Since its hot debut in the digital camcorder industry in May of 2007, Flip has been embraced by many people for its affordable price and outstanding quality. While others go as much "technology" as possible with their newly introduced models, Flip keeps it simple but high quality.

          Flip has gained its popularity among celebrities as well; especially Oprah Winfrey and Rosie O'Donnell. Unlike those major electronic producers such as Sony or Samsung, Flip has only 80 employees who have introduced a camcorder that costs around $120 to the average of $314. According to one research, Flip sold about 6 million camcorders in the U.S. market only in 2007.

          What has been the major customer demand driven factor? Flip simply transformed their customers into amateur film makers with its easy-to-use functions of the camcorder. It's the size of a bar of soap and does not require any cables to transfer the video file from the camcorder to computer; users simply connect the device to the computer with built-in USB connector. According to the CEO of Flip, their target was to "...strip away all control buttons and features from a typical camcorder and add back only the essentials" (BusinessWeek).

          Their new model which is slightly smaller in size is sold in 20,000 stores, including Wal-Mart, Costco, and Best Buy. The prices are comparably cheaper - as usual - and come with different colors: stark white, black, orange, and pink.

          It probably had been a tough journey for the firm to compete in one of the most competitive markets. The major brands such as Samsung, Sony, Panasonic, and more are already sharing the limited market, Flip has targeted the small segment where people don't want to spend much but like to own a camcorder that is affordable and well equipped for the price.

          Concentrating on such segment became the competitive advantage for Flip and therefore is able to meet the demand for the segment. This article opened my eyes that one does not always have to follow the trends, and those who know how to differentiate their products in the saturated market are more likely to be successful with their business.

Jana, Reena. "Pure Digital Flips the Script" BusinessWeek. April 17, 2008.
http://www.businessweek.com/magazine/content/08_17/b4081076893508.htm?chan=search

20601008 - 10th Entry