STRATEGIC BUSINESS UNIT

Strategic Business Unit

Strategic Business Unit

Introduction

Technological innovations in products, like television, mobile phones and computer, have changed our life styles, and have provided much needed comfort to the human beings. One of these technological advancements has been the development of the digital camera that has resulted in a decline in the demand for the classic 35mm cameras (Lillesand, 2007). This negative shift in the market demand has led to a situation where most of the 35mm camera manufacturers have either adopted the technological change and adopted the production of the digital cameras, or totally closed down the business unit for the camera.

This paper aims at analyzing and discussing a similar scenario where a company, Garwon Brothers Enterprise that operates in multiples industries decides to shut down its strategic business unit for the cameras in the wake of the sharp decline in the demand of the product. This indicates a substantial preference of users for the digital cameras as opposed to the company's 33mm equipment.

Discussion

Background

Garwon Brother Inc. is a manufacturing firm that has a number of strategic business units operating in various industries. The company is also engaged in the production of chemical products, 35mm cameras and films. However, the strategic business unit for the camera has been a source of concern for the company. The company currently manufactures both 35mm and digital cameras. However, the company has had to face increased competition from its competitors, particularly against its 35mm cameras. Although the company enjoys a significant market share, the growing popularity of the digital camera means that the revenues of the company have suffered, resulting from a slump in its sales. This situation has forced the management of the company to a point where they contemplate closing down the operations for the camera business unit.

Digital Camera VS 35mm Camera

The digital camera depicts the latest technology that is presently available to the camera manufacturers. These cameras offer substantial efficiency and convenience to the users.

The main difference between a digital camera and a 35mm camera is that in digital cameras, light strikes the light-sensitive electronic sensor, whilst with a traditional camera, on the light sensitive film. In addition, the process of obtaining images in digital cameras is going on right in the camera (shooting, processing and preservation as a file to be moved), and in film in the camera are only shooting, while the processing and preservation of the footage made, usually outside the chamber. The technological developments in cameras have made it possible for users to reap out maximum benefits (Fahmy, 2007). The digital camera uses infrared technology with a high sensitivity to capture a vision through an exploration of the terrain. Once you have the image in an advanced algorithm starts the photographic process. By analyzing the wavelengths reflected by the objects of different colors, the camera decides the best estimate of what color is the object, and full of that color the image.

Evaluation of the Present Situation and Decision-Making

Closing down a strategic business unit is a significant consequence ...