...MANAGING CHANGE 300 QUESTION 1 Discuss the reason of Kodak’s failure in the “digital revolution” by evaluating the nature of the digital products market Kodak is a 133 year old technology company, and was a world leading in camera film for decade. Today, Kodak is struggling as its facing bankruptcy, and the share price has fallen from as high as $94.75 per share in 1997 to as low as less than 30 cents per share in 2012. This happened as of due to the rise of competition in technology/camera industry, such as digital revolution, people are not using roll film anymore, people are using digital camera, even mobile phone has camera itself. Furthermore, Kodak is change slowly, does not agile, and quick enough. Although Kodak was a leading brand in camera, and had huge image, but it is lacking on the simplicity, means people prefer using digital with memory card as their “film”, and also it is simple, because they do not have to buy the film as the old camera does. In digital revolution, everything is changing. Not only technology, even newspaper and magazines affected, Kodak was one company that affected by digital revolution. However, Kodak does not respond to the changes, moreover Kodak tried to be an innovator in digital camera. Not only slow to change and adapt to change like competitors (Fujifilm, IBM) but also Eastman-kodak invested on digital printers and digital camera at the wrong time when the printing business in declining industry, which is worked. However, they...
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...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 had several core competencies to its advantage. Of primary importance were its “user-friendly” qualities, cost, extensive advertising that helped built its name; perceived quality of its products and its customer focus that lead to strengthening an important core competency i.e. customer satisfaction. Kodak’s leadership also came from marketing and its relationships with retailers (for shelf space and photo-finishing) and also its investments in R & D. During its heyday, its technological capabilities and its rapid design to market cycle times were success factors. Kodak used a razor-blade strategy wherein film was regarded as the consumable so it sold cameras for low cost and profited from increased sales of films. 2. Compare traditional photography to digital imaging. What are the main structural differences in the industry? (Use the 5-forces model) | Traditional | Digital | Rivalry among competing firms in industry | Initially none until 1976 when Fuji came in | High- many companies producing different brands at all price category | Bargaining power of suppliers | Low – since Kodak was their main consumer | ...
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...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), packaging and workforce software since 2005 Market Georgraphic market : Global market Customer marekt: Business and End consumer Generic strategy Differerentiation: because of its strong brand name and product innovation before 2005, after 2005, it is focus strategy as it focus on consumer...
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...box camera went on the market with a price of $1 1935: Introduced color film 1960: Brought the Instamatic camera to the market 1970: Major sales growth for Kodak. Concentrates on film and basic cameras 1980: Fuji emerges as a serious competitor 1994: Kodak abandoned its non-imaging health-related businesses began to invest in digital imaging products for medical practice 1997: Kodak was a high-cost manufacturer with a growing portfolio of digital products which was losing hundreds of millions of dollars annually 1997: Restructuring that eliminated 19,000 jobs and cut more than $1 billion from annual costs 1999: Kodak entered the digital radiography market 2001: Kodak is pushing aggressively into China, an important growth market 2003: Carp unveiled the plan to invest $3 billion in the next three years in digital products by cutting dividends by 72% - to 50 cents per share 2004: Kodak announced that it would stop selling traditional film cameras in Europe and North America, and cut up to 15,000 jobs 2005: The Kodak EasyShare-One Digital Camera, the world’s first Wi-Fi consumer digital camera capable of sending pictures by email, was unveiled 2012: Kodak filed for Chapter 11 Bankruptcy Protection The company's stock was delisted from NYSE and moved to OTC exchange. Following the news it ended the day trading down 35% at $0.36 a share 2012: Kodak announces it will exit the digital image capture business Kodak Products • Four distinct sub-product – – – – Digital cameras Home...
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...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 like to divide into 3 processes: image capturing, digitalizing, storing and imaging. In term of film photography, its components are film camera as the image capture and film as the storage. Then, the captured film will...
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...to drive Digital Camera Market in India, finds Netscribes Netscribes (India) Pvt. Ltd. launches a report on the Digital Camera Market in India 2012 as part of Netscribes’ Information Technology Series. Mumbai, India – January 18, 2012 – Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its report Digital Camera Market in India 2012. Adoption rate of digital cameras in India is rising steadily due to rapid growth of consumerism and is anticipated to witness a dynamic growth in the near future. Currently, vendors in the market offer their products under the ‘Point and Shoot’ and ‘DSLR’ segments. Primarily, increasing disposable income especially amongst the youth working class and a surge in travel plans amongst consumers is expected to further increase the demand for digital cameras. Upcoming innovative and technologically advanced products such as mirrorless cameras and 3D cameras are likely to gain acceptance amongst consumers which in turn will provide a boost to the Indian digital camera market. The report begins with a market overview, which provides an insight to the overall digital camera market. It describes the primary reasons which are propelling the market forward. The section also talks about the prevailing competition amongst major players and the market size and growth figures in India in terms of revenue as well as total camera units. This section also features Porter’s five forces analysis of the digital camera market...
