Until recently, all of the company’s products were manufactured in two main factories: Olympus Shenzhen Industrial Ltd. in Shenzhen, China and Olympus Vietnam Co.Ltd, in Dong Nai province in Vietnam. In the current economic situation, the Olympus board of directors has decided to shut down production in China.
Olympus Vietnam Co.Ltd
Shenzhen plant was founded in 1991 and will shut down after 26 years of operation. According to an official press release, the closure is due to a sharp decline in the digital camera market, which is ceding its position to the increased number of smartphones. This led to the fact that some of the production capacity of the factory, lately, simply remained idle. With the closure of Olympus Shenzhen Industrial Ltd, the company will incur additional costs, however, the concentration of production in Vietnam should lead to the continued profitability of the business and improve the competitiveness of products in the future.
What led Olympus to make the decision of relocating their digital camera production to Vietnam, and what impact will this shift have on the quality, pricing, and availability of their cameras in the market?
Why did Olympus decide to move its digital camera production to Vietnam?
What factors led Olympus to make the decision to move digital camera production to Vietnam? Can we expect any changes in terms of product quality or pricing as a result of this move? How will this relocation impact the overall competitiveness of Olympus in the digital camera market?