...film business (Kodak, 2015). It is evident from various sources that Kodak’s failure in seizing the opportunity in the rising digital photography market stem from its organization’s internal structure’s failures. It will be explored in this essay the driving factors that led to its restructuring and emergence from bankruptcy in 2013. Kodak had enjoyed decades of success, notably achieving US$10 Billion sales in 1981, from dominating the film photography market since George Eastman founded the company in...
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...KODAK case study Kodak’s Performance Today Kodak is in trouble: for the nine months ended 30 September 2005, Eastman Kodak’s revenues increased by only 3% to US$10.07bn and the net-loss from continuing operations totalled US$1.32bn, versus an income of US$139m.6 Last month, film sales for Kodak fell 37% for rolls and 13% in single-use cameras,7 and despite similar shocks affecting the rest of the industry Kodak’s declines were the steepest – versus Fuji's declines of 28% in roll and 5% in single use cameras and other private label's decline of 12% in role and gain of 5% in single use cameras.8 Share loss at Kodak appears to be driven by price as it grapples to increase revenues from an outdated industry, as Big Yellow's roll price increased 5% compared to declines of 9% and 11% for Fuji and Private Labels. What was done wrong? - Kodak used a razor-blade strategy: it sold cameras at a low cost, and film fuelled Kodak’s growth and profits => The business became heavily dependent on this highly profitable margin from film, and progressively paid less attention to equipment. -Kodak’s tried and tested strategy was evident throughout the business – and even in Dental Products. In a similar theme to T. Levitt’s Marketing Myopia16, Kodak’s lack of strategic creativity led it to misinterpret the very line of work and type of industry that it was operating in which was later devastated with a fundamental shift towards the digital age - Strategic problems were tackled through...
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...Team U Kodak Case Study 6 July 2010 Provide an overview of the case and the environment that video cameras are competing in today • Historical: Camcorder sales are traditionally dwarfed by “Still”, or Point-n-click cameras • Digital Still Cameras account for 95% of camera market space • Est. 60m digital cameras sold per year • Est. 4m video cameras, or camcorders sold per year • Still a multi-billion dollar industry • Point-n-clip video records, or “mini cameras”, lead by “FLIP VIDEO” created a surge and have rejuvenated the camcorder market segment • Flip Video is seen as a pioneer in the video camera market • Consumer friendly video solutions • Easy to create, edit, and upload short videos • 2009 – Cisco purchases Pure Digital for $590m • Recognizing that the “user created video” market is exploding, in 2009 Steve Jobs - CEO of Apple, announces “we want to get into this.” • Launches IPOD Nano • Makes rest leaders like Cisco, Sony, Kodak, very nervous • Bundled solutions Segment the video camera market in the US and identify the demographic, geographic, psychographic and behavioral (product purchase behavior, brand purchase behavior and price sensitivity) of this market. • Demographic Segment: Targeted directly toward younger generation of YouTube, Facebook, and Myspace Users • Behavioral Segment: Targeted directly toward consumers with active lifestyles and want compact, yet functional video recorders • Soccer Moms • Travel...
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...To: Kelly Johnston, CEO Kodak From: Amelia Morris, Head of Marketing Operations, Kodak In Reference To: A Kodak moment; drawing your attention to major architectural flaws within our company, specifically the MAPP plan, as well as solutions for more sustainable options for future structures. It has come to my attention that there are some major flaws lying inside our organizational architecture. These flaws lay in the foundation of Kodak`s organization structure and so we cannot move forward until these basic errors are corrected. We are seeking companywide success and must act as a company to achieve this. Throughout its history we`ve experienced dramatic economic upturns and downturns. We are currently trying to pull ourselves out of bankruptcy and I believe the way to do so is through changes in our organizational architecture. These changes alone will not lead to success, as we still face problems in the digital technology area however they will certainly contribute positively. This means making changes in performance-evaluation methods, reward systems and responsibility assignments. Our previous attempts; decentralization in 1984 and the MAPP plan in 1987 have been widely unsuccessful. This means we must look closely at what went wrong within these plans, and restructure accordingly. Now, I’d like to specify what the flaws were in our initial organization restructure plans. 1987 saw Kodak change the assignments of decision rights within our company. Clearly...