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...film camera, and this was the main focus of Kodak during that time. When Fujifilm joined the US market, their target strategy is pried its film just a little bit lower than Kodak’s, since they did that, their market share increased form 10% to 16%, they made a price war to Kodak as their competitive advantage. Still, many people is US preferred use Kodak rather than Fuji, but once consumer tried the Fuji film, they found it was similar products as long as they are cheaper than Kodak’s. Since Kodak should react to the price war, as as Salomon Smith Barney analyst Jonathan Rosenzweig figured that “for every 1 percent cut in Kodak film prices, a 1 percent drop in earnings per share results.” When the market is shifting form film camera to digital, what happens to Kodak? Since Kodak was failure to innovate, when the market was changing, they react themselves very slow. In 1975, Kodak electrical engineer, Steve Sasson invented the first digital camera; on the other hand, the management of Kodak decided to keep this new product, because this digital camera will influence their major products- the film. Later Sony make the digital camera but with high cost. Since the cost of the digital camera was decreasing, more people were willing to purchase digital camera and when Kodak realized the market transforming, which was too late. After Kodak joined the digital revolution, they made several series of digital camera, according to Stephen Shankland (2008), “in the total camera market;...
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...Kodak’s current position in digital imaging? Would Kodak’s position be different had the company adopted a different digital imaging strategy in the eighties and the nineties? Evaluate Kodak’s strategy starting in the mid-eighties. In 1983 Kodak’s stated objective was to invest in digital imaging R&D, but the company’s structure and culture were not aligned to promote this innovation. From the 1980s through the early 1990s, Kodak did not have a clear opinion and view of how digital imaging would drive the industry or how to commercialize any of their R&D findings. As a result, Kodak continued to seek ways in which it could marry chemical-based and electronic image to preserve the company’s cash cow, selling high-margin consumables (photographic film and paper). Through 1993, Kodak had spent $5 billion in digital imaging R&D but had little to show for it besides an image sensor that competitors had used to compete for the low-end consumer market and theKodak’s Photo CD device, which was ultimately unsuccessful. Management failed to focus on the merits of developing digital on a stand-alone basis. For example, the Photo CD utilized digital imaging but required it to be used in tandem with traditional photography. Kodak’s pricing was too steep and the product was inappropriately targeted, against the advice of Kodak’s own invention team, to the consumer market rather than the commercial market. As a result, Kodak missed out on establishing an initial digital imaging market position...
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...INDIVIDUAL REPORT ON SIMULATION EXERCISE (GLO-BUS) COMPANY NAME: X (Company E) INTRODUCTION/ GENERIC STRATEGY We began managing our company, X, intuitively. However, as the operating year progressed our strategic direction began evolving as a mixed yet responsive strategy. We developed two different strategic directions, one for the Entry-level cameras and the second for the Multi-featured cameras, hence a mixed strategy. For the Entry-level camera we applied the Best-cost provider or the Hybrid strategy as we provided a low cost yet unique product as it offered high value and quality. The goal behind this strategy was to increase profitability and outcompete our rivals through increased market share. While for the Multi-featured cameras we implemented a focused differentiation strategy, as we decided to provide a unique product with a high price, to achieve a very high PQ rating. We chose this strategy because we found a gap in the Multi-featured camera market, as there was no other company producing a high quality camera at a premium price. Both of these strategic directions were driven by the responsiveness of the competitive market. For both types of our cameras we tried to find a gap in the market and take advantage of it. Therefore, we chose the hybrid strategy for the Entry-level camera and the focused differentiation strategy for the Multi-featured camera. INDUSTRY OVERVIEW: PESTEL Political Since we operate in four major geographical areas (North...
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...Sony camera vs Nikon camera marketing strategy STRATEGY IMPLEMENTATION The idea behind this continual process is that each step of the planning process requires some degree of implementation before the next stage can begin. This naturally dictates that all implementation cannot be postponed until completion of the plan, but must be initiated along the way. Implementation procedures specific to each phase of planning must be completed during that phase in order for the next stage to be started. Read more: Strategy Formulation - organization, levels, system, advantages, manager, school, company, hierarchy, business http://www.referenceforbusiness.com/management/Sc-Str/Strategy-Formulation.html#ixzz1YzZon4PbImplementation of the strategic plan is the final step for putting it to work for an organization. To be successful, the strategic plan must have the support of every member of the firm. As mentioned in the beginning, this is why the top office must be involved from the beginning. A company's leader is its most influential member. Positive reception and implementation of the strategic plan into daily activities by this office greatly increases the likelihood that others will do the same. Advertising is key to successful implementation of the strategic plan. The more often employees hear about the plan, its elements, and ways to measure its success, the greater the possibility that they will undertake it as part of their daily work lives. It is especially important that...
