Paper to be presented at the DRUID Society Conference 2014, CBS, Copenhagen, June 16-18 Modular Encapsulation and Japanese Dominance of the Professional Camera Sub-Market, 1955-1974. Paul Windrum Nottingham University Business School Strategy
[email protected] Michelle Haynes University of Nottingham Business School
[email protected] Peter Thompson Goizueta Business School Emory University
[email protected] Abstract Modular encapsulation provides new features without altering the number of the core modules that make up a complex product, or their functionality. This innovation strategy has not been considered in the mirroring literature. Using a dataset of prices and product features for 1,816 professional cameras sold between 1955 and 1974, we apply data envelope analysis (DEA) to test the strategic significance of lens and body encapsulation by proprietary automated exposure (AE) systems. We find that the professional camera market was modular between 1955 and 1960, dominated by Ger-man specialist body and specialist lens manufacturers. Market structure changed due to the success of innovative Japanese start-ups, particularly integrated body and lens manufacturers who, from 1961, successfully developed proprietary AE systems that offered users novel features. The success of these Japanese integrated manufacturing firms broke the mirror between product architecture and industry architecture. Jelcodes:O31,L60 Breaking the Mirror DRUID Conference Submission Breaking the Mirror: Modular Encapsulation and Japanese Dominance of the Professional Camera Sub-Market, 1955- 1974. February 2014 Abstract Modular encapsulation provides new features without altering the number of the core modules that make up a complex product, or their functionality. This innovation strategy has not been considered in the mirroring literature.