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...Kodak and the Digital Revolution [pic] [pic][pic]Brief Overview: Kodak is a multinational American corporation which has become a household name most known for its film products. The company has come face to face with many changes due to the digital revolution which has created a rapid changing photography industry. George Eastman began Kodak in 1880 and introduced the first Kodak camera in 1888 coining the slogan “you press the button, we do the rest.” Eastman held a high standard for the company when it came to competition however with many managerial and product line changes, Kodak has slowly fallen behind in the industry. The company has experienced many shortcomings with the most recent trend of digital photography. According to Exhibit 7, from 1998-2002 Kodak was 2nd to Sony in the U.S. for the percent of units sold. The company is now considering layoffs as market share, film sales, and company revenues are down. Problems: § The company is faced with multiple managerial problems. First, the company lacked fresh blood in its management team. All of its CEO’s primarily came from the manufacturing jobs within its own company. This hurt the company overall and put a damper on keeping up with technological changes and competition as “Kodak avoided anything risky or innovative.” Second, when the company finally did add new blood to its management team things still didn’t look up. CEO Kay Whitmore was added in 1990 and changed the focus to “film based technology” such...
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...This case study of Kodak has face several challenges in order to compete with other photographic film businesses. Besides, the tremendous growth in technology has intimidate the company's core business, producing photographic products. In this case study, Kodak has gone through a transition stage in the late 80s to 90s. The motive behind of this transition was due to the prologue of new technology where during those years, people are more likely to use digital photography instead of the old traditional photography films. Kodak were well-known in developing photographic products and the company has developed most of the components of digital photography, nevertheless the effort has lead to a severe impact on the company business. Question 1 What is your analysis of what has gone wrong so far? In the recent years, Kodak has undertaken a transformation from being the traditional film business to a new digital photography business but the effort was not acceptable which lead to sales decline in the United States ("TECHNOLOGY; Advice to Help Kodak" 2004). It is said that, by recruiting in two CEOs from different industries was not a good idea for Kodak (Rise and Fall 2014). Kodak thought that, the CEOs from a dissimilar industry would present in new ideas which might help Kodak to maintain its position in the industry and also to make profits (Rise and Fall 2014). Based on the case study, Kodak had borrowed some amount of money just to finance the purchase of Sterling Drug, Inc...
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...KODAK VS. FUJI: THE BATTLE FOR GLOBAL MARKET SHARE by Thomas C. Finnerty Thomas C. Finnerty is a doctoral candidate in the Doctoral of Professional Studies Program, Lubin School of Business, Pace University, New York. This case was written under the supervision of Warren J. Keegan, Professor of International Business and Marketing and Director of the Institute for Global Business Strategy, Lubin School of Business, Pace University, New York, as a basis for class discussion rather than to illustrate either effective or ineffective handling of a business situation. ©2000 Dr. Warren J. Keegan. *The following case solely represents the opinion of the author and does not express the opinions of the Eastman Kodak Company of Fuji Photo Film U.S.A., Inc. ACKNOWLEDGMENTS 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...
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...KODAK CASE STUDY HOW KODAK LEVERAGED THE POWER OF COMMUNITY published on 5/20/2008 at MarketingProfs.com by Kimberly Smith When it chose to enter the saturated inkjet market 20 years late, Eastman Kodak had a few surprises up its sleeve: half-priced ink cartridges and prints that retain their bright colors more than 600 times longer than competitor brands. Still, in a world where more-tantalizing gadgets such as ultra-thin laptops and digital cameras often take center stage, the company found it also needed a little ingenuity on the marketing side if it was to merit the attention it needed to gain market share. Proven advertising techniques were set in motion and a special promotion with NBC's Celebrity Apprentice was launched; nevertheless, questions remained about how effective those were in luring the target market. So company Research Analyst Aprille Byam quickly set out to get a better feel for market perceptions and behavior, hoping she might also generate excitement around the new technology. Aspiring to bridge the gap between quantitative and qualitative research, she worked with online panel management provider Vision Critical in 2007 to create Print Rave, a fusion of Web-based panel and online community that allowed the company to both directly communicate with users and moderate member-to-member interactions. That combination allowed Eastman Kodak to delve into the hard questions and keep users engaged so that it could gather the insight needed to forge ahead...
