Sharing Economy Case Study Example Essay
sharing economy case study example essay
AS1: THE SHARING ECONOMY
A Brief Description of the Business Concept
According to the Corporate Finance Institute (2022), the sharing economy can be defined as a valuable economic model whereby resources and goods are shared by groups and individuals in a specific collaborative manner, enabling physical assets to be transformed into services. The Corporate Finance Institute (2022) further notes that the tremendous growth being experienced in the sharing economy has been primarily facilitated and enabled through technological advances in online platforms and big data. The sharing economy case study example essay also greatly assists organisations and individuals to earn profits and immense revenues from their underutilised resources. In essence, the latest technological advancements have played an integral role in facilitating the growth in the sharing economy to its current level. According to reliable future projections, the momentum in the sharing economy will be accelerated with additional digital connections (Sundararajan, 2016). This report will undertake a short literature review on the factors inhibiting and promoting participation in the Sharing Economy, develop a Business Concept Statement for the new business unit, and identify any similar initiatives undertaken by Pentax’s competitors.
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In particular, the sharing economy concept has also been described as a socio-economic system created and established within the philosophy of sharing resources. Thus, the sharing economy primarily entails a method of purchasing services and goods, which contrasts the traditional business model of many organisations hiring workers to manufacture products that their consumers purchase. It is imperative to note that sharing economy entails the shared trade, distribution, production, creation, and consumption of services and goods by various organisations and individuals (Wruk, Oberg, and Maurer, 2019) sharing economy case study example essay.
Moreover, systems utilised in sharing economy take a wide range of forms, including leveraging on IT (information technology), specifically different digital platforms, to empower government institutions, non-profit organisations, corporations, and individuals with information, enabling the reuse, sharing, and distribution of excess capacity in services and goods. Importantly, there are two fundamental forms of sharing economy initiatives, including the commercial initiative, whereby businesses offer services and goods to customers for profit. The other form is the non-profit initiative, primarily founded on the book-lending libraries concept, whereby services and goods are offered for free or at a modest subscription (Lansley, 2016). Notably, Pentax can effectively utilise the Sharing Economy concept to drastically improve its global markets’ business operations by bringing together sellers with camera equipment and tools, as well as customers with demand to satisfy their needs.
The Market Need
According to RICOH Imaging Company Limited (2022), Pentax has a belief and philosophy in the SLR photography future since it has a huge market both in Japan and other global markets. It is also worth noting that Pentax is the prominent SLR cameras pioneer in Japan, making it devote all its assets, including passion, technologies, and philosophy, to this great camera’s development. Notably, the PENTAX K-3 Mark III is the APS-C-format SLR lineup’s new flagship that is envisioned to attract a huge market in the global market. In reference to DP Review (2022), Pentax has been an active company since 1952, primarily in the worldwide consumer photography market. DP Review (2022) also notes that the lineup of products from Pentax might not be the biggest in the global market, but Ricoh has endeavoured to develop innovative, solid products mainly under the “Pentax brand name,” which has continued to retain a tremendous loyal users’ base globally. The following illustrations are examples of digital cameras from Pentax:
Pentax 645z Medium Format DSLR (PetaPixel, 2022)
Pentax K-3 III (RICOH Imaging Company Limited, 2022)
In addition, DP Review (2022) notes that the market need for Pentax products is incredibly high globally because of the latest technological advancements, including the emergence of the Internet, Smartphones, and digitalised cameras. sharing economy case study example essay According to recent research studies conducted by renowned scholars, many people worldwide are searching for high-quality camera products, and Pentax is among the companies that produce such cameras. Notably, Pentax also published what is referred to as Pentax K-S2, a brand new DSLR entry level with unique features and tons of colorways, which has been a massive attraction to many female users, professionals, and amateurs globally. It is also imperative to note that Pentax K-S2 is also completely waterproof, and research has shown that it is rare to find such a product within any entry brand model. Hence, this ensures that Pentax has an added advantage and a competitive edge with its Pentax K-S2, especially within the entry brand models (DP Review, 2022).
