Kodak Evaluation

In: Business and Management

Submitted By baoluo
Words 647
Pages 3
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 estimated that there will be a day when digital photography will completely replace the traditional photography.

The value creation and value appropriation have changed in digital photography relative to traditional photography. Digital photography has changed its value, and it has gained more value as compared to the traditional photography thanks to its innovative features and the…...

Similar Documents


...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......

Words: 863 - Pages: 4

Kodak Memo

...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......

Words: 1212 - Pages: 5


...George Eastman, Kodak's little yellow film packages became one of the world's most recognised brands. Indeed for much of the twentieth century Kodak was an American industrial icon , at one point enjoying a similar status as tech giant Apple does today. However, as digital technology changed photography dramatically, Kodak, the former leader in analog film and one of world’s most valuable brands, got left behind and went bankrupt by early 2012. Besides never capitalising on the digital-camera technology it helped create, Kodak also gravely misunderstood the new ways consumers wanted to interact with their photos, the technologies involved, and the market forces surrounding them. By the time Kodak had both feet fully in the digital game, it had been outclassed by more nimble competitors with better products. Kodak invented digital photography. In 1975 Kodak engineer Steve Sasson created the first digital camera, which took photos with 10,000 pixels, or 0.01 megapixels - about a hundredth of the resolution that low-end camera phones have today. Kodak didn't stop there, it worked extensively on digital technology, patenting numerous technologies, many of which are built into the digital cameras of today. In 1995 the company brought its first digital camera to market, the DC40. This was years before many others got into the digital game, but Kodak never took advantage of its early start nor did they market the new technology. Philosophically, the company was steeped in the film......

Words: 952 - Pages: 4


...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 while competitor programmers and commercial businesses utilized Kodak software and technology for their own products and services. In 1993, the new CEO, George Fisher, refocused Kodak on its core business and exploration of new digital technologies with a focus on hardware. Unfortunately,......

Words: 822 - Pages: 4


...Eastman, who founded Kodak in 1885, had two prerogatives. The first one was to create a common product: something as a user friendly product “as convenient as a pencil”, and second was to develop a revolutionary invention, anticipating customers’ needs. This long run approach allowed Kodak to blow away all its competitors consequently leading the firm to dominate the film and camera markets by 1976. At that time Kodak represented 90% of the film market and 85% of the camera market. Since the beginning Kodak was able to base its strategy on innovation, having at the same time a customer focused policy. Great innovation could result worthless without a customer fidelity policy. Therefore the firm decided to create user-friendly products. That is the reason why suddenly after the firm introduced onto the market a revolutionary product such as the roll of film, this could have created new opportunities alone, it also launched a new camera, easy to use for all the people, marketed with an emblematic slogan: “You press the button we do the rest.” Hence, Kodak carried out a penetration strategy with mass production at low cost and an aggressive marketing policy, with the objective of increasing market share or sales volume, rather than to make profit in a short term. Kodak’s core business was films, but it understood early that “money come from consumables and not from hardware”, hence they started to produce cameras, perceiving that the market was offering such a great opportunity......

Words: 1945 - Pages: 8

Case: Kodak

...Case: Kodak’s Organizational Architecture Saint Leo University Abstract: Kodak dominated film and photography for a sustained period of time operating under near monopolistic conditions. During the 1980’s, advances in technology and communications gave birth to competition from Fuji and generic store brands. Kodak’s policies and organizational architecture were shown to be past their prime as Economics Darwinism set in. This paper will discuss factors prompting Kodak to make changes to existing architecture, mistakes made into those changes, and what should have been done differently. Case: Kodak’s Organizational Architecture The market environment in which Kadak operated in witnessed dramatic changes in the 1980s. Competition from Fuji and generic store brands began to erode Kodak’s market power and market share (Brickley, Smith, & Zimmerman, 2009, p. 358). Products such as Fuji’s high-quality film were brought to market within months rather than years because of the industries advances in communication, design capabilities, and robotics (Brickley, Smith, & Zimmerman, 2009, p. 358). The market saw substantial gain during this time frame however Kodak’s share price dropped 16 percent from $85 to $71 in 2 years (Brickley, Smith, & Zimmerman, 2009, p. 358). Kodak’s leadership determined that the company’s existing structure and organizational architecture did not allow for adaptability or responsiveness to market changes (Brickley, Smith, &......

Words: 1319 - Pages: 6


...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......

Words: 2855 - Pages: 12


...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......

Words: 2401 - Pages: 10


...Furthermore, innovation is the heart of the Kodak identity and helped them displace competitors. 2. Technological differences between traditional imaging and digital imaging resulted in an organizational and structural changing. Traditional imaging was primarily a horizontal organization from film to paper whereas digital imaging resulting in a vertical organizational structure. This new structure attracted many new entrants. Thus the customers were provided with many new products and value propositions. As the exhibit 9 show highlights, the worldwide traditional imaging sales have dropped over the years. Thus, digital imaging has led to segmentation of customers based on prices, quality of images, user friendliness and type of storage. Each company should focus on a particular segment and try to maximize its appropriation and thereby the profit margins. 3. In 1981, Kodak did not see the Sony Mavica as big threat because they felt people liked color print and was slow to respond because of their historical revenue model. Film were generating a lot of profits for Kodak and they did not believe that launching a digital camera will generate a high profit. It’s the reason why the moved their core business toward a B to B model. They believe that their skills and expertise in the chemical field could be similarly applied in the pharmaceutical industry for instance. But this new businesses were still based on film photography. Kodak received attacks on their core business......

