Case: Cameras and Photo Films Industry: Rapid growth after

liberalization
The government of India unveiled its new industrial policy in 1991. In the same year, the government
started taking steps to shift from the old closed economy to a new open economy. As part of liberalization
measures, it delicensed the photo film industry. Like any other sector in India, the demand of photo films
zoomed up after liberalization. If the same demand continues, it is expected to touch a new benchmark.
(see Table 1)

In 1990-1991, the demand for photo films was 22.50 million rolls. In 2000-2001, this demand increased
to 85.50 million rolls. The demand for photo films is estimated to touch 205.40 million rolls by 2014-
2015. (see Table 1)

Table 1: Past and forecasted future demand for photo films

Year Demand (in millions) Year Demand (in millions)

1990-1991 22.50 2001-2002 90.00
1991-1992 25.85 2002-2003 95.00
1992-1993 29.70 2003-2004 102.60
1993-1994 34.20 2004-2005 110.50
1994-1995 43.30 2005-2006 118.60
1995-1996 52.80 2006-2007 127.00
1996-1997 60.00 2007-2008 135.65
1997-1998 65.10 2008-2009 144.50
1998-1999 71.00 2009-2010 153.50
1999-2000 77.70 2014-2015 205.40
2000-2001 85.50

Table 2: Market Segmentation of photo films

Market Segment Share (%)

Professionals 48
Amateurs/Domesti 52
c

Major Players in the market

There are four major players in the Indian Market: Fuji, Kodak, Konica and Agfa. Jindal photo,
incorporated in 1968, is the first private sector company to enter the photo film industry. Jindal has a
technical and marketing tie-up with Fuji Photo Films Co. Ltd., Japan. It markets its products under the
name “Fujifilm”.

Kodak’s successful foray into camera manufacturing and film production has opened up a new dimension
in the market. R. Narayan, a strategic marketing consultant, states that the “horizontal integration of
camera manufacturing and film production has allowed Kodak synergies that account for its strong
presence in the camera industry. Kodak is able to compete as the lowest cost producer in the camera
industry as well as the camera film industry.”

Konica is also an important player in the market. Konica Minolta Photo Imaging Inc. ceases its colour
film and paper product operation in March 2007 and its camera manufacturing business in 2006. Agfa-
Garvet Group also has considerable presence in the market. (see Table 3)

The growing demand for photo films in India has expanded the Indian market. The existing three major
players (see Table 3) are also taking innovative steps by using new technology to increase their market
shares.

Table 3: Leading brands for Photo films

Leading Brand Share (%)

Fuji 44
Kodak 29
Konica 22
Agfa 5

1. A customer who purchases a photo film is selected at random. What is the probability that

a) He has purchased a photo film of brand Fuji?

b) He has purchased a photo film of brand Kodak?
c) He has purchased a photo film of brand Konica?
d) He has purchased a photo film of brand Agfa?

2. A customer who purchases a photo film is randomly selected. What is the probability that the
customer has purchased a photo film of:

a) Brand Fuji and is a professional?

b) Brand Fuji and is an amateur/domestic?
c) Brand Kodak and is a professional?
d) Brand Kodak and is an amateur/domestic?
e) Brand Konica and is a professional?
f) Brand Konica and is an amateur/domestic?
g) Brand Agfa and is a professional?
h) Brand Agfa and is an amateur/domestic?

3. Suppose a small retail store has a stock of 70 Fuji films, 50 Kodak films, 30 Konica films and 10
Agfa films. These films are kept together in a box so that each film has an equal opportunity of
being selected in a draw. A customer purchases three films at random from the box. What is the
probability that

a) All three films are Fuji?

b) All three films are Konica?
c) One film is Kodak, and two films are Agfa?
d) One film is Fuji, one film id Konica and one film is Agfa?