Kodak manufactures and sells complex business machines — as relevant here, high volume photocopier and micrographics equipment. Kodak equipment is unique; micrographic software programs that operate on Kodak machines, for example, are not compatible with competitors' machines. Kodak parts are not compatible with other manufacturers' equipment, and vice versa. Kodak equipment, although expensive when new, has little resale…
During Whitmore's leadership, Kodak diversified into life sciences. While entering the market of healthcare imaging (diagnostic equipment) was a proper fit, entering healthcare activities (nutritional supplements) and pharmaceuticals was not a wise decision. For a company like Kodak which has a very strong association with photography, entering a market that does not fit in with its image would not benefit the company. Another major mistake was not purchasing Chester Carlson's xerography patents now called Xerox Corp. Such an investment would have greatly benefited Kodak financially, especially due to the fact that it fit with the company's image. This clearly should a lack of future foresight. However there were good decisions made during Whitmore reign. Focus on image storage and data retrieval systems added to Kodak's market presence. The acquisition of Eikonix Corp provided Kodak with a leading position in commercial imaging market. However it was only till the late 1980s that Kodak directed its initiatives towards the consumer market. This was another flaw. Consumers play a key role in the photography market. They also want a piece of the action', however at a lower cost. Instead of investing…
Kodak’s strategy for digital imaging has been way off and its first digital product, the “Photo CD” which was a failure. It couldn’t leverage upon world’s first electronic image sensor that they launched earlier that was widely used by computer industry worldwide. They used all strategies to the disposal but its timing was way off. They used Radical to incremental innovation an example is their digital photography compared to Sony’s…
As the photographic market had a significant transformation due to the technology in the last five years, Kodak, one of the leaders in this industry is currently straggling with the transformation and end up losing sales in the traditional photographic market. Moreover, the intense competition in the digital camera market has driven the profit margin to a razor-thin level.…
In my March 6 memo, I discussed the need for Kodak to revamp its core strategy and regain popularity. Eastman Kodak has been the leader of photography and printing products for nearly 130 years. Over the last few years Kodak has been in distress due to its poor fundamental shift into the digital age. Lack of strategic creativity led Kodak to misunderstand the industry in which it was operating. This lack of strategic creativity was costly for Kodak.…
This case study reexamines the competitive relationship of the two giants of the photographic and imaging industry: Eastman Kodak Company and the Fuji Photo Film Co., Ltd. It uses the 1990 case study of Dr. H. Donald Hopkins of Temple University, “Kodak vs. Fuji: A Case of Japanese-American Strategic Intervention” as a reference point and attempts to update and clarify this relationship at the beginning of the 21st century. In the nine years since the Hopkins’ case study was published, Kodak has seen some troubled times, yet recently seems to have stabilized. Simultaneously, Fuji continues to slowly gain more of Kodak’s still-dominant market share. The evolution of the industry has been exciting and dynamic, and continues to adapt as consumer’s change. However, new technological players are cause for concern for both Kodak and Fuji. As an employee of the photographic and imaging industry, there are countless sources of information from which I drew my conclusions and knowledge base. My focus was shaped by a broad range of information, including PMA statistics and Nielsen syndicated data reports, and dialogue with photographic customers, consumers, competitors and Fuji employees. I would like…
Eastman Kodak Company, better known as Kodak, specializes in the production of high quality film and printing products. Found by George Eastman in 1880, Kodak’s success began in 1888, when the company introduced the first simple camera to the consumer market. Kodak would continue to create innovations which revolutionized film and photography. In the late 1800’s Kodak developed the first daylight loading camera and marketed the first film used to make motion pictures. By 1900 the company introduced their famous Brownie Camera. The Brownie camera presented an affordable method for hobbyists and general consumers interested in photography. Additionally, Kodak’s Developing Machine allowed users to process film without a darkroom. Throughout the 20th century, Kodak introduced innovative products which would set industry standards for printing and photography. Some of those products included: The first slide projector, the first digital camera, Instamatic pocket-sized cameras, inkjet digital printers, and one-time use disposable cameras.…
The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.…
Other than Kodak's strengths in its long history of successful new product development, Kodak has been outstanding in its professional market. Most of Kodak's significant innovations in digital photography are associated with such a market. However, in consumer market, Kodak's poor performance to bring up a world-beating product has been considered a key weakness. Regarding to it, Kodak has made some changes in term of its method to develop new products. Effectively applying the Silicon Valley model and getting…
In 2003, Eastman Kodak Company faced one of the biggest challenges in its long history: what should the company do now that demand for its traditional film products was rapidly declining. Should the company turn its back on traditional photography (about 70% of company revenues) to embrace new digital photography technologies? Was this strategy too risky for the company given that the digital photography arena was highly competitive and that many competitors had a head start on developing a coherent digital strategy. Should Kodak, a company whose name was synonymous with film and photographic papers, really exit a market so central to its identity?…
[ 5 ]. Morozov, B. (2009) KODAK 'S CHALLENGE: SURVIVING THE DISRUPTIVE "WINDS OF CHANGE", Business case journal p. 34…
Kodak failed to recognize the significance of the digital imaging market. They diversified through acquisitions and hiring, to expand market share and to push for R&D to explore new technologies, especially digital imaging. However, they approached it with the same tried and tested methods of operations, and did not want to let go of their focus and success in the film-based market. (E.g. Kodak was first to introduce image sensor, the core element of digital camera, but did not take advantage of it)…
Canon 's strategies have been very effective in balancing growth of market share with profitability, with the firm controlling a significant share of focused niche markets in the imaging industry. Canon 's strategic challenges involved identifying the markets in which it intended to compete and developing competitive advantages to allow the firm to balance market share and profitability growth within these markets. In the late 1960s, the firm initially adopted a business-level strategic vision of focusing on the small photocopier niche that was underserved by its major competitors using a technology that was totally different than the existing technologies used by competitors. The strategic vision provided direction for the firm 's strategic planning process. At the same time, the corporate planning process was flexible enough to allow Canon to recognize and exploit opportunities in related markets over the long run, with the firm eventually adopting a corporate-level strategy of horizontal diversification based on the evolution of its core competencies. Over the long run, the development and application of Canon 's strategy has made the firm a leader in the imaging industry group.…
Until the 80's photography industry was pretty much based on cameras that used films to capture images. Kodak had 90% market share of film's market and 85% of camera's market by that time. But in 1981 Sony's plans to launch Mavica, world's first digital camera, marked the beginning of a technological industry shock. Kodak's executives where frightened that photography industry would die. To react to this change Kodak went trough seven different restructuring between 1983 and 1993. During that period Kodak developed its strategy based on three main pillars: protect its core business (photography supply, specially films) from Fuji's ascension, explore digital imaging to keep up with market changes, and start to diversify its business trough acquisitions.…
"Success is never a destination - it is a journey" (Satenig St. Marie) and there is a company that understands that journey. Kodak has been around for many years providing families around the world with innovative and high quality products. Many homes worldwide recognize and associate film with the Kodak name. "The company ranks as a premier multinational corporation, with a brand recognized in virtually every country around the world" (Kodak History). However, the changes in technology create a dilemma for Kodak. The company's considerations for digital imaging will change its long history with 35mm film production. Will the shift from 35mm to digital imaging affect Kodak's successful journey? To find an answer to this question, we must analyze Kodak from an economic perspective. An economic perspective views many different factors and determines whether it is in Kodak's best interest to pursue digital imaging, will give enough evidence to support a rational decision.…