...To: Kelly Johnston, CEO From: Chief Restructuring Officer In Reference to: Executive Summary: * Eastman Kodak is an industry leader in developing, manufacturing, and marketing different imaging products for leisure, commercial, and medical use. * Recently, Kodak attempted to reorganize its architecture * 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: * Restructuring costs * High competition * Rapid growth * Low profit margins. * Our company’s architectural restructuring plan was motivated by: * Competition * Our virtual monopoly was eroded through the entry of other firms. * Technological Advancement * Advances in technology have allowed firms to produce new products faster. * Changing Market Environment * These changes have caused us to fall from a once prominent monopoly in the film industry, to such a small player in the digital industry. * To win back market share and increase profits, Kodak did a mass restructuring that failed to provide the expected results. * Decentralize Decision Making * Altering the decision making process from a top-level approval requirement to a more decentralized decision making process of small business units and managers...
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...Kodak 1. Marketing Mix –the 4P’s- Kodak’s pixpro FZ51 is the perfect camera to capture all the special beautiful and happy moments in life. With its perfect slim design, it can be use anywhere and at any time. Captures high quality photos without missing any detail with its 16MP CCD sensor and 5x zoom. (1) Product: Price: $.76.00, $.79.99, $.89.99 Place: www.Amazon.com, Best Buy, Wal-Mart Promotion (1 Ad and 1 Promotion) Add: Promotion: Another great promotion Kodak offers for this camera is that it can take up to 200 pictures without a camera flash drive. (1) This camera’s seller point is its rechargeable battery, no more purchasing of AA’s or AAA’s, which can get quite costly and bothersome. Wal-Mart also offers Kodak PixPro with an 8GB camera flash drive for a total of $.91.29, saving the customer $.4.39 if bough separate. (2) In the past, Kodak has also used movie- themes promotions and sweepstakes prizes by using a variety of media outlets. For example, when Pirates of the Caribbean came out, Kodak EasyShare Gallery offered consumers free movie tickets with a $.20.00 purchase at KodakGallery.com. They also offered a chance to win Kodak products or a trip to Disneyland by an online sweepstakes whom asks consumers to participate in a photo treasure hung. (3) STP: Every business has to focus on all the elements that will affect the company, or a product before putting it in the market. There are 6 elements, which include:...
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...Eastman Kodak Company es una multinacional de EE.UU. que produce imágenes y material fotográfico y equipo. Bien conocido por su amplia gama de productos de película fotográfica, Kodak es reorientar en dos mercados principales: la fotografía digital y la impresión digital. Políticos Ley de EE.UU. exige que todos los derechos de autor tiendas de fotografía que se abstengan de impresión o la liberación de las imágenes digitales tomadas por fotógrafos profesionales, sin un comunicado de los derechos de autor (2005, 2005). Las imágenes tomadas por fotógrafos aficionados pueden encontrar dificultades en hacer que sus imágenes de aspecto profesional en la impresión, por lo que afectan a las ventas de impresión fotográfica. Económica En 2002, la creciente demanda de cámaras digitales provocó la reducción de 2,6% en las ventas tradicionales de película fotográfica, esta tendencia se espera que continúe en el futuro, las impresiones hechas de películas tradicionales disminuyó en 700.000 durante el mismo año. Las ventas de cámaras digitales en 2002 ascendió a 2,96 mil millones dólares USD, tomando una porción considerable de los ingresos totales de la industria. Disminuye el precio de la cámara digital que hace muy asequible para los consumidores más, lo que a las demandas aún mayores. Socioculturales Hombres (58%) tienden a comprar cámaras digitales más que las mujeres (48%), las mujeres, especialmente las que tienen hijos sin embargo, son los que utilizan las...
