The success attributable to leadership in Compaq Computers and Konica Case Study

The achievement attributable to leadership in Compaq Computers and Konica Corp - Case field of operations ExampleFrom its beginning until 1991, the connection witnessed considerable growth and profit. However, as a result of the intense ambition in the market, the company lost momentum and for the first time in its history, the company declared tone ending in 1991, followed by laying off 1700 employees and cutting the price of the products. However, as the untested leader Eckhard Pfeiffer took up the task, he introduced a totally new approach and scheme. On his beginning, as Salazar (1996, p. 638) reports, Pfeiffer declared his seven degree strategy that included continuing to be the major global supplier of PCs and systems, PC division introducing new cost-effective and entry level products which are high performing, the system division providing quality service and client support, maintaining high quality and reliability, high quality customer service and support, a contin uously decreasing price of products ensuring competitive prices in all markets, and an increased sales and distribution. A look into the history of the company proves that the company managed to do all this, and the leadership of Pfeifer in achieving all these in the shortest time cannot be neglected. Pfeiffers victor Mantra and What Konica lacked Pfeiffer did not aim at short term management but long term triumph. His success lies in the fact that he clearly understood what went wrong with the company and he prepared a clear strategy for the company. In addition, he executed what he prepared. According to him, the failure of the company happened because its success made the company rest on its laurels for a while and hence, the company did not key the signals of the growth of its rivals. So it focused only on the high-end market, keeping is products expensive. However, for Pfeifer, the picture was very clear. He knew what to do. His strategy was to slash prices on high-end produ cts to keep the existing range of customers, and to introduce new entry level, low strand products which are designed to sell profitably at a price that matches low-cost competitors. Now, it is time to let on how Pfeifer managed to introduce the low-priced line in a short time. Similarly, even before it falling into loss, Konica completed the threats ahead, reading from the changes in the market. In the year 1986, Fuji Film had 67.5% of the film market share, and Kodak had an increase in its market share by one percent. However, Konica lost one point of market share, falling from 22% to 21%. In addition, competition on the price of photofinishing was intense. The price of developing the film and the price of glossary printing were going down considerably for the last five years. So, the estimate was that the mini-labs would handle 25% of the recreational photofinishing market by 1989. In addition, as Turpin and Shen (1999) state, the camera section where Konica had a 5.5% share too was facing intense competition as the markets had matured and as companies were introducing cameras with a lot of new features and which are user-friendly and the main players in the