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Kodak vs Fuji

In: Business and Management

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* Kodak :Digital Imaging Company mainly used for business. * Founded by George Eastmen in 1888, based in Rochester, NY. * Best known for photographic product which were originally going to be used for big companies . * Kodak established their logo “Kodak Moment” in a sense that overpowers Fujifilm. * Kodak developed their first digital camera in 1975. * Kodak initially filed for bankruptcy in January 2012. * Kodak was entering a downfall when they stopped selling traditional film cameras in Europe and North America and cut off 15,000 jobs. * Kodak began entering a downfall in 2012 after they were unable to keep up with the finances and continued on cutting more and more jobs. * Kodak was unable to compete with the development of smart phone cameras. * In 2012 the company reported a loss of $1.3 billion on revenue of $4.11 billion, a near 80% decline from its best-ever annual report in 1991. * Kodak’s downfall primarily was due to the fact that as a company they could not come up with bigger and better ideas in order for consumer gross to increase so that they can pay to keep their company up and running. * Kodak was unable to keep up with finances as well. The company operated its own power plant, a water treatment system, a railroad, internal trucking operations and its own fire department. * An issue with Kodak is that from the start of their business, the traditional camera film was what was keeping their company going, it resulted in 70-80 % of the profits. * Kodak's earliest digital cameras were expensive, which meant that the only consumers were the government or large corporations that could afford the $15,000 to $25,000 price tag in the 1980s and early 1990s. * In terms of developing a digital camera, Kodak had moved too slowly with the accelerating rise in smart phone camera. In this time is when is Kodak initially filed for bankruptcy. * Kodak’s culture did not help. Despite its strengths—hefty investment in research, a rigorous approach to manufacturing and good relations with its local community—Kodak had become a complacent monopolist. * Another reason why Kodak was slow to change was that its executives “suffered from a mentality of perfect products, rather than the high-tech mindset of make it, launch it, fix it,” says Rosabeth Moss Kanter of Harvard Business School, who has advised the firm. * Working in a one-company town did not help, either. Kodak’s bosses in Rochester seldom heard much criticism of the firm. Even when Kodak decided to diversify, it took years to make its first acquisition. It created a widely admired venture-capital arm, but never made big enough bets to create breakthroughs. * Bad luck played a role, too. Kodak thought that the thousands of chemicals its researchers had created for use in film might instead be turned into drugs. But its pharmaceutical operations fizzled, and were sold in the 1990s. * George Fisher, who served as Kodak’s boss from 1993 until 1999, decided that its expertise lay not in chemicals but in imaging. He cranked out digital cameras and offered customers the ability to post and share pictures online. A brilliant boss might have turned this idea into something like Facebook, but Mr Fisher was not that boss. He failed to outsource much production, which might have made Kodak more nimble and creative. He struggled, too, to adapt Kodak’s “razor blade” business model. Kodak sold cheap cameras and relied on customers buying lots of expensive film. (Just as Gillette makes money on the blades, not the razors.) That model obviously does not work with digital cameras. Still, Kodak did eventually build a hefty business out of digital cameras—but it lasted only a few years before camera phones scuppered it. * Kodak’s leadership has been inconsistent. Its strategy changed with each of several new chief executives. The latest, Antonio Perez, who took charge in 2005, has focused on turning the firm into a powerhouse of digital printing (something he learnt about at his old firm, Hewlett-Packard, and which Kodak still insists will save it). He has also tried to make money from the firm’s huge portfolio of intellectual property—hence the lawsuit against Apple.

* Fujifilm Japanese company headquartered in Tokyo, Japan. They are a multinational and photographic imaging company. * They were founded in 1934. * Fujifilm was the first Japanese company that intended on making photographic films and imagining. * In the following years that Fujifilm started developing products of which companies and hospitals can use. During the 50’s Fujifilm started establishing overseas and expanding their production and amping up their business sales. * Fujifilm was successful in the United States and establishing stores nationwide, while Kodak had a more difficult time trying to become established in Japan. * During the time where the two companies had to switch to digital marketing, Fujifilm had a more successful turn about, while Kodak did not find it so easy in doing so. * "Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one." * Kodak filed a lawsuit against the Japanese firm alleging patent infringement. * Fujifilm succeeded because they chose to take the hard way out and develop new products and new business which resulted in a more successful company. * Fujifilm different from Kodak , had many new ideas about recreating systems for their companies but Kodak had to partner with other companies in order to do so and share the income. * Today Fujifilm controls nearly 40% of the photofinishing market in America, whereas Kodak's share is only 15%. * Fujifilm's success stems in part from a decision in 2000 to spend around $1.6 billion for an additional 25% stake in FujiXerox, the firm's joint venture with Xerox, when the struggling American firm was in need of cash.

Refrences: http://www.kodak.com/US/en/corp/kodakHistory/ http://www.fujifilm.com/about/history/corporate_history/

http://www.richsmanagementblog.com/a-case-in-poor-management-kodak/management-principles/

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