Page 13 - MCS August Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Key risks associated with each of these options are:

 Market penetration – industry statistics indicate a sharp decline in the sales digital still
cameras with January 2018 being the worse month on record with sales falling by 28% year‐
on‐year (Camera Imaging Products Association – (CIPA)). MONTEL must continue to
innovate and develop new products to meet the threat from new technology and the
relentless marketing of mobile phones. As such more detailed information is required to
facilitate these decisions which could be obtained by harnessing the benefits of “big data”.
To be complacent in this industry is not an option.
 Product development – in a similar vein to the above, manufacturers like MONTEL need to
enhance and embrace new technology to minimise the risk of trends or technological,
economic and social changes. Failure to do so could dramatically affect the long term future
of industry players such as MONTEL. The key risk in this context is having the competences
in place to do so.
 Market development – this would be a risk for MONTEL without a detailed understanding
of new markets or segments targeted. The risk may be greater given the slowdown in the
more traditional camera markets noted above. This may be mitigated to a degree given that
MONTEL will have gained knowledge by its representations in different countries e.g. Asia
and North and Central America.
 Diversification – the risk here lies with the lack of relevant skills, resources and
competences which is typical of diversification. MONTEL may need to consider different
expansion options to secure these skills such as acquisition or joint ventures e.g. to feed
changing technological and social needs. Despite a very positive cash position, these
options will be expensive and the availability and choice of funding will need more
investigation.

It will be vital therefore that each option be thoroughly evaluated before any action is taken to
develop and implement the strategy.

This will need both financial and non‐financial analysis and by the end of this process, the Board
will need to decide on a shortlist of options that will be carried forward to the strategic
implementation stage.

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