...Kodak and the Digital revolution 1. Evaluate Kodak's strategy in traditional photography. Why has the company been so successful throughout the history of the industry? Kodak is known for providing the quality services, innovative products offering the best quality to customers. It developed competitive advantages and satisfied its customers during many years. Kodak has evolved different strategies in the field of traditional photography where it brought innovations and modification. Kodak has a successful history in the industry. According to the case study, the main reason behind the success of Kodak in the industry is its quality. 2. Compare traditional photography to digital imaging. What are the main structural differences? Will digital imaging replace traditional imaging? How have value creation and value appropriation changed in digital photography relative to traditional photography? The digital image consists of a defined set of points called pixels. The traditional image on sensitive material also consists of points or grains of metallic silver. Contrary to the traditional photography, the digital images aren’t using any consumable any more, as the digital image are stock on a memory stick. Digital imaging will replace the traditional photography, because the quality of the digital technology is growing a lot, and digital picture are in line todays need. The demand for the digital products is getting higher day by day. Therefore, it can be very easily...
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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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...Case 1 – Kodak Idendity Industry, Product segments and Value chain The industry is Global photography industry. In the case mentioned that Kodak is a major multinational organisation, was listed on the New York Exchange TEMPLES Factor Issues Nature of impact (+/=/-) Assessment of impact (H/M/L) Technology • Digital technology made the growth of digital photography + H Economic • Impact of recession on consumer spending - M Market • Changing purchasing traditional camera to digital camera • Price competition to gain market share • Market share of photography product declined due to digital photography - - - H H H Society • Change in consumer purchase from traditional photograph to digital photography - H 5Q-Pursued strategy Business Strategy using 5Q approach Examples of how Kodak has been pursuing the corporate strategy Growth-Yes Withdraw: US Subsidiaries filed voluntary petitionfor Chapter 11 business reorganisation to enable Kodak bolster liquidity and sell off non-strategic intellectual property, so that 1) Kodak can focus on its most valuable business units. 2) The process will allow Kodak to continue normal business operation while it attempts to emerge a profitable a sustainable enterprise 3) The Bankruptcy was a step in the transformation in order to build the strong possible foundation for the Kodak of the future. Product Camera, film but focus on printers (consumer and commercial printer)...
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...KODAK AND THE DIGITAL REVOLUTION 1. Why was Kodak able to navigate the shift from black and white to color photography more successfully than the shift from chemical to digital photography? Kodak’s leadership during B&W photography age came from marketing and relationships with retailers. Customers preferred Kodak to other manufactures, some of which who had better products even, because they were satisfied with Kodak’s offerings and didn't feel the need to pay for enhanced products. The low cost cameras fueled Kodak’s growth and profits which helped the company significantly in being able to invest in R&D to develop color film. This was a relatively easy shift for Kodak, compared to its competitors who were not able to make similar investments in R&D. Despite Kodak’s efforts in transforming it into a high-tech company, by expanding markets, re-thinking product development, investing heavily on research and forming alliances with computer executives in the 1990’s, under Fisher’s leadership, Kodak was unable to change the culture of the company from its razor-blade, low cost model. While Kodak’s core business of film faced no competition, they were late entrants in the digital space. Their efforts in trying to do too much was unsuccessful in shifting from chemical to digital photography. 2. Which companies have benefited most from the shift to digital photography over the past 10 years? Over the past 10 years, companies such as Sony, Canon, Nikon, Fuji and...
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...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 very unique management styles and ability to adapt to change one Fujifilm excelled while Kodak faltered and eventually declared Chapter 11 Bankruptcy in 2012. History of Kodak George Eastman founded Kodak, in 1888. The company’s early success was based on the new technology for cameras. The camera simplified the photo taking process (Williams, C. 2013) Kodak’s main focus was photography and imaging. They had an array of products that ranged from photography equipment, film, paper and color chemicals. In the1980’s, Kodak’s market share reached 90%. This was a very special moment in the company’s history. Kodak developed the first concept of the digital camera in 1975. Their executives could not imagine the world without traditional film; unfortunately, the idea was dropped because they feared it would threaten the company’s film business (Snyder, 2013). Digital cameras would become common; the technology started to spread and film sales dropped considerably at the late 1990’s. Kodak made a slow transition to digital technology. Unfortunately, their competitors adapted to change. This lead to Kodak’s loss of market shares both in the United States and worldwide. The company filed for Chapter 11 bankruptcy protection. After one year of continuous battle to keep the company “alive”, the...
