FUJIFILM Holdings Corporation (FUJIY) has recently commenced business operations of FUJIFILM Dis Ticaret A.S., a new subsidiary of Fufijilm Group in Turkey on June 1, 2012. This business commencement followed acquisition of all shares of Filmat Dis Ticaret A.S. ("Filmat"), a Turkish distributor, through Fujifilm's European subsidiary, FUJIFILM Europe GmbH.
Based in Turkey, Filmat was engaged in the distribution of digital cameras, photographic paper and other imaging products, medical products, and graphic products. With this acquisition and establishment of the local subsidiary, FUJIFILM Dis Ticaret A.S., the photographic giant hopes to spread dynamically across the fast growing Turkish market.
The subsidiary, targeted to build a direct selling system across local customer, is anticipated to enhance marketing activities while expanding business opportunities for the company’s imaging products. The subsidiary expects to actively promote the delivery of products and solutions, such as digital cameras and photographic papers; medical products including diagnostic imaging systems and medical imaging network system and graphic arts products.
Over time, we have been witnessing Fujifilm’s diversification beyond the domestic photographic film market, especially in the emerging regions—latest being its entry into the Turkish market. We believe this ongoing diversification strategy will certainly bolster the company’s financial results over the forthcoming quarters, strengthening the company’s demand across these regions.
The company operates in a highly competitive industry wherein traditional and digital imaging products face fierce rivalry from competitors, one of them being Canon Inc. (CAJ).
Currently, we are maintaining a long term ‘Underperform’ recommendation on FUJIY. Also, the company has a Zacks #5 Rank, implying a short-term (1-3 months) ‘Strong Sell’ rating.
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