Leitax Case

Leitax Case

1. HISTORY

   • 1970
     • Newplex company was founded, dedicated to printing and imaging products
   • 1990
     • Newplex innovates with injection and laser printers, in addition to digital imaging products
   • 1997
     • Newplex made its digital camera division as an independent company called Leitax
     • Leitax introduced its first point, the LX280 zoom megapixel digital camera.
   • 2002
     • Leitax quickly became a global seller with revenues of $ 423 million.
     • Newplex appointed a new director and several new vice-chairmen.
     • At the end of this year Leitax had problems due to bad planning
       • 1. The release of a camera was delayed.
       • 2.. More than the established inventory was sold
       • 3. The company's weak sales are reported.

2. BACKGROUND

   • Before 1998 prices fell and for less than $ 300 a quality camera was purchased.
   • In the year 2000, the digital cameras use storage devices and data compression software.
   • In 2003, digital cameras sold more than movie cameras.
   • In 2005, a growth rate of 21% in sales worldwide was estimated.
   • The company did not have tracking systems for demand planning.

3. LOGISTICS PROCESSES

   • The production was carried out in two manufacturing plants located in China, Mexico and Chile.
   • The distribution centers are located in Little Rock, the Netherlands, Hong Kong and China.
   • The Little Rock DC sells directly to distributors
   • Leitax maintained eight camera models in its product portfolio, offering a wide range of megapixels and internal memory capacity.
   • Retail items were packaged to be shipped through developing countries to resellers.