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...(01608844) Kodak Case Study 1. What was the basis for Kodak’s success in analog or film photography, and why was it able to maintain its leadership position for so long? In 1884, Kodak roll of film was launched. This was the future innovative product in film business in that era. The first Kodak camera was introduced in 1888. The company distinguished itself and advertised products with the slogan “You press the button, we do the rest.” Kodak focused on customer needs by developing convenient-to-use products. For mass production strategy, the company sold its products by using a razor-blade strategy: low-price camera, but high-profit of film repurchase and having the strong relationship with retailers for selling products and printing photos with Kodak paper. This meant that the company offered customers with complete range of service from photo capturing to photo finishing, resulting in customers’ preference for Kodak rather than higher-quality products from competitors. In order to increase the growth, Kodak also continuously did the research. The company invested in R&D for color film and new cameras to medical imaging and graphic arts. As the result, this technological strength prevented the entry of competitors in the market. Kodak had the largest market share in film market and camera sales by 1976 before the digital era. 2. What are the key ways in which the structure of digital imaging is different from analog or film photography? In photography industry, I would...
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...Management Comparison of Kodak and Fujifilm BUS302 A Management Comparison of Kodak and Fujifilm Description of the History and Core Businesses Both Kodak and Fujifilm will be examined to identify the similarities and differences in their business successes and failures. Each business will be analyzed to develop a more complete understanding of how the businesses were formed and the paths each has followed to arrive at their current market positions. Kodak Eastman Kodak was started in 1888 when the first Kodak camera introduced and was available for sale to the public. The company was started by George Eastman in Rochester, NY, when Eastman was in his mid-twenties. George Eastman grew up poor and was a high school dropout, but that did not stop him from making money and supporting his widowed mother and two sisters by the time he was 14 years old (History of, 2013). When Eastman was 24 years old, he had planned a trip to Santo Domingo, and had an idea to record the trip. Eastman purchased a large, heavy camera that was as big as a microwave (History of, 2013). Eastman never made the trip to Santo Domingo, but he did become obsessed with photography, and how he could make it simpler to understand. Before Eastman Kodak was formed, George Eastman had started a company, making dry photographic plates, which later lead to the idea of a convenient, simple to use camera that would become known as the Kodak. After the Kodak camera was introduced...
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...Eastman Kodak Company (Est . 1889) Eastman Kodak Company, also known as Kodak, is an American multinational imaging and photographic equipment, materials and services company headquartered in Rochester, New York. It was founded by George Eastman in 1889. At one point of time, Kodak held a leading position in the photographic film market with a 90% share in the United States. However, the company failed to compete effectively with the advent of digital photography in the 90's and its finances started deteriorating. In January 2012, Kodak filed for bankruptcy and is the process of winding down its assets. Organizational Birth Kodak was setup by George Eastman in 1889 and followed the strategy of selling photographic equipment at affordable prices while making margins of photograph development equipment, the film, chemical and photo paper. In the initial lifecycle, it was the leader in developing innovative line-up of cameras. In the run-up till the end of the 2oth Century, Kodak became a name synonymous with innovation, and in general, photography. The phrase 'Kodak Moment' became widely used in the public domain and became associated with capturing the precious moments that the era of photography had come to innovate. Mission Statement Kodak stood for innovation in digital cameras making them affordable to buy for the common public. It innovated its equipment and made its profit from selling photograph developing materials. Survival strategies Initially Kodak manufactured...
