Leitax Case

In: Business and Management

Submitted By harshaanth
Words 1821
Pages 8
1. Introduction: Leitax is a large digital camera manufacturer and it was the seventh largest player in the field of digital camera business in 2004. It is headquartered in Memphis, Tennesse, U.S.A and made a revenue of $423 million in 2002. Leitax was a subsidiary of Newplex, a $22 Billion print, imaging and a consumer electronics company. Leitax was started owing to the large boom period witnessed in the digital camera market in the early 2000’s. It was to become a company that focused on manufacturing and selling of digital cameras in the different geographical regions of the U.S and in the world namely Europe, Middle East and Africa (EMEA) and the Asia Pacific Region (APAC).
Leitax was able to sell its cameras through retailers such as Best Buy, CompUSA and Circuit City in U.S.A , Carrefour in Latin America and other retailers in Europe and Asia. In addition to the respected Directors already employed, Leitax further employed Sales Directors to control operations in the Latin American and Canadian regions. Leitax maintained Distribution Centres (DC’s) in Little Rock & Arkansas in the U.S, Amsterdam-Holland in Europe and Hong Kong- China. Manufacturing was undertaken in the plants located in Mexico, Chile and China and then were shipped to the DC’s for resale to the retailers.

Leitax on an average had produced and maintained eight camera models in its product portfolio that offered optical zoom, megapixel resolution and internal memory. These cameras were able to the upper and middle income level consumers and each camera had multiple SKU’s. The product life-cycle of these cameras ranged from nine to fifteen months and had started getting shorter with the high end featured packed cameras that seemed to have the shortest product life.

Kevin Fowler and Brian McMillan two Upper Management employees at Leitax were discussing the new and possible changes…...

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