Case Analysis : ' Foto, Inc. Essays
For the past five years, the company has continued to show positive growth numbers in regards to Earnings Per Share, Return on Equity and Stock Price. The company has also maintained a B+ Credit Rating, which limited the cost of debt, and an average image rating of 74 which is 14 points below its top competitor Apertures Inc., and 16 points ahead of Candid Enterprise.
Despite the company’s consistently positive key indicators, it has underperformed in regards to EPS, ROE, and Stock Values when compared to close industry competitors. The company did not meet investor expectations for Earnings Per Share in 4 of the six years in review. Also, the company did not meet investor expectations on the stock value in 4 of the six years in review. It is worth noting, however that the company did meet the Return on Equity for 5 of the six years, and was substantially above Candid Enterprise, and only marginally below Apertures Inc. which are our top two competitors in the industry.
Foto, Inc. adopted a differentiation strategy to obtain market share and expected deep global penetrations. However, the…