Management Development Institute, Gurgaon

Post Graduate Diploma in Management 2021-23

Mid-Term Examination, Term-II
Name of the Course: Marketing Practices Implementation
Name of the course Faculty: Prof. Ritu Srivastava

Name: Rishav Jha Roll Number: 21P219

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Q1. Justify if Hasselblad can continue to remain a small yet niche player in medium format
photography for the future. (10 marks)

To determine whether Hasselbland should remain a small but niche player or expand, we must
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examine the firm history presented in the first half of the case to chart a growth path and show the
organization's vision, goal, and strategic objectives. This will provide context for the problem as well
as the scope of the solution. ”

About the company

Since its establishment in 1841, the company has been a leader in offering high-quality items to its
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clients. What began as a small photographic branch quickly grew into a nationwide network of
photo-developing facilities and retail stores. This demonstrates that the organisation has a mindset
of taking advantage of good market conditions. ”

Furthermore, the company has placed a premium on modularity, versatility, and dependability, as
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evidenced by its work with governments and their agencies (e.g., NASA). ”

Furthermore, when faced with competition, Sony has never shied away from innovation and
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foraying into new markets, as evidenced by the release of Mavica, the company's first digital camera.
This was a paradigm shift in the business, and Hasselbland responded by joining its competitors in
the digital imaging race. ”

Apart from that, we can observe a history of collaborations with companies like Fuji and Sony to
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create hybrid products that appeal to the general population. This was done in order to increase
market share in new consumer segments by offering products with outstanding design and
engineering. ”

“ Porter’s Five Forces ”

• Competitive
“ Rivalry: HIGH

Due to industry maturity and slow growth, competition rivalry is considerable. This indicates

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 that standing out from the competition is an excellent way to compete. ”

• Supplier
“ Power: HIGH

Because there are so few suppliers who can produce components of sufficient quality,
suppliers have a lot of leverage. Switching suppliers comes with substantial switching charges
and lock-ins. ”

• Buyer
“ Power: RELATIVELY HIGH

Due to the small number of clients and the fact that cameras are a non-trivial company,
buyer power is relatively significant. High switching costs and differentiation between
competitors add to this. ”

• Threat
“ of Substitutes: HIGH

With the introduction of digital cameras and cellphones, the company is under threat of
being displaced by smaller, more convenient, and less expensive gadgets. ”

• Threat
“ of New Entry: LOW

The incumbent rivals have established production capabilities, distribution channels, and
consumer loyalty due to the mature industry's high entry hurdles. ”

Hence, according to the above market dynamics, the company should not continue to be a tiny
yet niche participant in the medium format photography, and should look into other options
for further diversification of product offerings.

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Q2. Can DJI help Hasselblad in aligning to the marketing priorities of the Master plan 2018 in
moving forward? (10 marks)

Shenzen-based DJI bought a minority stake in Hasselblad in November, 2015. According to Perry
Oosting, CEO, Hasselblad, the partnership was aimed at ‘sharing technical expertise’ and bringing in
more innovation. DJI would also assist Hasselblad financially to help keep up with the growing
competition due to entry of major players in the digital photography market.

Oosting was promoted to serve as the CEO of Hasselblad in January, 2015. His prior success at
previous organizations instilled confidence in the board which appointed him as the CEO.

Oosting prepared a three-year business plan called Masterplan 2018, along which he envisioned the
future growth of Hasselblad. The five key parts to his plan were:

1. Execute a clear and consistent global product and brand value proposition
2. Build all products on key unique differentiators
3. Reach a wider audience, always in line with company’s core values
4. Have a first-in-class interactive digital marketing strategy
5. Prepare the organization for sustainable growth

Let us look at how DJI can help Oosting and Hasselblad achieve their marketing priorities as
mentioned in Masterplan 2018.

1. Execute a clear and consistent global product and brand value proposition

DJI, although a new player, had established dominance and became a global leader in camera drones
and quadcopters for aerial camera photography and had 3000 employees across 6 countries. It had
been successful in targeting a niche and unique segment, that of aerial camera photography.
Likewise, Hasselblad had a very unique positioning in professional photography. Moreover,
Hasselblad did have prior experience in aerial photography, through its partnerships with NASA and
several Apollo missions.

2. Build all products on key unique differentiators

Hasselblad’s core competency was in the medium format imaging. Its main focus was on providing
excellent image quality, design, and performance. It was sometimes referred to as the ‘Rolls Royce of
the camera industry’, alluding to the unique positioning of Hasselblad among professional
photographers. With the entry of several other players in the digital imaging space, Hasselblad would
do well to continue building on its unique differentiators. It could utilize DJI’s technology and
global presence to market its products on a larger scale.

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3. Reach a wider audience, always in line with company’s core values

Hasselblad’s core values included ‘excellence, artistry, and authenticity. Oosting also shifted focus on
concentrating production in Sweden. It closed the design centre in Italy and ramped down
production of premium products in collaboration with Sony, and also stopped lending the brand’s
name through certification. Oosting was focused on driving the company towards its core
capabilities – ‘medium format photography, quality, iconic design, Swedish craftsmanship, living
history, and authenticity’.

4. Have a first-in-class interactive digital marketing strategy

DJI and Hasselblad, in collaboration, were creating content for websites, social media, seminars and
product demonstrations. This was being done by putting together their ambassadors and industry-
leading products. Since Hasselblad did not have any online presence, a successful digital marketing
strategy can be implemented in conjunction with DJI. Hasselblad used to engage with their
followers on popular social media platforms, such as Instagram, Facebook, Twitter, YouTube, and
LinkedIn to garner valuable feedback.

5. Prepare the organization for sustainable growth

Due to the emergence of new technologies in a constantly changing industry, the prospects of
sustained growth stated in the 5th pointer of Oosting's plan appear to be fulfilled by the DJI-
Hasselblad relationship. Hasselblad's industry name, brand loyalty, good reputation, and long history
might be used to develop synergies with DJI's rapidly rising firm, which claims to be a market leader.
The company's aerial camera photography is a tiny but rising industry. However, with the arrival of
DJI, it will be able to properly enter the industry.