CASE 1: POLAROID FOCUSES ITS CAMERAS ON NEW MARKET SEGMENTS

The American-based Polaroid Company has become synonymous with instant

photography, but this alone was insufficient to prevent a sharp decline in its fortunes. By the end

of

1998, the company's stock

market value had fallen tojust one-third of what it was a year earlier.

During 1998 alone, sales revenue had dropped by 13%and profits by 18%. At the end ofthe 1990s,

the company was desperately trying to re-target its products at segments of the market that

previously did not buy Polaroid product