...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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...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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...ESTRATEGIAS DE DIVERSIFICACIÓN Introducción Nos correspondió como grupo analizar y exponer las distintas estrategias de diversificación existentes. El formato propuesto tiene que ver con el fomentar un debate al respecto pues este tipo de herramientas tiene tantos adherentes como detractores. Por una parte está el hecho financiero de diversificar los riesgos para tener un mayor control, lo cual puede ser muy aconsejable en tiempos como los actuales en que la competencia en muchas industrias y mercados es muy pareja, a causa de la gran cantidad de información y el nuevo papel fundamental del consumidor y su satisfacción integral como principio y base de la producción, deben ser tenidas en cuenta por toda planificación estratégica. Pero por otro lado está el clásico dicho “quien mucho abarca poco aprieta” pues por diversificar demasiado se corre el riesgo de perder la esencia u origen o forma propia de hacer las cosas, perdiendo también el control pues no necesariamente somos especialistas en todo. Queremos llegar a una especie de consenso donde se vea tanto lo positivo como lo negativo analizando casos emblemáticos en estos dos sentidos y que el auditorio o lector sean quienes juzguen dónde está el equilibrio óptimo. Clave para esto será el papel y definición de la ventaja competitiva de cada negocio o empresa. Nos adentramos sin más, al análisis de este tipo de estrategias y la aplicación a los distintos...
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...Polaroid Estrategia 3. Enfoque estratégico de la empresa Desde hace algún tiempo, el enfoque de la compañía Polaroid fue cámaras instantáneas. Ellos fueron un éxito, ya que muchos podrían ver sus fotos. Además, la letra pegadiza canción "Shake it como una foto Polaroid" ayudó a difundir el nombre de marca a las poblaciones múltiples. Como las cámaras digitales se hicieron populares a través del tiempo, Polaroid perdió la concentración en su principal punto de venta: la fotografía instantánea. Sin embargo, Polaroid cree que esta nueva década es el momento de recrear sus cámaras instantáneas con la misión de revisión y nueva serie de valores y visiones. Actual Misión "Para poner la última tecnología de punta en manos de la gente y darles el poder para usarlo cómodamente, asequible ... y en un instante." Polaroid misión siempre ha girado en torno a la conveniencia del cliente y la facilidad de la tecnología. Su punto fuerte, la película instantánea, sigue siendo un legado en la empresa. Al asociar sus productos con precios razonables, la comodidad, y sobre todo de forma dinámica las continuas innovaciones, Polaroid se ha arraigado como na de las mejores marcas a los ojos de sus clientes, especialmente los aficionados. Sin embargo, en lugar de las tendencias actuales del mercado, ha llegado el momento de Polaroid para revisar su misión para incluir los siguientes aspectos y valores: * Experiencia: Más que un producto, las nuevas cámaras Polaroid servirá de experiencia...
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...Kodak: Changing the Picture Synopsis The case begins by recalling Kodak¶s storied history, which began in 1888 with its introduction of the Brownie camera priced at $1.00. By 2000, Kodak was one of the most recognized and trusted brands in the world. However, by the year 2000, the company faced many challenges. Its stock price had plummeted, and it had begun laying off workers. Even worse, when the September 11tragedy hit, consumers began to flock to digital cameras, and cell phone manufacturers beganto offer camera phones. As if all that were n¶t enough, Fuji was slowly but surely exposing the cracks in Kodak¶s marketing strategy. This was especially true of the move toward one-hour photo processing. In early 2003, the company began a major reevaluation of corporate strategy. In the years following, Kodak reduced its dependence on traditional photography. The new direction for the company would focus on non-photographic markets, digital markets (such as inkjet printers and high-end digital printing), and medical imaging. The company would no longer invest in traditional consumer film, which, along with photography, accounted for 70 percent of Kodak¶s revenue and all its profits. By 2004, the company had been significantly restructured in a manner reflective of the new strategic directions. By 2006, it appeared that the new strategic plan was not working, as evidenced by heavy losses and a declining stock price. Discussion Questions 1. How are the market...
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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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...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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...Kodak and Fujifilm: Leaders in Film Anita Annunziata Professor Fardanesh Business 302 May 1, 2013 Kodak and Fujifilm are both well-known companies in the households of the United States and across the world. These two companies are each other’s main competition in the film market. They have been competing with each other for years. George Eastman, who was the founder of Kodak, was a lover of the photo taking procedure and wanted to simplify the photography process. Eastman established the Kodak Company in 1880. The Kodak Company was built on four basic principles: mass production at low cost, international distribution, widespread advertising, and customer focus. Years later, he was able to add the following policies: growth and development through continuing research, human resources, and a profit reinvestment program. Mr. Eastman knew that he had to make the photo process easy for amateur photographers. The Kodak camera debuted in 1888. The slogan “you press the button, we do the rest” was born. Kodak made the process of taking and developing pictures easy and accessible to nearly everyone. Kodak has led the way with a abundance of new products and processes that makes photography simpler, more useful and enjoyable. Kodak is not just known to be the film for amateurs, many professionals use Kodak film for commercial, leisure, and entertainment purposes. The Kodak Company is continually researching the needs of the consumer to...
