Olympus Sells Off Camera Business

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. strike a deal / straɪk ə dil / (idiom) – to achieve a deal or an agreement with someone or something successfully
    Example:

    The company hopes to strike a deal with an international brand to reach foreign markets.


  2. standalone / ˈstænd əˌloʊn / (adj) – able to operate or work on its own
    Example:

    I have a smartphone, but I still use a standalone camera to take pictures when I travel.


  3. endorse / ɛnˈdɔrs / (v) – to make a public statement of support or approval
    Example:

    The celebrity endorses the new fashion brand.


  4. lose (one’s) edge / luz ɛdʒ / (idiom) – to no longer have the skills, advantages, or qualities that previously brought success
    Example:

    The brand failed to meet its sales targets last quarter for the first time ever, and now analysts are wondering if it’s starting to lose its edge.


  5. revitalize / riˈvaɪt lˌaɪz / (v) – to make something lively, energetic, healthy, or successful again
    Example:

    The mayor is going to revitalize the city by boosting tourism.


Article

Read the text below.

After 84 years in the industry, famous camera brand Olympus has decided to sell its camera manufacturing business.


The company is now seeking to strike a deal with a Japanese investment firm to sell the camera and imaging part of its business.  The price of the sale has not been disclosed, but the parties plan to sign an agreement by September and finalize the sale by the end of the year.


Olympus made the decision to sell its camera business after failing to keep up with the severely competitive digital camera market. According to a company report, Olympus has been recording losses for the past three years because of the evolution of more sophisticated smartphone cameras, which have come to replace standalone cameras. Some experts estimate that between 2010 and 2018, the market for standalone cameras has fallen by 84% because of smartphones.


Olympus, which originally only manufactured microscopes, started its camera business in 1936. The company continued to develop its products through the years, achieving great success in the 1970s when world-famous photographers endorsed its cameras. However, the company lost its edge later on and failed to attract new customers for its camera products.


Olympus is hoping that the Japanese investment firm can revitalize the camera business by using existing Olympus brands, such as the Zuiko camera lenses, to create new products.


Olympus issued a statement saying that the sell-off is the best way to preserve the brand’s legacy. The company added that they are grateful for the loyalty and support of customers and assured them that business will continue as usual until the deal is finalized.


After the deal, Olympus will focus more on developing medical equipment.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think Olympus selling off its camera business is a good move? Why or why not?
• Do you think it will be advantageous for the investment firm to make use of existing Olympus brands to create new products? Why or why not?

Discussion B

• What other industries/businesses do you think could be affected by the advancement of smartphones (e.g. manufacturers of calculators, telephone companies)? Discuss.
• Do you think these industries/businesses can survive or will be phased out? Discuss.