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...Name: Professor: Class: Date of submission: Turnaround strategy for Kodak Introduction The rapid changes in business environment and increased domestic and global competition have made the business environment to be more unstable. Organizations of different sizes are struggling to survive if they do not change according to the changing business environment. Many organizations have realized the need to change in order to survive in the changing business environment. Businesses which do not change are getting into trouble due to some factors some of which are internal while others are external. The businesses can easily get a turnaround if they properly diagnose the symptoms leading to failure and take collective action. The concept of turnaround can be described as taking action when a firm is facing a financial disaster or to prevent the firm from having a financial disaster. Turnaround does not only involve transforming which has declined but also those whose management fell the results are not satisfactory (Mason & Gerard, 160). Kodak one of US most recognized company which has been in operation for over a century has been struggling for years due to its slowness in adapting to the changing business world. The company had been one of the leading image solution providers in the world for many years. Established in 1880 by George Eastman Kodak become one of America’s well known company by helping to establish the market for camera film and the becoming the market...
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...synonym with Eastman Kodak Company, commonly known as Kodak. Kodak was born in 1880s in Rochester (New York, USA). This organization was developing with American technology and was founded by George Eastman, who succeeded in bringing photography to the mainstream with very cheap cameras in 1888. The main product sold by this company is concentrated with imaging and photography. The mission of this company produces a new products and processes to make photography simpler, more useful and more enjoyable. As we know, the images used in a variety of leisure, medical, business, entertainment, social and scientific application. Until now, the picture is the important thing and necessity for every person. From the late 1800s to the 1980s, Kodak was dominated the consumer photography market winth an innovative and admirable icon of American industry. But today, Kodak the firm which brought photography to the mases, filed for bankruptcy protection. The main reason Kodak filed for bankruptcy is this firm was failed to compete with other digital camera maker such as Canon and Nikon. The impact of this crisis to the company, Kodak was selling or licening around 1100 of its digital imaging patents that around 10% of its library. Kodak sold its patents to a famous group companies like Apple, Google, Samsung and Microsoft to get income to pay all company debt. Then, this company also got impact to their employees. Kodak just had 17000 staf in worldwide, but before this Kodak had 63,900 employees...
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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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...Eastman Kodak Company: Funtime Film 1. Cuáles fueron las causas de la pérdida de mercado de Kodak y cuál sería el desarrollo del mercado si Kodak mantiene el “status quo”? La participación de Kodak en el mercado de Estados Unidos disminuyó de 76% a 70% en 5 años, debido principalmente a que sus competidores (Fuji y Konica) ofertaron versiones de los productos a bajo precio. Fuji comenzó su seria incursión en el territorio de Kodak cuando captó la atención de los consumidores convirtiéndose en la película oficial de los Juegos Olímpicos de 1984, lo cual implica que la competencia estaba atacando exactamente el mismo mercado objetivo. Además ingresaron nuevos competidores como Polaroid. Adicionalmente, los competidores empezaron a ganar participación a través de marcas propias, que es un segmento en el que Kodak no puede vender. Finalmente, y teniendo en cuenta que los consumidores tienden a considerar las películas como un commodity, Kodak no está ofreciendo ningún factor de diferenciación que le permita justificar un precio más alto y mantener su porción de mercado. De mantener el “status quo” es probable que Kodak no logre asegurar la fidelidad de sus consumidores (el 50% de los compradores es “leal a Kodak”), y que cada vez más de los consumidores que cambian de marca o deciden por precio se inclinen por la competencia, disminuyendo así la participación de mercado contra competidores que atacan con una calidad similar los diferentes segmentos. Considerando...
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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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...S w W11226 ESTIMATING DEMAND IN EMERGING MARKETS FOR KODAK EXPRESS David M. Currie and Ilan Alon wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-07-08 Anna Johnson gazed at the information she had accumulated on various countries and wondered how she could use it to estimate the demand for Kodak Express (KE) outlets. She had learned from the Kodak market research department that demand for KE outlets depended on household income. To support one Kodak Express outlet, one of the following was needed: one million households with annual incomes equal to or exceeding the equivalent of US$15,000, two million households earning the equivalent of between US$10,000 and US$14...
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...his plate-coating machine. An American patent was granted the following year. In 1880, he began the commercial manufacture of dry plates. Success of this venture so impressed businessman Henry A. Strong, that he invested some money in the infant concern. On January 1, 1881, Eastman and Strong formed a partnership called the Eastman Dry Plate Company. Late that year, Eastman resigned from his position at the Rochester Savings Bank to devote all his time to the new company and its business. While actively managing all phases of the firm's activities, he continued research in an effort to simplify photography. In 1883, George Eastman announced film in rolls, with the roll holder adaptable to nearly every plate camera on the market. With the KODAK camera in 1888, he put down the foundation for making...
