Value Creation Analysis of Lomography

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

Case Study of Film Camera

Value Creation in Lomography

The Vanishing and the Potential of Vintage Style

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

CONTENT

BACKGROUND Abstract: As the film photographer, through the case study of lomography, to analyze the value creation system and try to propose some advice for their development. Film cameras may very unfamiliar for the young generation and now from my understanding, the whole market is losing constantly. More and more films company closed like Kodak. However there are still some company try to reborn through the revelotion like Yashica, develop the digital-film camera. In this paper, I want to apply what I learnt to analyze present situation.

BUSINESS MODEL STAKERHOLDERS MAP VALUE FRAMEWORK VALUE FLOW FUTURE STRATEGY REFERENCE

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

BACKGROUND The original concept of Lomography is come from LOMO company. The company produces optics products, at first it manufactured military cameras for spy to record the evidence so it was a kind of pocket camera. Not stopped by the assembling, LOMO company tried to design some lens during 1925 to 1930, meanwhile the company provided optic aiming devices in world war. Between 1914 to 1936, the compony was in the first period, the industrial economy.

The business changed when the specifice camera became popular. The company produced the first Russian camera called "LOMO-compact" and this camera is provided with excellent optics and electronic shutter, controlled by the exposure device. Due to its light weight (only 250 gr), small size (107x68x43,5 mm) and durability of the body, you can always carry it in your pocket or handbag [1] . And besed on LOMO-compact, our LOMO-LC A was born. In 1991, a group of Vienness student found this type of camera. They were attracted by the its "unique, colorful, and sometimes blurry" images. After lomographic society international set up, the LOMO-LC A seperated from LOMO company and formed a new brand called LOMOGRAPHY. This brand is inspired from antitechnology and designs different series of film camera, like Diana F+, La Sardina, Konstruktor and so on.

In the present stage, lomography develops to the experience economy and after independence it transfer the OEM to OBM. CLIENT: From military to public VALUE

BRANDING: The symbol of vintage style

1919 Company nationalised 1914 Company founded

1925 Lens design tested

1921 Company renamed as G.O.Z

1930 Produced a first Russian camera

1936 The new camera, called the "Sport"

1928 1932 Manufacured A copy of Leica a 9x12 camera, camera developed, FOTOKOR the VOOMP I

1992 The lomographic society international founded

1962 LOMO association founded

1995 LOMO LC-A seperated and formed a new compaby

1993 Company went public,renamed as LOMO PLC

Now A serios of film camera 2006 LOMO-LC A+ replaced

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

BUSINESS MODEL

After the seperation of LOMO LC-A, the LOMOGRAPHY became the experience economy, it focuses on the unique experience of photographer. The camera is not only for spy to attain the evidences but also for the normal people to record their daily life. Images contain the personal emotion by using different camera to have different effect.

That is the reason why LOMOGRAPHY focus on the brand experience of their customers. Also the qualities of business are changed into product-service mix, the product service system.

Let us see the business model. The value proposition is lomo camera and lomo film. Besides the long history LOMO-LC A and LOMO LC-A+, the lomography has purchased the Diana F+ from the Great Wall film company, redesign the simple one called La Sardina for the beginners and developed Konstruktor for the customers to build the camera by itself. The new company develops some special lomo films like LOMOCHROME PURPLE FILM and what the film they sell can be used in all 35MM, 120MM and different size of camera no matter it is lomo camera or not.The key activities for the LOMOGRAPHY is the online community, the global lomophotographer can join the website and share the images. The key resources is new type of film and advertisement to attract more customers in the digital cameras market. The lomophotographers with the retail shops are more like partners, developing films there and share feelings in the shop. The distribution center mainly about the staffs and online shopping.

Economic paradigm Business People

Like the most of the business, Lomography also had the period from the industry economy to experience economy.

In the first stage, the LOMO company was belong to the industry econmy. In this type of economy, the company focus on product function. In the begining they produce for the seceret function for spy so the camera should be produced as smaller as possible and also the images of the camera had the high quality. LOMO company focus on the products quality and tried to design and develop different kinds of camera for dynamic use or still use. Their value proposition was according to the commodities. Camera designers would have no chance to asked the feedback of these users, the spy or the soldiers.

Capvating idea Quest Skills Economic focus Approach Economic driver

STRATEGIC PARTNERS

Industry Economy LOMO company Independent production of Russian cameras Specialization of military camera devices Optics market Persuade to develop and purchase Mass and standard production

KEY ACTIVITIES

VALUE PROPOSITION

Experience Economy Lomographer Explore vintage lifestyle Expreimentation of film camera in modern life Lomography community Promote film camera lifestyle Market and branding

CUSTOMER RELATIONSHIP

CUSTOMER SEGMENT

develop the film to the digital photos lomo camera lomo instant

KEY RESOURCES

DISTRIBUTION CHANNELS

lomo film vintage camera bag

COST STRUCTURE cost in delivery, film factory and market promotion

REVENUES STREAM investment on advertisement and devloping new cameras

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

STAKERHOLDERS MAP Value in the first stage was created by manufacturing cameras, lens or other optics products. It was original equipment manufacture.

And when they began to design and produce other kinds of lomocameras, it was original design manufacture. Now, the lomography has run the original brand management. The Lomographic Society International runs Lomography Gallery Stores and so-called "embassies" dedicated to the growth, support and public exposure of analogue photography. Customers interact through social events such as exhibits [2] and workshops . Lomography tries to improve to orignal strategy management. But the biggest chanllenge is how to survive and expanded in the digital camera dominant market.

That is all stakerholders involve the creation and the core value proposition is in the lomograher, staffs or owner of gallery and developers.

