BUS 599 Week 9 Assignment 3 A New Strategy for Kodak-Case 28 The rise and fall of Eastman Kodak…
Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as:…
When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other competitors obtained the ability bring new products to market in a much shorter timeframe (Brickley, 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. With this changing market environment and technological advancement, Kodak lost its monopoly in the film production market and was forced to make a change.…
Blue Wave Digital has developed a strategic plan depicting team decisions that have resulted in short and long term implications for our goal of being the clear market leader in the camera industry. In order to become financial successful Blue Wave had to make several adjustments in order for are strategy to become effective. One of the biggest decision was deciding which camera can make the most profit and still keeping customers happy, along with still being competitive within the camera industry.…
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…
In the increasingly competitive corporate world, it is often difficult for organisations to decide the types of programmes and projects necessary to manage their finite resources. A businesses’ portfolio, or “The totality of an organisation’s investment ... in the Changes required to achieve its Strategic Objectives”¹, requires sound decision-making processes and carefully proposed solutions in order to make returns for investment decisions. The management of the firms’ corporate portfolio allows for a clear portfolio strategy, providing companies with an “ongoing, rigorous data-driven capability for the evaluation, prioritization, selection and monitoring of individual investment opportunities”². This allows for individual decisions to be formed into an organisational portfolio that can create competition for finite resources amongst investment decisions. This leads to an optimisation of the portfolio across the various financial, strategic and risk objectives.…
of Kodak, at the 1984 annual meeting: Like many companies, we are not used to working in an environment where there is rapid technological transfer from laboratory to the marketplace. But we know that will be important in our future.…
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…
Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, Smith, & Zimmerman, 2009, p. 358). Technological advances, robotics, new design capabilities and better communications made it possible for the other companies to bring new products to the market in much less time. It was now months instead of years (Brickley et al., 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. Kodak’s monopoly was gone. This caused Eastman Kodak to make changes to its organization architecture in 1984; the design of the current organization architecture no longer fit the business environment for the film industry. One of the largest factors to motivate Eastman Kodak to make these changes, were increased competition and decreased market share. The stock price of Eastman Kodak went from $85 a share in 1982 to just over $71 in 1984. This is a drop of 16% in their stock price (Brickley et al., 2009, p. 358). When compared to the increases in stock for the other companies in this market as a whole, the decrease was disturbing.…
A century old Journey as an Icon, a Company and Market Leader Kodak faced various dilemmas. Though best inventions and good products emerged during 1970 to 2005, lack of clarity led the empire to dust. This resulted in Leaders at Kodak directed and redirected company from Photographic to Imaging to printing to Consumer Electronics. New players like Fuji Films, Apple and Google, used this opportunity and situation to grow against a giant. To add more, product or service diversification was easy for small player while Kodak struggled for same because of organization size. Kodak used ‘Perfect Product (PP)’ approach to reach customers others used more dynamic approach of ‘Invent it, Introduce it and Improve it (III)’. The dilemma to switch between PP to III, lost the race for Kodak. This led to slow product delivery for technology greed customer needs. I see that when Kodak struggled to cross Tuckman’s 2nd stage – Storming Stage, players like Cannon and Nikon were inch close to 4th stage – performing.…
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.…
What are the drivers of the photography equipment industry? How do economic characteristics differ between film-based and digital segments?…
1. Diagnose the reasons for Kodak’s market share loss and make your assessment of the likely development of the market if Kodak maintained the status quo.…
The world of photography has changed radically since 1994 when this case was presented. For simplicity, we will write this case study as if it were 1994. With that in mind, we will assume that digital photograph technology is in its infancy and that Kodak has no idea of the gravity that this technology will have on the industry. We are assuming that store-brand film (film carrying the Walgreens or K-Mart name, for example) is manufactured by one of the five…
Immensely successful companies can become myopic and product oriented instead of focusing on consumers’ needs. Kodak’s story of failing has its roots in its success, which made it resistant to change. Its insular corporate culture believed that its strength was in its brand and marketing, and it underestimated the threat of digital.…