Lexar Media Inc.
The Digital Photography Company?
17th Nov. 2011
Lexar Media
Monica Fan
Denise Ahern
Victoria Sheehan
Sean O’ Leary
Eimear Clancy
Lexar Media : General
Overview
John Reimer –President and CEO 1997
In 2001 branched in USB marketplace
Takeover in 2006- Micron
Market
 Flash Card Market Sales Volume (billion)
6
5.282
5
4
Sales Volume
(billion)
3
2
1
1.254
0.221
0
1997
2000
2004
Market
 Particular for Digital Photography Market
Sales Volume (million)
40
35
30
25
20
15
10
5
0
38.7
11.6
1999
Sales Volume
(million)
15.1
2000
2005
Strategies
 Luring Market: Digital Photography
Focus
Distribution Strategies
Original
Being direct to Retailers
Equipment
“Push” Strategy
Manufacturer
Relationships
Crossing the Chasm
Three Segments in the
Market
Professionals
Prosumers
Amateurs
Crossing the Chasm
Average Camera Users
3C Campaign
Lexar-using Elite Photographers
A free data recovery service to
customers
Professionals
Reputation
John Reimer CEO and
President
1997- 2004
•
Passionate about Photography
•
Former VP of SanDisk, Lexar’s Main
competitor
•
Visionary
How Reimer successfully
established the
Lexar brand
•
Company focused solely on one market,
digital photography
•
Aimed it at the right market, professional
photographers
Why were Lexar Media so
successful?
 Distribution Strategy:
 Two-tied strategy: sell to both camera manufacturers
and directly to retailers
 Partnerships:
 Strategic partnerships with Sony, Samsung and Olympus
 Product:
 Proprietary technology made the digital film up to three
times faster than their competitors
SWOT Analysis
o Strengths:
 Differentiated product and market strategy
 Strategic relationships
 Cards certified for “Digital Film
Compliance”
o Weaknesses:
 Too focused on photography
 Purchase flash memory from external
providers
SWOT Analysis
 Opportunities:
 Memory used via USB port
 Create new relationships with other
camera brands
 Threats:
 SanDisk is their major competitor
 Relationship with Sony could break down
Lexar: Developments Since
2001
 2001: After missing Quarterly numbers,
Printroom.com is sold to it’s original founders.
Shoot & Share and SayCheese.com are
discontinued.
 2002: Lexar signals it’s diversification as a
company by removing the words “digital
film” from its packaging.
Lexar: Developments Since
2001
 Lexar announces and ships it’s first USB Flash
Drive.
 2003: Lexar enters the MP3 market with it’s
JumpDrive Music player.
Lexar: Developments Since
2001
 2004: Lexar agreed a deal with Kodak that
allows it to distribute flash cards branded with
Kodak’s name.
 Lexar also entered the gaming storage market.
 Although revenues continued to grow strongly
from 2003 – 2005, Lexar was still unprofitable
and losses were increasing.
 SanDisk, cash rich and profitable, was able to
slaughter the competition as regards pricing.
 Lexar was at a crossroads and needed a new
strategy.
Lexar: Developments Since
2001
 2006: Micron, one of the world’s
leading semiconductor companies,
acquired Lexar for $850M.
 As Micron developed it’s own NAND,
the biggest cost for card makers, Lexar
was able to avail of significant savings.
 Lexar had previously sourced flash
memory from Samsung.
Now
Subsidiary of Micron Technology, Inc
Digital photo/video
Gaming
Personal Storage
Mobile storage
Any Questions?