Research has also shown that many customers globally prefer superior cameras, and Pentax has continued to meet this particular market need through the size of the sensor in its full-frame digital cameras (DP Review, 2022). Subsequently, the full-frame sensor size of Pentax cameras balances the image quality and portability, which many customers prefer nowadays. Moreover, Pentax is also focused on developing its lens lines and High-End DSLR, making it among the popular companies globally. The illustration below portrays digital camera value and shipments from 2003 to 2021, with 2011 being the highest year in the industry when units shipped peaked significantly:
(PetaPixel, 2022)
Notably, from the above illustration, it is noticeable that the DSLR Value has plateaued and maintained its prominence, meaning that Pentax has high chances of succeeding in the industry through its innovative products. Notably, with the utilization of the proposed sharing economy, Pentax will gain a considerable market share in the global market since it already enjoys popularity for many years despite experiencing numerous growth challenges in the industry. Hence, the market needs for Pentax products will continue to grow with the latest technological advancements and increased usage of digitalised cameras (PetaPixel, 2022) sharing economy case study example essay.
My Solution
In reference to the above literature, my solution is that Pentax should embrace the sharing economy concept, especially for its flagship models, including the Pentax K3 Mark III APS-C model. Notably, the latest technological advancements, such as the Internet, will provide Pentax with a huge opportunity to market its products through different online platforms where customers can view them and analyse their features and specifications globally. The sharing economy concept also provides Pentax with a unique global space where it can sell its brand name globally since it will not only be restricted to the Japanese market sharing economy case study example essay. It is also noticeable from the above literature that the market need for Pentax products is incredibly high globally because of the latest technological advancements and increased usage of digitalised cameras. Thus, this provides Pentax with a unique global opportunity to succeed once again through the sharing economy concept as it used to excel in the previous years (Davidson, Finck, & Infranca, 2018).
My Proposed Business Model
In particular, my proposed business model to Pentax is to embrace and adopt the sharing economy concept because it will significantly assist the company in excelling in the global market since it will attain global exposure. Thus, Pentax should adopt the sharing economy concept to recover from its previous failures and regain its status on an international level, not only in Japan (Gaol, Filimonova, & Acharya, 2020). Pentax should acknowledge that the world has been transformed into a unique global village through the latest technological advancements. Hence, adopting the sharing economy concept will be more beneficial since it will provide the company with worldwide exposure and a vast global market to sell its innovative products.
Factors Promoting and Inhibiting participation in the Sharing Economy
Factors promoting participation in the Sharing Economy include motivation and decision, economic factors, and environmental factors (Ravenelle, 2019). In particular, motivation and decision greatly assist people to perform specific actions, which eventually promote new business units within different markets, especially when their needs are being satisfied. In reference to Deckers (2018), numerous research studies conducted by renowned scholars have shown three significant conditions that motivate business organisations to make informed decisions, including intensity, persistence, and activation.
Deckers (2018) further states that these three critical conditions greatly assist these business organisations to realise that their informed decisions will help them attain their projected objectives by influencing customers’ decision-making processes. Notably, Pentax can utilise this motivation and decision factor to explore the sharing economy concept and influence many customers in the global market, such as the American market. Moreover, the sharing platform in the sharing economy associated with peer-to-peer can greatly assist Pentax in understanding the users’ motives for engagement.
On the other hand, Lansley (2016) noted that economic factors also promote the sharing economy concept since it greatly assists in increasing the levels of entrepreneurship and productivity. Moreover, economic factors also motivate creativity and innovation and drastically reduce the cost of products. It is paramount to note that when Pentax uses technology through the sharing economy concept, the company will significantly minimise its production costs since it will create various services within the global markets. In particular, research has shown that there exists a massive demand for digitalised cameras from many customers globally due to the emergence of the latest technological advancements. Hence, Pentax should take advantage of this enormous opportunity brought by the sharing economy concept to recover from its current status and grow its products and sales globally due to attaining international exposure.
In practice, environmental factors also play an integral role in promoting the sharing economy concept since they provide greater attention and focus on the concerns and issues associated with the environment. Lansley (2016) articulated that the media has played a vital role in promoting the importance of sustainability, leading to attention to challenges that developing world economies encounter, including drought, famine, environmental degradation, and overpopulation. Hence, environmental factors will significantly assist Pentax in producing innovative products that are environmentally friendly and sustainable to the environment through the sharing economy concept.
On the other hand, factors inhibiting the sharing economy concept include conflicts with prevailing businesses, transaction and social risk, and expensive services (Sigler & Corcoran, 2021) sharing economy case study example essay. Thus, Pentax should be aware of these factors when adopting the sharing economy concept since they can prevent the company from achieving higher benefits. For instance, Pentax should strive to produce pocket-friendly products, minimise conflicts with prevailing businesses, and mitigate transaction and social risk to succeed effectively in the sharing economy concept.