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...relation to the firm’s direction. The report will then conclude with a VRIO analysis which determines the core competencies of the firm. Kodak has been a big player on the market since its founding. In order for Kodak to survive we must question Kodak and ask “Does the Kodak of today have the organization to fully utilize their available resources and obtain a competitive advantage?” Eastman Kodak Company is an American imaging, photographic equipment, and services company. The company was founded by George Eastman in Rochester, New York in 1889. Kodak has always operated around four industries. These industries include graphic communication, commercial imagining, Health, and digital as well as film imaging. Though they operated around these four industries, Kodak has always been known for their focus on camera technology including film based technology. Here is where Kodak had become a leader...
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...Marketing 401 Name of organization: Nikon Corporation Product analysis and strategy Pricing strategy Promotion strategy Distribution strategy Environmental Analysis Nikon operates in a highly competitive consumer and professional optics environment. The product range in this industry starts with consumer level digital cameras then moves through to pro-level film and digital cameras and includes sport and scientific optics such as binoculars and telescopes. There are a number of competitors all pushing for market share. Smaller competitors include Lumix, Olympus, and Leica. Larger, more dominant, competitors include Nikon, Canon, Sony and Pentax. The largest influence of this environment is the economy. Sales are typically directly inline with expendable cash flow of both businesses and consumers. Technological advancements are also a major influence. Although professional optics and cameras tend to have longer shelf lives, consumer level products are expected to advance a much quicker pace. Advancements in micro-technology assist with making consumer products smaller, faster, and more powerful as the market and consumer spending habits tend to dictate. Finally, in foreign markets such as the UK, political debates about the right to photography in public often influence which type of optics are released and how powerful those optics are. Environmental scanning would be conducted on a continuous basis across all existing products. Closely monitoring...
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...Digital Photography and Its Effects on Humanity: A Brief Examination of Three Examples Communication, Rapid Modification, Digital Artistic, & Advertising Laura Tavera DeVry University, Decatur Campus December 09, 2011 The digital world of photography change how humanity communicates and exchange images in a matter of few seconds provoking to have less privacy in your everyday life. Digital photos in the Web are very common, which is a useful tool for people to share memories and personal events, but once the pictures are downloaded and shared it’s impossible to erase. Almost everyone have digital access from either a camera phone or digital camera, which creates a whole new era of artistic art that helps humans to express feelings and emotions. Technology made it easier to play and experiment with common features of devices and programs to have a variety of pictures with different effects that creates artistic photos. Digital Photography transforms the view on how humanity has access to instant photos from family and friends, editing, and digital artistic. Events that Led to the Advancement Capturing digital images comes back in 1960s where NASA use digital signals to capture the surface of the moon with the help of computer technology to improve the images that the space probes were sending. The government used satellites to spy and helped to advanced digital imaging. The private sectors made big contributions like Texas Instruments invented a film-less electronic...
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...system, without the prior written consent of GLO-BUS Software, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. GLO-BUS: Developing Winning Competitive Strategies Participant’s Guide GLO-BUS Welcome to GLO-BUS. You and your co-managers are taking over the operation of a digital camera company that is in a neck-and-neck race for global market leadership, competing against rival digital camera companies run by other class members. All digital camera-makers presently have the same worldwide market share, although shares vary by company across the four market regions—Europe-Africa, Asia-Pacific, Latin America, and North America. Currently, your company is selling close to 800,000 entry-level cameras and 200,000 multi-featured cameras annually. Prior-year revenues were $206 million and net earnings were $20 million, equal to $2.00 per share of common stock. The company is in sound financial condition, is performing well, and its products are well-regarded by digital camera users. Your company’s board of directors has charged you and your co-managers with developing a winning competitive strategy—one that capitalizes on growing consumer interest in digital cameras, keeps the company in the...
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...camcorders, digital SLR cameras, precision lenses, projectors, and professional printers deliver the advanced imaging performance and capabilities that HDTV program producers, broadcasters, ad agencies, filmmakers, and other digital content creators rely on for making dynamic visual media” (Canon Film & Television, 2012) Offering new camera concepts to fundamentally and continuously introduce change in photography is key in aligning the Canon brand and image to be synonymous with reliability, ease in functionality, and quality to the professional consumer and establishing itself as the brand to beat in the digital camera marketplace with its lens technology that can produce super sharp, high-resolution pictures (“Red for still & motion.,” 2011). Canon’s brand dominance and notable achievements separates them from other competitors, such as Fujifilm and RED and with the current competition trend of HD production, Canon will surpass expectations and cavort its dominance over the competition with the long awaited Digital SLR EOS Renegade 3D (Renegade 3D). Canon was first to begin the motion capture craze with their innovative introduction of the seditious Canon EOS 5D Mark II back in 2008 and since then Canon has surpassed the competition with a production development line of cinema EOS model cameras that obtain similar, if not more advanced, digital stills and motion capture as recently seen with the previous release of their EOS C300 digital cinema camera and...
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