations. The dynamic nature of the industrial evolution makes the strategy making process difficult. This study analyzed the recent development trends of the DSLR(Digital Single-lens Reflex Camera) industry, and derived a system dynamics model based on the identified causal structure. The results show that the users of DSLR market could be classified as Professional, Semi-Professional and Beginners within each category the DSLR companies should carefully consider their pricing and product positioning strategy accordingly. This study also tested the derived model under two scenarios, and the results indicate that changing the revenue model of DSLR may increase the total revenue and the impact from the smartphones could be a severe threat to low-end digital cameras.