My Unique Value Proposition (UVP)
In particular, Pentax products are unique and different from others in the marketplace because of their innovative, solid products. Notably, Pentax products have special features, including being completely waterproof, tons of colorways, the huge size of the sensor, the full-frame that balances the image quality and portability, and full-frame digital cameras. Moreover, other features of Pentax products include being Japan’s SLR cameras’ pioneer, remarkable camera development, high-performance viewfinder, pleasant shutter action, ergonomic design, new-generation hyper operation system, and additional versatile smart function (RICOH Imaging Company Limited, 2022).
A Succinct Competitive Analysis
Notably, some of Pentax’s major competitors include Nikon and Canon, as well as different third-party lens manufacturers, including Tamron and Sigma. It is worth noting that Nikon and Canon are among the leading players in the industry that dethroned Pentax from the helm of being among the leaders in the previous years. On the other hand, Tamron and Sigma are renowned for being third-party lens manufacturers that have also dominated the industry. In particular, Canon has taken advantage of the numerous opportunities that the sharing economy concept provides, and the company has already adopted it to attain a unique competitive edge (Muurinen, 2021). It is paramount to note that these four competitors have gradually acquired massive market shares globally, although Pentax has a huge opportunity to provide them with stiff competition, especially after applying the sharing economy concept effectively.
A Quick Overview of My Marketing Plan
In principle, my marketing plan will primarily utilise the latest technological advancements, especially the Internet, through its numerous online platforms, such as social media platforms and Pentax company’s website. Notably, my marketing plan will entail using different social media platforms, such as Instagram, Facebook, and WhatsApp, among others. The marketing plan will utilise these Internet platforms since they will provide Pentax with a global exposure targeting the international market instead of being restricted only in Japan. Hence, this will ensure that all Pentax products and reviews are online through the Internet, where customers globally can access them, read their features and specifications, and make their orders to buy them.
References
Corporate Finance Institute. (2022). Sharing Economy. Available at: https://corporatefinanceinstitute.com/resources/knowledge/other/sharing-economy/ (Accessed: 17 March 2022).
Davidson, N, M., Finck, M., and Infranca, J. J. (2018). The Cambridge Handbook of the Law of the Sharing Economy. Cambridge: Cambridge University Press.
Deckers, L. (2018). Motivation: Biological, Psychological, and Environmental. New York: Routledge.
DP Review. (2022). PENTAX. Available at: https://www.dpreview.com/products/pentax (Accessed: 17 March 2022) sharing economy case study example essay.
Gaol, F. L., Filimonova, N., and Acharya, C. (2020). Impact of disruptive technologies on the sharing economy. Hershey, PA: Business Science Reference.
Lansley, S. (2016). A sharing economy: How social wealth funds could tackle inequality and balance the books. Bristol: Policy Press.
Muurinen, M. (2021). Why Canon Australia ventured into the sharing economy. Available at: https://www.sharetribe.com/academy/canon-sharing-economy/ (Accessed: 17 March 2022).
PetaPixel. (2022). Ricoh Pentax: The Beginning of the End or the Start of a Bright Future? Available at: https://petapixel.com/2022/01/21/ricoh-pentax-the-beginning-of-the-end-or-the-start-of-a-bright-future/ (Accessed: 17 March 2022).
Ravenelle, A. J. (2019). Hustle and gig: Struggling and surviving in the sharing economy. Oakland, California: University of California Press.
RICOH Imaging Company Limited. (2022). PENTAX K-3 III. Available at: https://www.ricoh-imaging.co.jp/english/products/k-3-3/ (Accessed: 17 March 2022).
Sigler, T., and Corcoran, J. (2021). A Modern Guide to the Urban Sharing Economy. Cheltenham, Gloucestershire: Edward Elgar Publishing Limited.
Sundararajan, A. (2016). The sharing economy: The end of employment and the rise of crowd-based capitalism. Cambridge, Massachusetts: The MIT Press.
Wruk, D., Oberg, A., & Maurer, I. (2019). Perspectives on the sharing economy. Newcastle upon Tyne, UK: Cambridge Scholars Publishing sharing economy case study example essay.
