Management Concepts Case Study
1101IBA Tute Case Analysis – Preparation Sheet
Week 4 Tutorial
Case for critical thinking: Eastman Kodak
1. Describe the problems which occurred at Eastman Kodak.
Perez championed a dramatic change only to find it wasn't the right model for turning the company around.
Kodak has been in the red for eight consecutive quarters, losing a total of $2 billion
Kodak's problems can be traced to the successes of its past
Blazing growth of camera sales has helped blunt the effects of Kodak's fast-fading film revenues, it hasn't replaced the rich profits of the film business. Even the best mass-market cameras yield slim profit margins
Kodak was in denial. The company had supposedly been on a decade-long journey to digital technology, yet very little had actually been done fatal flaw in Kodak's strategy
2. Why do YOU think these were problem?
Product innovation alone isn't enough to save sick companies or turbocharge healthy ones. For many, their core businesses are being disrupted by globalization, technology shifts, and new competitors.
Kodak was late to recognize the problem, slow to react, and then went down the wrong innovation path
It remains difficult to change Kodak's long-established ways. One of them is a hierarchical culture that believes in the omnipotence of leadership.
Its executives didn't anticipate how fast these digital cameras would become commodities, with low profit margins, as every competitor raced into the market.
Old habits die hard
3. What plans did Perez implement? Were they successful? Explain your answer.
Reinventing the company's core business model. He aims to make Kodak do for photos what Apple does for music: help people to organize and manage their personal libraries of images.
He wants to develop a slew of new digital photo services for consumers that he expects to yield higher returns
Perez found he had to replace a lot of executives to get the company on a new track
4. What would you suggest
Week 4 Tutorial
Case for critical thinking: Eastman Kodak
1. Describe the problems which occurred at Eastman Kodak.
Perez championed a dramatic change only to find it wasn't the right model for turning the company around.
Kodak has been in the red for eight consecutive quarters, losing a total of $2 billion
Kodak's problems can be traced to the successes of its past
Blazing growth of camera sales has helped blunt the effects of Kodak's fast-fading film revenues, it hasn't replaced the rich profits of the film business. Even the best mass-market cameras yield slim profit margins
Kodak was in denial. The company had supposedly been on a decade-long journey to digital technology, yet very little had actually been done fatal flaw in Kodak's strategy
2. Why do YOU think these were problem?
Product innovation alone isn't enough to save sick companies or turbocharge healthy ones. For many, their core businesses are being disrupted by globalization, technology shifts, and new competitors.
Kodak was late to recognize the problem, slow to react, and then went down the wrong innovation path
It remains difficult to change Kodak's long-established ways. One of them is a hierarchical culture that believes in the omnipotence of leadership.
Its executives didn't anticipate how fast these digital cameras would become commodities, with low profit margins, as every competitor raced into the market.
Old habits die hard
3. What plans did Perez implement? Were they successful? Explain your answer.
Reinventing the company's core business model. He aims to make Kodak do for photos what Apple does for music: help people to organize and manage their personal libraries of images.
He wants to develop a slew of new digital photo services for consumers that he expects to yield higher returns
Perez found he had to replace a lot of executives to get the company on a new track
4. What would you suggest