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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 Brief Case Report Diagnosis and analysis There were several issues that Kodak had to face in 1990s and I will emphasize a few of them. First, Kodak’s market share fell from 76% to 70% over a period of 5 years. That happened primarily due to film’s consumers being price-sensitive and preferring lower-priced films of Kodak’s competitors. Fuji and Polaroid, for example, enjoyed 15% growth in one year, while Kodak’s growth rate was only 3% during that same year. It is easy to see that consumers were provided with more options when it came to choosing film and since quality differences amount films were unclear, buyers based their preferences on price alone. Also, as soon as speculation arose about lowering a price on film, Kodak’s stock fell by 8% in value. Kodak was used to high gross margins; therefore, market’s expectation of leader’s lower prices and decreasing profits had a negative effect on its stock price and possibly even brand image. Second, Kodak faced stiff competition and the fact that Fuji was going after the US market. Fuji seriously differentiated itself from Kodak and grabbed consumers’ attention when it became the official film of the 1984 Summer Olympics in Los Angeles. Kodak’s response to Fuji’s move towards market domination has not been very timely or effective. It took Kodak 10 years to react and attempt to reposition itself in 1994 Olympic Winter Games in Norway. In my opinion, it was too little too late. Fuji’s campaign...
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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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...Kodak and Fujifilm Anitra Mallett Strayer University BUS 302 Management Concepts Dr. Rodney O. Adams Summer 2014 Contents Anitra Mallett Error! Bookmark not defined. Due Week 4/ Date: July 23, 2014 Error! Bookmark not defined. Kodak and Fujifilm Error! Bookmark not defined. In this paper I will discuss the history of both Kodak and Fujifilm. First, I will also give you a brief overview of the different business approaches between Kodak and Fujifilm. Second, I will explain the management and marketing of Eastman Kodak and Fujifilm. George Eastman was born July 12, 1954 in a village of Waterville to Maria Kilbourn and George Washington Eastman. George father passed away leaving George and his mother in financial despair. At the age of fourteen George dropped out of school and went to work. George worked a few jobs from an employee at insurance firm to a clerk at the bank. George planned to take a vacation to Santo Domingo, when a coworker of his suggested that he make a record of the trip. Then George Eastman went out and purchased a photographic outfit with all the paraphernalia of the wet plate days. This was his first endeavor into the photographic world. He also purchased a tent where he could develop the pictures from his trip as he was taking them. George never made his trip to Santo Domingo, instead he became very interested in photography and he experiment ways in order to make the process simple. George began to make his own...
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...C. Symonds When Eastman Kodak vowed in 2000 to become a leader in digital cameras, the idea seemed ludicrous. The old-line Rochester (N.Y.) company had film and print all through its DNA. Yet by 2005, Kodak ranked No. 1 in the U.S. in digital camera sales. Its digital sales surged 40%, to $5.7 billion, even as its film-based businesses fell 18%. The key: product innovation, something Kodak knew how to do oh-so-well. The company designed one award-winning breakthrough after another to make digital photography nearly as simple as pointing and clicking. So why does Kodak Chief Executive Antonio M. Perez now dump on digital cameras, calling them a "crappy business"? Simple: While blazing growth of camera sales has helped blunt the effects of Kodak's fast-fading film revenues, it hasn't replaced the rich profits of the film business. Even the best mass-market cameras yield slim profit margins. So, although Kodak's digital camera business was a roaring sales success, it turned out to be a crushing profit disappointment. Perez, who arrived at Kodak in 2003 and became chief executive last year, had championed a dramatic change only to find it wasn't the right model for turning the company around. Now he's crafting yet another strategy for Kodak, its third in less than a decade. Building on the mistakes made and lessons learned in recent years, Perez is attempting innovation of another sort -- reinventing the company's core business model. He aims to make Kodak do for photos what Apple...
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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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...Eastman Kodak, Fujifilm Innovation vs. Tried and True Introduction Eastman Kodak and Fujifilm have numerous accomplishments to brag; they have both amassed large success in the photographic commerce. While Eastman Kodak had the upper hand in the industry for nearly 100 years, Fujifilm has managed to flourish while Kodak filed bankruptcy in 2012. Fujifilm appears to have strategically implemented an equation that will thrive as long as they continue to invest in innovation, and navigate market changes. History Eastman Kodak and Fujifilm have been competitors since Fujifilm’s inception in 1934. Eastman Kodak had more than half a century worth of discovery and expertise over the incoming Fujifilm. However, when Fujifilm opened operations January 1934 within a month’s time they were producing all the same products as Eastman Kodak: roll film, photographic print paper, dry plates, and x-ray movie. It took George Eastman, inventor and proprietor of Eastman Kodak 25 years to invent color film (Eastman Kodak, unknown); in detail, George Eastman was renowned for very cautious designing temped with endurance, he did not hurry discovery and breakthroughs he was able to take his time because the industry was somewhat new and there was no real competition. As Kodak was ascending the ladder of success, George Eastman and his group of inventors had conceived many first. Including, the first dry plate formula along with the first patented appliance for organizing large amount of...
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