Kodak: Funtime Film
Kodak: Funtime Film
Case Analysis
Marco Cader
Prof. Fruzzetti
MRKT 4001
12/13/2012
I. Situation Analysis
Eastman Kodak Company, founded in 1889 by George Eastman, was the prime manufacturer and distributor of easy-use cameras and films. Films being their main product of grandeur; Kodak stood out above all competitors by all means. By the first hundreds of years, Kodak had the highest market share in the film industry, both globally and in the United States. Things were about to change in the industry and the other competitors would take advantage of Kodak’s bad decision making.
On 1994, Kodak stock had dropped by 8% in value of a rumors price cut on film. (HBS) Kodak still having an extreme advantage over its competitors with a market share in the United States of 76%; it had dropped to 70% over the past years. This is where Kodak started facing some financial problems. The 6% drop occurred due to Kodak’s competitors: Fuji Photo Film Co. and Konica Corp Group which had films with a lower cost than Kodak did and which consumers were more eligible to buy at a lower price. When this happened Kodak decided to introduce a new brand 20% below the price of their premium and leading brand Gold Plus, which was sold at $3.49, which could compete with Fuji Film and Konica’s price level, $2.91, the brand was called Funtime. Having Kodak make this decision only means one thing, market expansion. Now, this decision may cause some backfire on Kodak when introducing to new market as Fuji Film a Konica are leaders, Kodak may be desperate to regain market share in the United States film industry. Kodak still being the leader by 70% on the market share, Fuji 11%, Polaroid with their instant cameras 4%, a private label through which 3M sold to, 10% and other companies 5%.
Fuji made a strong move to enter Kodak’s territory by being the official film of the 1984 Summer Olympics held in Los Angeles. Fuji’s US gross sales increased by 15% as Kodak’s only increased a
Case Analysis
Marco Cader
Prof. Fruzzetti
MRKT 4001
12/13/2012
I. Situation Analysis
Eastman Kodak Company, founded in 1889 by George Eastman, was the prime manufacturer and distributor of easy-use cameras and films. Films being their main product of grandeur; Kodak stood out above all competitors by all means. By the first hundreds of years, Kodak had the highest market share in the film industry, both globally and in the United States. Things were about to change in the industry and the other competitors would take advantage of Kodak’s bad decision making.
On 1994, Kodak stock had dropped by 8% in value of a rumors price cut on film. (HBS) Kodak still having an extreme advantage over its competitors with a market share in the United States of 76%; it had dropped to 70% over the past years. This is where Kodak started facing some financial problems. The 6% drop occurred due to Kodak’s competitors: Fuji Photo Film Co. and Konica Corp Group which had films with a lower cost than Kodak did and which consumers were more eligible to buy at a lower price. When this happened Kodak decided to introduce a new brand 20% below the price of their premium and leading brand Gold Plus, which was sold at $3.49, which could compete with Fuji Film and Konica’s price level, $2.91, the brand was called Funtime. Having Kodak make this decision only means one thing, market expansion. Now, this decision may cause some backfire on Kodak when introducing to new market as Fuji Film a Konica are leaders, Kodak may be desperate to regain market share in the United States film industry. Kodak still being the leader by 70% on the market share, Fuji 11%, Polaroid with their instant cameras 4%, a private label through which 3M sold to, 10% and other companies 5%.
Fuji made a strong move to enter Kodak’s territory by being the official film of the 1984 Summer Olympics held in Los Angeles. Fuji’s US gross sales increased by 15% as Kodak’s only increased a
Cited: Sokolow, Andrej. "Kodak: The Long Downfall of an Industry Pioneer - HispanicBusiness.com." #1 News Resource for Hispanic and Latino Entrepreneurs, Professionals and Small Business Owners-Hispanicbusiness.com. 19 Jan 2012. Web. 11 Dec 2012. <http://www.hispanicbusiness.com/2012/1/19/kodak_the_long_downfall_of_an.htm>. Cohan, Peter. "How Success Killed Eastman Kodak - Forbes." Information for the World 's Business Leaders - Forbes.com. Forbes, 1 Oct 2011. Web. 11 Dec 2012. <http://www.forbes.com/sites/petercohan/2011/10/01/how-success-killed-eastman-kodak/>. Dolan, Robert J. Harvard Business School HBS: Eastman Kodak Company: Funtime Film, May 8, 1995. Print