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...Managerial Economics Case Studies Institutional Affiliation Managerial Economics Case Studies #1. Three aspects of organizational architecture The three vital components of organizational architecture are: a) assignment of decision rights; b) methods of rewarding individuals; and c) structure of systems to evaluate the performance of both individuals and business units. First, assignment of decision rights involves giving the responsibility of decision-making to top-level executives. It is imperative that an organization is able to delegate the duty of making a decision to a manager who has relevant information and knowledge on the internal and external factors that affects the operations and goals of the organization. The architecture of an organization and its environment will determine who will be the decision-maker for the company. In some organizations, the top-level executive may have them most relevant information and thus, a centralized decision-making process can be adopted. There are instances when the lower-level employees may have the most relevant information, thus, decision-making rights become decentralized. Second, methods of rewarding individuals determine how the organization will provide incentives to its employees. Organizational goals and employee’s productivity play great roles in determining a scheme of remuneration. Some organizations repay their employees through financial rewards such as the monthly wage, and cost of living allowance, and other benefits...
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...Kodak and Fuji Film Running head: KODK and FUJI FILM 1 Kodak and Fuji Film BUS 302 February 2, 2013 Running head: KODAK and FUJIFILM 2 ABSTRACT Eastman Kodak Company and Fujifilm are competing corporations in the photography supply and equipment industry. When the industry changed both companies were impacted, but due to differing management practices and ability to adapt to change one Fujifilm excelled while Kodak faltered and eventually declared Chapter 11 Bankruptcy in 2012 Running head: KODAK and FUJIFILM 3 The Eastman Kodak Company, which is better known as Kodak was established in April 1880 by George Eastman in Rochester NY. The company got its start by first manufacturing dry plates for sale to various consumers. (Kodak Eastman, 2013). George Eastman was an innovator in the field of photography and was dedicated to making photography an everyday affair and was even quoted to say that he wanted to make the camera as convenient as the pencil, (Kodak Eastman, 2013) In September 2012 Kodak reorganized into three segments: Digital Printing and Enterprise (DP&E); Graphics, Entertainment, and Commercial Films (GECF); and Personalized Imaging and Document Imaging (to be sold), (Finance, 2013). Kodak has effectively ceased production of its Kodachrome color film line, digital cameras and pocket video cameras. This follows a decision in early 2012 to file Chapter 11 bankruptcy. Fuji Photo Film Co., Ltd (Fujifilm) is a Japanese based company and was established...
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... 1 Kodak and Fuji Film BUS 302 February 2, 2013 Running head: KODAK and FUJIFILM 2 ABSTRACT Eastman Kodak Company and Fujifilm are competing corporations in the photography supply and equipment industry. When the industry changed both companies were impacted, but due to differing management practices and ability to adapt to change one Fujifilm excelled while Kodak faltered and eventually declared Chapter 11 Bankruptcy in 2012 Running head: KODAK and FUJIFILM 3 The Eastman Kodak Company, which is better known as Kodak was established in April 1880 by George Eastman in Rochester NY. The company got its start by first manufacturing dry plates for sale to various consumers. (Kodak Eastman, 2013). George Eastman was an innovator in the field of photography and was dedicated to making photography an everyday affair and was even quoted to say that he wanted to make the camera as convenient as the pencil, (Kodak Eastman, 2013) In September 2012 Kodak reorganized into three segments: Digital Printing and Enterprise (DP&E); Graphics, Entertainment, and Commercial Films (GECF); and Personalized Imaging and Document Imaging (to be sold), (Finance, 2013). Kodak has effectively ceased production of its Kodachrome color...