Words: 945 - Pages: 4


...599: Strategic Management Professor: A New Strategy for Kodak 03/14/2015 Establish five (5) key objectives for Eastman Kodak that encompasses the operational, financial human resource aspects of the business. The five key objectives for Eastman Kodak would be profitability, productivity, customer service, growth, and competitive analysis. Profitability Maintaining profitability means making sure that revenue stays ahead of the costs of doing business, and focus on controlling costs in both production and operations while maintaining the profit margin on products sold. In order for Kodak to become relevant again, it has to be able to create substantial profit to compete in market place. Productivity Employee training, equipment maintenance and new equipment purchases all go into company productivity. Kodak objective should be to provide all of the resources that it employees need to remain as productive as possible in order to compete with Sony, Cannon, and Samsung. Customer Service Good customer service helps you retain clients and generate repeat revenue. Keeping your customers happy should be a primary objective of Kodak. Without customer service Kodak wouldn’t be able to compete with the likes of Amazon, Apple, and Samsung who is customer service driven. Growth is planned based on historical data and future projections. Growth requires the careful use of company resources such as finances and personnel. Kodak has to continue to innovate and growth the company......

Words: 1295 - Pages: 6


...Kodak 1. Did Kodak face more of a calm waters or white-water rapids environment? Explain. What external and internal forces impacted on Kodak? Kodak faced more of s white- water rapids environment because of the fact that circumstances were both uncertain and dynamic, as it was the case of the technological industry. The Kodak problem, on the surface, was that it did not move into the digital world well enough and fast enough, although they invented the digital photography in 1975. (New York, 2012). In the company there were people who saw the problem coming, but the firm did not act when it should have, which is decades ago. Rick Braddock, a Kodak director since 1987, whose career spans Wall Street, online retailing and private equity, recalls that “the mindset of the company was ready for the challenge: it was ‘Batten down the hatches’. We sold the healthcare business and we started the process of developing a digital response. But the way the market shifted was dramatically faster than we had anticipated or than I’d ever seen”. (Hill, 2012) 2. How would you evaluate Kodak's handling of the forced downsizing that it had to implement? Downsizing is the systematic reduction of a workforce through an intentionally instituted set of activities by which organizations aim to improve efficiency and performance. (Appelbaum, 1999, p. 536). It means a permanent reduction of workforce through diverse means and changes on different level that affect the workforce. ......

Words: 2249 - Pages: 9


...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......

Words: 273 - Pages: 2


...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......

Words: 2240 - Pages: 9


...The case presents us with the problems that Kodak is facing because they have been complacent in maintaining their market, which paved the way for Fuji to encroach on their territories. Kodak has been on top of the market for so long that they did not expect a relative newcomer in the US market to succeed that much. Fuji has the advantage of capitalizing on the support of the Japanese government, as well as an almost monopoly in Japan, which is why Fuji can afford to lower prices in the United States market. Right now Kodak is faced with two main dilemmas, one its competition with Fuji that will become more pronounced since they both plan to enter the lucrative Chinese market, and the bigger problem that is its struggle to stay relevant despite the advent of the digital cameras. By 1998 Kodak was suffering relatively constant declining sales. The only thing that saved them financially that year so they could post a positive net income was the layoff of more than 16,000 employees. This is referenced in the financials by cutting the SG&A Expense by nearly half as compared to that of a year ago. It is mentioned in the article and unclear if the cut in SG&A also was a result of cutting marketing. If that occurred, then as mentioned in the case, it was a business mistake. The second problem with Kodak's is that it has been the industry leader for so long that it developed a collective mindset of invincibility. They did not keep strong tabs of their competitors and if they do......

Words: 1876 - Pages: 8


...KODAK CASE STUDY HOW KODAK LEVERAGED THE POWER OF COMMUNITY published on 5/20/2008 at MarketingProfs.com by Kimberly Smith When it chose to enter the saturated inkjet market 20 years late, Eastman Kodak had a few surprises up its sleeve: half-priced ink cartridges and prints that retain their bright colors more than 600 times longer than competitor brands. Still, in a world where more-tantalizing gadgets such as ultra-thin laptops and digital cameras often take center stage, the company found it also needed a little ingenuity on the marketing side if it was to merit the attention it needed to gain market share. Proven advertising techniques were set in motion and a special promotion with NBC's Celebrity Apprentice was launched; nevertheless, questions remained about how effective those were in luring the target market. So company Research Analyst Aprille Byam quickly set out to get a better feel for market perceptions and behavior, hoping she might also generate excitement around the new technology. Aspiring to bridge the gap between quantitative and qualitative research, she worked with online panel management provider Vision Critical in 2007 to create Print Rave, a fusion of Web-based panel and online community that allowed the company to both directly communicate with users and moderate member-to-member interactions. That combination allowed Eastman Kodak to delve into the hard questions and keep users engaged so that it could gather the insight needed to forge......

Words: 1369 - Pages: 6