CEWE: BUSINESS MODEL INNOVATION- WHEN DISRUPTIVE TECHNOLOGIES HIT YOU Harvard Case Solution & Analysis

CEWE: BUSINESS MODEL INNOVATION- WHEN DISRUPTIVE TECHNOLOGIES HIT YOU Case Solution

1.     Define the perspectives of CEWE?

CEWE color stands for both Stability and modernization. Broad experience with workers and administration team, unceasingly high profit and dividend, and constant and adaptable growth led the company to be successful. As a cost and technology leader, the company has managed to develop the market position in the photo print industry considerably. Moreover, CEWE Color is considered as the marker leader of photofinishing in the European industry. Due to high success in Photo printing industry, the company on average generates about 40% of market share in fourteen European Countries as well as it has become the market leader of photo print in photofinishing industry.

2.     Define the profile of CEWE business model of innovation?

CEWE was founded by Heinz Neumuller in 1961. In the beginning of 20th Century, he observed that the company had great opportunities and potential of growth in the photofinishing industry. As a result of this, the company established an organization which provided a high-quality photo printing services to the customers. In order to achieve success in the photo printing industry,increasing profit and providing leisure time were considered as the two main factors through which the company can easily increase its profitability as well as it would be able to decrease the prices for photography, which would as a result, improve the performance of pocket cameras in the competitive market. On the other hand, the sales of camera increased and as well as the number of the pictures taken. By focusing on mass market insight, the company opened approximately 4000 m2 photofinishing laboratory that satisfies the demand of the market. Furthermore, the company acquired about 13 laboratories in the European market as well as it renovated the German family company into a global player.

The Market position of CEWE was agitated with the change of the market and adaptations as well as enormous insolvencies of several big photo printing companies. The market position of the company was highly affected by the fast growing field of communication technologies and information which gave new birth to the photography market which not only shook the other competitors market however, also put traditional and long standing photography market into a financial crisis which also put these companies to death. Moreover, as compared to other competitors companies, CEWE has a strong position in the photography market by using its correct decisions to maneuver swiftly across the ever changing landscape of the photography market.  On the other hand, CEWE’s management team decided that if the company wants to achieve maximum profit in the photography market, then it is necessary for the company to adopt new technologies in the market which would help the company in achieving its competitive advantage over its competitors.

3.     What factors gave a new shape to photo printing industry? How this industry is replaced by another one?

When the former chief technology officer at CEWE saw the advent of Digital photo technology, he knew that he was about to see the greatest revolution in the field of digital photography soon after the world had witnessed numerous bankruptcy large photo printing companies and that stories of many companies filing for bankruptcy.The factors which changed this industry of photo printing are the profound impact of the fast growing field of innovation and communication technology;these factors gave birth to the digital photo industry.

This industry of printing technology is replaced by digital technology in the field of photography. It took a couple of years to cut the roots of photo printing technology, through fast innovation one after another those companies which forecasted this in advance prepared themselves for this turbulence and emergency and they immediately changed their business model...................

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