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...Case Study #1 – Sunspot, Inc. 1. Strategic alliances among suppliers can be beneficial among companies that share the same vision. Some benefits of an alliance include lower total costs, reduced time to market, improved quality, improved technology and improved continuity of supply. In the case of Sunspot, Inc. the CEO, Ms. Monica Foltz can look to adopt and create strategic alliances with suppliers for parts to manufacture sunglasses. Overall, Ms. Foltz can hope to lower costs of sunglasses which may help to garner more market share and increase her customer base. She can also direct more of her attention on future development, new products, R&D and innovation because an alliance allows for a shared vision among the supply base and openness that is progressive towards current demand. 2. Disadvantages of alliances may include many factors. One such factor is in order to have an alliance, the firm must have executive level commitment. Without the commitment of top level executives alliances can be hard to get long term vision shared between alliances. Two firms need to pledge to cooperate for long term success and be open about cost, long term objectives, technology, and the overall supply chain. The relationship must be adaptable through changing economic struggles and advantages, environmental issues and competition. Another disadvantage of alliances may include the fact that they are resource intensive. On top of all of these factors, alliances take a...
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...Eastman Kodak At one time, Eastman Kodak dominated the film industry. Unfortunately for them, Eastman Kodak did not respond to the fast paced growth in the tech industry. The innovative staff at Fuji introduced a new product that decreased Eastman Kodak’s market share by a large margin for the first time. Their market share went from $85 per share to $71 per share, which resulted in a 16% decline. Eastman Kodak’s market share continued to decrease while the technology market as a whole was increasing tremendously. The obligatory changing of the organizational architecture for Eastman Kodak was in response to the immediate decline in market share, earnings per share, and lack of response to advances in modern technology. Eastman Kodak realized that they needed to restructure and respond very quickly but they were unsuccessful. Ultimately, Eastman Kodak was left in the dust. Before the distinct advances in technology, Eastman Kodak had a centralized decision method. This requires lower level management decisions to go through top management before any changes could be decided or implemented. Although the top down decision-making can control the company in positive ways, this method requires a tremendous amount of time because of the amount of approvals required. Eastman Kodak realized that they needed more opinions and ideas flowing around the company in order to stay competitive in the tech market, so they...
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...Managerial Economics Case Studies Institutional Affiliation Managerial Economics Case Studies #1. Three aspects of organizational architecture The three vital components of organizational architecture are: a) assignment of decision rights; b) methods of rewarding individuals; and c) structure of systems to evaluate the performance of both individuals and business units. First, assignment of decision rights involves giving the responsibility of decision-making to top-level executives. It is imperative that an organization is able to delegate the duty of making a decision to a manager who has relevant information and knowledge on the internal and external factors that affects the operations and goals of the organization. The architecture of an organization and its environment will determine who will be the decision-maker for the company. In some organizations, the top-level executive may have them most relevant information and thus, a centralized decision-making process can be adopted. There are instances when the lower-level employees may have the most relevant information, thus, decision-making rights become decentralized. Second, methods of rewarding individuals determine how the organization will provide incentives to its employees. Organizational goals and employee’s productivity play great roles in determining a scheme of remuneration. Some organizations repay their employees through financial rewards such as the monthly wage, and cost of living allowance, and other benefits...
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...Bankruptcy filing of Kodak Whenever a big corporation files for bankruptcy, many investors question the move. After the recession, many big corporations like Lehman Brothers etc filed Chapter 11. A chapter 11 case starts when the company voluntarily files for a petition in bankruptcy court. When the company has many outstanding, it prefers to file for the case. It was no big surprise when Eastman Kodak, 131 year old company that was founded by George Eastman filed for bankruptcy protection in 2012 under chapter 11 of US bankruptcy code in Southern District of New York. It was pioneer in introducing first automatic snapshot camera. It was the first company that provided the individuals a solution for taking their own photographs and not depends on professionals. The term ‘Kodak Moment’ became synonymous with taking pictures of precious moments and having pictures of life time of memories. Reasons for Bankruptcy An attempt is made to understand what lead to the financial distress in the company. The top management of Kodak could never innovate. Though they were pioneers in launching the concept of self photography, many competitors developed better products and took the market share from the company. The company thought that its customers would remain loyal to it but when new products and new technology was offered in the market, it lost its market. The company did not pay attention to the improvement in the technology. When digital cameras came into existence, Kodak did not improve...
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