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...products a single brillant idea blossomed; pictures. George Eastman, an American inventor and philanthropist in the 1880‘s with a passion for photography had a dream.1 At the time photography was a very rare past time that only professionals had the knowledge and equipment to partake in. Eastman’s vision was to provide photography for the everyday consumer at low cost. Eastman accomplished this by starting the Eastman Dry Plate Company, which was a global leader in mass producing dry plates for many years. Within four years of of the commencement of research, negative paper was introduced and would be used for the next century. Film became so efficient and cheap, Eastman invented the first commercial camera called the “Kodak” which revolutionized the “point and shoot” concept as the world know its today. 1 The Kodak camera was so popular that Eastman decided to integrated Kodak into the company name. The newly founded and named Eastman Kodak Company in 1892 became so big they had to expand their facilities to New Jersey for access to new trade routes. This was the beginning of Kodak and the start of photography. Kodak’s history is mainly responsible for making the Kodak name what it is today. The initial products invented by Kodak like the camera and film opened doors and provided a foundation for innovation and success in the photography and developing industry. Furthermore, Kodak’s business model, although a failure, taught the world of business how to run a business. In today’s...
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...Kodak vs. Fujifilm Me Professor Swinney Strayer University January 19, 2014 Abstract I began writing to show how business can quickly go out of business, if the owners do not keep an eye on its public. Kodak failed to meet its customer’s needs, so the company could not keep up with demand. I have gone shopping and found myself searching for an item I have seen advertised in another store. Only to be told that the item is out of stock or the store does not carry that product. This is what happens when supply does not keep up with demand. The company goes under, under the strain of their competitor’s pro activeness. Kodak needed to make changes sooner rather than later when their management made decisions that could help or hurt Kodak. Fuji constantly made changes and made the necessary changes to meet their customer’s needs. As a business owner being able to reach and understand each customer will help in sells so profits will rise. Many people continue to shop where products are cheap and convenient. Staying in business is like knowing and meeting different people with different wants and needs and then helping them with finding an inexpensive means of finding them. That is the nature of business and a way to keep a customer satisfied. Building a relationship with customers is the most important aspect in business. If the business does not speak directly to its customer’s...
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...Assignment 1: Kodak and Fujifilm Gyongyi Molnar Professor David Penkrot Strayer University- BUS 302 November 3, 2013 Describe the history and core business of each company. Kodak, formerly known as Eastman Kodak Company, was founded by George Eastman in 1888. The company’s early success was based on the launch of its revolutionary camera which simplified the photo taking process (Kodak, n.d.). Kodak’s main focus was photography and imaging, and its products ranged from photography equipment to film, paper and color chemicals. By the 1980’s, Kodak’s market share reached an amazing 90%. Although they developed the basic technology for digital cameras in 1975, the idea was dropped due to fear that it would threaten the company’s film business (Williams, 2013). Because Kodak executives could not imagine the world without traditional film, they failed to realize how fast digital cameras would become common; the technology started to spread and film sales dropped considerably at the late 1990’s. The slow transition to digital technology, denial of the declining film usage, and competition from other companies eventually lead to Kodak’s loss of market share both in the United States and worldwide, placing Kodak at a 7th position. In January 2012, the company filed for Chapter 11 bankruptcy protection, and a year later the Court approved financing for them. Kodak sold many of its patents to a group of companies such as Apple, Google, Microsoft, and others. Fujifilm, a Japanese...
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...EASTMAN KODAK[1] 1. The Beginning Eastman, a genius and high school dropout, invented a dry-plate process and established (1880) a factory at Rochester, N.Y., for making dry photographic plates. The Eastman Dry Plate Company became Eastman Kodak in 1892. George Eastman came up with the name Kodak himself, after experimenting with many names starting and ending in K, which he considered to be a “strong, incisive kind of letter”. Kodak is now a world renowned company, which ranks as a premier multinational corporation and one of the 25 largest companies in the United States. George Eastman was born in Waterville, New York on July 12, 1854 and moved with his family to Rochester, New York in 1859. He dropped out of school in 1868, at the death of his father. He was poor, but even as a young man, he took it upon himself to support his mother and two sisters, one of whom was severely handicapped. He began his business career as a 14-year old office boy in an insurance company and followed that with work as a clerk in a local bank at age 19. He studied accounting at night to be able to advance in his job. His passion for photography began with the purchase of his first camera in 1878. The invention of the dry-plate process took one year and many sleepless nights trying different formulas. According to his mother, sometimes he was too tired to undress and slept on the kitchen floor. In 1879 he filed first patent for a machine that coated dry photographic plates and founded...