ODM OEM Value, Risk and Market POWER

Follow the stakerholders map to find who involved in this creation. The low power and low interest are the people who provide the space for the brand to have the retail shop. Also the online community should be supported by the programmer. These group of people do not creat value for the lomography. The low power but high interest are the main people who consumer the value, like the lomophotographer. They buy the fresh lomo camera or film to fulfill unique, vintage lifestyle. Before the customer, there should be the supplier to provide the materials. The suppliers especially the films providers would survive together with the film cameras. These group is like value survive group. The market is curel and especially for film camera in the digital market. Yes, it is unique but how to keep the feeling of freshness to keep the present and potential customer to creat more value ďź&#x; The question may be answerd by the high power and high interest group. The role of this group is more like scientists. They have the responsibility to create fresh film camera and lead the fashion to break the dominant market. Recent years, lomograhy publish a new series of instant camera, LOMO'Instant (Square / Wide / Automat). In the interview, the owner of Hong Kong Lomograhy Gallery Store told me because more and more people love to have the film pictues instantly and this kind of instant camera can use FUJI films, which provide the option to customers and broden the market. The last stakerholder group is the high power but low interest one. They are responsibel for the business system run but may be not interested for the core of lomography. The most point they focus on is the profits and market development.

OBM

Sponser

Regulator

Film developer

HIGH POWER, LOW INTEREST

Camera designer

HIGH POWER, HIGH INTEREST

CUSTOMER ORDERING SYSTEM

Landlord

Lomographer

LOW POWER, LOW INTEREST

Supplier

LOW POWER, HIGH INTEREST

Staffs

Tester

INTEREST

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

VALUE FRAMEWORK

Society Ecosystem OrganizationDoing well User Fo Ec ot opr in t

Va M lue on fo ey r

USER

The framework of user is more than money, money is for exchanging the camera or the films, but the most conern is the psychology perspective.

Lomographers, the user gain the happiness of photograph when they ues film cameras. Every time we click the button is not only to shoot something but to express the moment. This is the symbolic value. That make the users have a strong belongings. When the lomographers or film photographers meet, even strangers they will communicate.

Profit

Happin- Belongess ing

Stability

Economy

Sustainability Livability of the Environment

Core Values

Wealth

Shared Drivers

Society

Reciprocity

Wellbeing

Meaningful Life

Ecosystem Organization

Ecology

Psychology

Sociology

User Experience

In this framework, doing well to sustain the business. The value surplus by the hit produts and controlled by the market. Organization, the lomography, the whole film cameras focus on the profits, on the running stronger business. The core value of lomography is "Film is Unforgiving[1]", is "unique, colorful, and sometimes blurry", is antitechnology, is vintage and back to the essential.

Fi Va lm lu Ca e fo m r er a

ORGANIZATION

Profit Stability

Economy

Happin- Belongess ing

Core Values

Wealth

ReDai co ly rd

Shared Drivers

EcoEffectiveness Sustainability Livability of the Environment

Social Pesponsibility

Ecology

Reciprocity

Society Transformation Wellbeing

Meaningful Life

Ecosystem Organization

Psychology

Sociology

User

No matter what kind of film cameras, because it is indival products, the cameras is hard to accumulate the wealth. The present society admits the digital cameras as the leader of the market. However, as the user of film cameras, it is more easier to achieve the feeling of fulfill and meaning beacause of unique. It was a nervous time for film photography when digital cameras took off in the 1990s, and seemed set to take over entirely. But with some help from Vladimir Putin - then deputy mayor of St Petersburg - the little Lomo camera became a retro cult classic, and [3] showed film had a bright future .

Va M lue on fo ey r

SOCIETY

Profit Stability

Economy

Happin- Belongess ing Core Values

Wealth

Fo Ec ot opr in t

Shared Drivers

EcoEffectiveness Sustainability

Social Pesponsibility

Ecology

Reciprocity

Meaningful Life

Psychology

Sociology

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

VALUE FLOW Competitors

In the Store

The value flow exsits between the customer and owner.

Financial Support

Material suppliers

Loss of Profit

New formula of film and the components of camera

Data Seasonal Price

LOMOGRAPHIC GALLERY STORE

Development

Film Factory

Out of the Store

Process Cost

Behind the Store

The value flow exsits between the factories and the brand ownership.

Financier

Possibility of Same Supplier

The value flow exsits the society support.

Deliver Cookies

Exploration of Cookie Tips

Lomography service

Buying Restiction

Strategy

Lomographer Customer

Conformable Psychology of Consumer

Salary

Sales feedback

Organization Value

Data

Online Service

Film, anti-technology Happiness & Belongings

Online Purchase

Society

Turnover

Branch Office

Expended the Store

The value flow exsits between the retail shops in different places.

Lisence

Staffs In Store

Government

Sales volume

User Value

Information Money Deliver Intangible

SD 5163 MANAGING VALUE CREATION

WEN Nian, 17084188G

2017 FALL

FUTURE STRATEGY

REFERENCE

Lomography can promote the film culture as the market point.

Persuade the potential customers to escape the technical cage and use your eyes to focus on the deep meanings.

[1](n.d.). Retrieved October 28, 2017, from http://www.lomo.ru/site/english/

●

Cooperate with school and held more public lecture or workshop to make Lomography more familiar to the public. ●

● Sale,

the discount always can help to expand the market, standardlize the global shop to have the same products and discounts.

[2]Lomography. (2017, June 23). Retrieved October 29, 2017, from https://en.wikipedia.org/ wiki/Lomography#History [3]Dowling, S. (2012, November 22). Did the Lomo camera save film photography? Retrieved October 29, 2017, from http://www.bbc.com/news/magazine-20434270

Photo by me