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...GallowayStrayer University08/05/2014 | | Eastman Kodak Company and Fujifilm are competing corporations in the photography industry. When the industry changed both companies were affected, but due to very different management styles and ability to adapt to change Fujifilm took a lead while Kodak fell behind. 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. 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 prosperous, the court approved financing for them. Kodak sold many of its patents to groups of companies...
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...Eastman Kodak Products External analysis of Eastman Kodak Introduction Kodak is the market leader in providing photographic products and services to consumers and commercial customers around the globe for memories, entertainment and information. The company brings inventive and modern products to the market that allows people to take, make and share pictures and experience the magic of photography (History of Kodak, 2008). As the world leader, Eastman Kodak is always looking for talented people. Kodak has continued to expand the ways and images touch people's daily lives. Kodak is a top supplier of innovative solutions for digital, conventional and blended print production environment (History of Kodak, 2008). Eastman Kodak Company is an American multinational public company which produces imaging and photographic materials and equipment. It is known for its extensive variety of pictorial film products. Eastman Kodak is actually concentrating on two major markets; the first is digital photography and the second is digital printing (About Kodak's Graphic Communications Group, 2008). In Rochester and Jamestown New York, Kodak was founded by George Eastman and businessman Henry Strong. George Eastman as president purchased the stock of American Aristotype Company. In the year 1982, the Eastman Kodak Company was founded. The company is incorporated in New Jersey but has its offices in Rochester, New York. The slogan, You press the button; we do the rest, was given by the founder...
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...1101IBA- Management Concepts Assessment 2: Report Report on Strategic Management at Eastman Kodak Prepared by: Alisiya Bell S2944536 Due Date: Tuesday, 23 September 2014 Word count: 1426 Introduction: Once a great leader and legendary brand in the photographic film industry, Eastman Kodak is now fighting to recover from a tech revolution that is strangling its core business. Kodak Chief Executive Antonio M. Perez is on the road to innovation. Taking in to consideration of the mistakes and lessons learnt from the past, Perez is reinventing the company’s core business model. As Perez reassembled the business he replaced a lot of executives to get the organisation on track. While Perez’s innovation of the organisation could be argued that this will help Kodak recover, there are also many substantial problems that could occur. One major problem for Kodak is the lack of strategic management. Although there are many various ways to define strategic management, David, F.R (2009) defines strategic management as a “continuous process of strategic analysis, strategy creation, implementation and monitoring, used by organisations with the purpose to achieve and maintain a competitive advantage.” Problem Identification: All main business ideas for Kodak seem to come just from the Chief Executive Perez. Leaving a lot of the main strategic planning just up to him. Kodak has previously displayed what an organisation with the absence of strategic management can look...
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...CASE ANALYSIS: Eastman Kodak Company Sara Seed March 2, 2006 BUSA 499: Strategic Management Pacific Lutheran University Dr. Pham Seed, 2 CASE ANALYSIS: Eastman Kodak Company Executive Summary The purpose of this report is to analyze the strategic position of Eastman Kodak Company (Kodak) and discern any sustainable competitive advantages held by the company. Beginning with a discussion of Kodak’s industry and commentary on the political, economic, social, and technological environment in which the company operates, the report then narrows to focus on Michael Porter’s Five Forces: barriers to entry, threat of suppliers, threat of buyers, threat of substitutes, and rivals. Once a thorough analysis of the industry and its environment is complete, it is necessary to detail Kodak’s value chain and identify resources and capabilities specific to the firm. Finally, these core competencies are subjected to a VRIO analysis to determine if they are valuable, rare, and not easily imitable. If the Kodak has the organization in place to utilize these resources and capabilities, they have a sustainable competitive advantage. The Company Kodak Company was founded in 1880 in Rochester, New York and engages in the imaging technology industry. The company operates in four segments: Digital and Film Imaging Systems, Health, Commercial Imaging, and Graphic Communications. For most of its history, Kodak focused on film technology and became a world leader in film and film...
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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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