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...Kodak vs Fuji: Who wins? Katie E. Draper Strayer University Management Concepts Dr. Thomas A. Swinney March 18, 2014 Abstract Kodak and Fujifilm shared the market of photographic films, digital cameras, supplying various products for the photography sector, and medical imaging equipment. Over time, both companies had to come up with new and improved products that would keep the consumers wants and needs satisfied. Both companies had their very own style of management, which allowed them to advance with the innovation of new and improved technology. Kodak, until January 2012, was the leader in the photographic and film market. Kodak’s unwillingness to adapt to the digital age gave Fujifilm an advantage. Technical advances gave Fujifilm a competitive edge. Fujifilm took advantage of the changing market. When it comes to ethics and social responsibility the companies are for the most part on the same level, but have some differences. Adapting to the changing market conditions affected each company’s management differently in many ways, and affected the growth and innovation process for both companies. After researching both companies the determination that all companies should be diversified in some way, in order to keep up in the changing market and economy is crucial for growth and success. Kodak vs Fujifilm: Who Wins? Fujifilm. Kodak was the innovator in the photography business. Their development overwhelmed the United States and also different parts...
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...Kodak Summary 1. Evaluate Kodak’s strategy in traditional photography. Why has the company been so successful throughout the history of the industry? Invented a user-friendly product („easy to use as a pencil“) First to enter market Kodak had good marketing and good relationships to retailers. Razor-blade strategy worked out very well. Good R&D in color films - Photo finishing process became industry standard. Simply way bigger then competitors (1976 - 90% film market , 85% camera sales in US) 2. Compare traditional photography to digital imaging. What are the main structural differences? Will digital imaging totally replace traditional imaging? How have value creation and value appropriation changed in digital photography relative to traditional photography? 3. Evaluate Kodak’s response to Sony’s introduction of the Mavica in 1981. Was it appropriate? Kodak extended its portfolio to many other sectors (IBM copier service, Clinical Diagnostics, Mass Memory, Bioscience, Drug Company) Invested a lot in R&D toward digital sector- (invented first digital camera) Linked the digital and the Film sector - Defense Inertia First products in the digital-film business: Photo CD + Stand-alone Player Created a electronic photography department in 1987 (6 years later then Sony) Developed every product in the digital imaging to gain market shares 4. How would you assess Fisher’s attempt to transform Kodak? Why did it fail...
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...The Rise and Fall of Eastman Kodak, an Emblem of American Business Excellence Executive Summary With the slogan "you press the button, we do the rest," George Eastman put the first simple camera into the hands of a world of consumers in 1888. In doing so, he made a complicated process easy to use and accessible to nearly everyone. Since that time, the Eastman Kodak Company has led the way with an abundance of new products and processes to make photography simpler, more useful and more enjoyable. Its reach increasingly involves the use of technology to combine images and information--creating the potential to profoundly change how people and businesses communicate. Kodak continues to expand the ways images touch people's daily lives. The company ranks as a premier multinational corporation, with a brand recognized in virtually every country around the world’’ (kodak.com). However, despite numerous efforts in acquiring new competences and turn around its business model, Kodak has so far failed to impress consumers and stakeholders alike. Facing stiff competition and shrinking profit margins, Kodak seems not able to find its rightful place in the new digital age. This report will shed some light as to why Eastman Kodak has been struggling for years and how it could overcome the challenges it currently faces. kodak manufacturing plant around 1930 RECENT PAST Kodak being a centennial company, it was necessary to take as much distance as possible when trying to analyze its...
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