Management 425 Case Study
Kodak at a Crossroads
Case 13 Bb1
Management 425
Section 001
1. What are the drivers of the photography equipment industry? How do economic characteristics differ between film-based and digital segments?
The drivers of the photography equipment industry are the following:
• Changes in an industry’s long-term growth rate
• Product innovation
• Technological change and manufacturing process innovation
• Changes in cost and efficiency and
• Reductions in uncertainty and business risk
The economic characteristics differ between film-based and digital segments on the pace of technological change, scope of competitive rivalry, number of buyers, and market size and growth rate. Film-base cameras is slowly becoming obsolete, while digital cameras are becoming a great demand among consumers due to their fast image visibility, enabling people to access, analyze and print images faster than ever before. As stated by Morozov and Morris, “Digital cameras have a higher intrinsic value to consumers than film cameras.” The numbers of existing and new rivals in the area of digital photography are emerging, placing the film-base traditional cameras competitive sector behind. Growth in digital photography market is expanding in a quick pace while film-based are decreasing in the market share. Continuing upgrades in the quality of image produced by digital cameras and the lower cost of obtaining one is becoming possible for every individual regardless of geographical location to obtain one. Film-base cameras were generally bought from emerging economies such as China, while digital cameras are distributed among developing countries such as the United States and Japan. The digital photography industry is changing at a fast growing pace, continually changing, due to new product innovations and short product life cycles. Compared to the decrease use of traditional film cameras, digital segments seem to be on the rise.
2.
Case 13 Bb1
Management 425
Section 001
1. What are the drivers of the photography equipment industry? How do economic characteristics differ between film-based and digital segments?
The drivers of the photography equipment industry are the following:
• Changes in an industry’s long-term growth rate
• Product innovation
• Technological change and manufacturing process innovation
• Changes in cost and efficiency and
• Reductions in uncertainty and business risk
The economic characteristics differ between film-based and digital segments on the pace of technological change, scope of competitive rivalry, number of buyers, and market size and growth rate. Film-base cameras is slowly becoming obsolete, while digital cameras are becoming a great demand among consumers due to their fast image visibility, enabling people to access, analyze and print images faster than ever before. As stated by Morozov and Morris, “Digital cameras have a higher intrinsic value to consumers than film cameras.” The numbers of existing and new rivals in the area of digital photography are emerging, placing the film-base traditional cameras competitive sector behind. Growth in digital photography market is expanding in a quick pace while film-based are decreasing in the market share. Continuing upgrades in the quality of image produced by digital cameras and the lower cost of obtaining one is becoming possible for every individual regardless of geographical location to obtain one. Film-base cameras were generally bought from emerging economies such as China, while digital cameras are distributed among developing countries such as the United States and Japan. The digital photography industry is changing at a fast growing pace, continually changing, due to new product innovations and short product life cycles. Compared to the decrease use of traditional film cameras, digital segments seem to be on the rise.
2.