The analysis of the general business environment consisted of estimates of how changes in the environment would affect camera sales and the profitability of the business. Factors included foreign exchange rates, how cameras were sold. and the role of other consumer products. How camera were sold was especially critical because during the 1980s the percentage of the firm’s camera sold via specialty stores had decreased steadily from 70% to 40%. This change in retail distribution demographics had reduced the average wholesale prices of camera because the bulk of cameras was now sold through discount houses and mass merchandisers, where profit margins were lower. The role of other consumer products was important because some of them
Competed for the same segment of the consumer’s disposable income. For example, consumer research had shown that many consumers were trying to choose between buying a compact disc player or a compact camera. Therefore, Olympus viewed compact disc players as competitive products.