Kodak which industry

Therefore product differentiation and innovation as well as associated pricing were very important for this industry. For example, the product differentiation for digital cameras and related products by different competitors is shown in table 2.

The company struggled to develop new products for new market segments. The digital photography market was fast-paced and the technological change played an important role in this industry. Analysts expected that digital cameras would begin to outsell film cameras in the US in and consumer switch to digital photography would be nearly complete by Most competitors were industry giants which possessed or were able to build up the strong technological capabilities to meet demands.

Moreover, companies tried to work together for development of new products and sharing development cost, e.

Kodak and Lexmark cooperation for development of desktop photo inkjet printer, Kodak and Noritsu Koki for minilab, and Kodak and HP for digital photo printers for retail outlets. To analyze the competition in the photography equipment industry the Five Forces model of Porter was used. Thereby the impact of individual competitive forces and the collective strength of them were studied.

The intense rivalry among providers had the greatest effect on industry attractiveness due to the following factors:. Rapid development of digital technologies caused a strong threat of substitutes for the photography equipment industry:. New products, services, and business model, e. The reason was the low image quality and limited technical features of camera phones in terms of storage, zooming functionality, and power supply.

However, if the popularity of on-screen photo viewing increased due to quality improvement of camera phones, it would lead to a decline of volume of printed photos and hence, revenues from film processing and printing. For this reason a moderate to strong threat of new potential entrants was expected:.

For example, HP produced digital cameras to continue demand for its printers and ink cartridges. Kodak had to enter as quickly as possible into the digital photography market because of the decline in sales for its traditional film business.

However, new rivals from these regions, in particular from the Far East, could heighten the price competition and should not be disregarded. They could also buy components from suppliers and the switching cost to other suppliers was low. Moreover, the thin profit margins forced companies to cut costs and optimize the manufacturing process. Hence, supplier had only a weak bargaining power in this segment. Here could the supplier have a moderate influence on companies.

Case study: Kodak at a crossroads - The transition from film-based to digital photography Research Paper undergraduate , 36 Pages, Grade: 1. Khanh Pham-Gia Author. Add to cart. List of Abbreviations illustration not visible in this excerpt List of Tables Table 1 — Competitors in different segments of the photography equipment industry. Table 2 — Product differentiation of digital cameras by different competitors. Innovative technology is the most emerging driver of this sector.

The majority of goods developed by Eastman Kodak and other companies in this field are essentially influenced by innovative technologies Consumers Union of U. S, This is why it was necessary to rock the industry with the advent of digital cameras, thereby commanding a larger share than that of conventional cameras.

Therefore, most firms in this industry have been able to reach out the market through advancements of technology. Imaging and photographic has taken a different direction especially in the 21 st century hence the need for creativity and innovativeness. Exhibit 14 a shows the opportunities that Eastman Kodak enjoys against its competitors. Amongst the opportunities enjoyed include financial markets where it is possible for the corporation to raise money through debts owing to its large assets, emerging markets especially with regards to different age groups being so much involved in taking photographs, innovation especially with developing technology, online selling and buying of products, and also product services expansions.

From Exhibit 4 the main segment that provides a good opportunity for Eastman Kodak is the consumer imaging. Compared to other segments, Consumer Imaging Segment attracted a lot of revenue in terms of sale during the fiscal year Dobbin, This is because over the last fiscal year they recorded the highest level of growth with interchangeable lens camera recording up to Another opportunity is with regards to the power of supplies.

According to Exhibit 14 b , Eastman Kodak suffers significantly from high levels of competition, cheap technology, economic recession, lower cost for competitors or imports, maturing categories, products and services, as well as price wars and product distribution.

These have posed great threats to the firm leading to bad performances it has achieved within the last few years. Competition has been due to the high power of entrants as well as intensity of rivalry and substitutes. This poses a great threat to Kodak as there will be more firms entering the industry. As a result the poor record seen within the previous years is likely to be repeated.

It is therefore obvious that with such increase in new firms and substitutes there is likely to be split within the market share hence affecting Eastman Kodak significantly. There is therefore serious need to have proper, efficient, and effective measures that should be put in place in order to retain the already existing customers Dobbin, Other than opportunities and threats discussed above, Eastman Kodak enjoys many strengths coupled with some weaknesses.

Some of the strengths include meaningful brand recognition especially given that it has been in the market for over a century, diversified geographic base after establishment of various subsidiaries and enterprises, and cross licensing agreement. Its weaknesses include lack of product and weak financial performance.

Lack of product arises when Eastman Kodak produces products hurriedly after its competitors have produced. In addition, quality is compromised in the process of hurriedly manufacturing and developing products on the basis of other products.

Market Positioning: Kodak has targeted consumers who are adult and post baccalaureate of about 25 to 40 years of age, actively involved in various activities, having so much passion about relationships and friendships, and with a lot of interest in capturing images both still and motional.

This market segment is very rich as majority of people between the ages of 25 and 40 are far much active in taking images and sharing the same through various digital devices. Nevertheless, Kodak as a firm has failed to provide products that distinguish benefits to consumers. Most of its products are produced in haste as a result of pressure from competitors and this leads to poor quality products.

Consequently the firm suffers reduction in the market share hence profitability as indicated in the financial statements from Exhibits 7 to 10; income statements, balance sheet, cash flow statement, and ratio analysis respectively. A lot of risks thereby face products manufactured in this kind of manner. For instance, there is a possibility that such products may have some defects in them and this discourages consumers from purchasing the same. Pricing: Applying the economic value pricing indicated in Exhibit 11 , Kodak has been able to price most of its products.

In this case, Kodak struggles to deliver products while that provides a demand for price premium over its competitors. Kodak enjoys the benefit of four of its products being ranked amongst the top nine cameras that are doing very well in the market. Exhibit 12 provides comparison of pricing by Eastman Kodak Corporation. Placement: Kodak placement is almost similar to that of its competitors. There are products that are sold through the website while others are distributed to consumers through various distributional channels available in the industry.

Most of the products sold directly by Eastman Kodak through its websites are digital cameras, inkjet printers, and digital picture frames owing to the fact that they are very sensitive. The key strategic issue with regards to Eastman Kodak Company is the fact that they manufacture products hurriedly after their competitors. This is due to lack of proper innovative and inventive strategies. Consequently Eastman Kodak Company should have more people brought on board to work on innovative and inventive technology, which will help in creating unique products of high quality.

Eastman Kodak firm employs various strategies to ensure that they retain existing consumers while attracting others Kodak, The following are some of the strategies employed by Eastman Kodak firm;. There are various alternatives that Eastman Kodak can employ in order to attract more customers and retain existing ones thereby achieving higher profits. Some of those strategies include;. In conclusion, looking at all the above alternatives they are all viable even though some are costly in terms of expenses hence are likely to cause an increase in costs of sales.

The best alternative amongst the aforementioned ones therefore is for Eastman Kodak Company to engage in research and development that will improve their inventive and innovative technology for the purposes of developing products that are unique and of high quality. On September 3, , the company emerged from bankruptcy having shed its large legacy liabilities and exited several businesses.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More. Table of Contents. Who is pictured on the Alabama state quarter? What is the new rule on k rollovers? Accept Decline Cookie Settings. I consent to the use of following cookies:. Cookie Declaration About Cookies. Necessary 0 Marketing 0 Analytics 0 Preferences 0 Unclassified 0.

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. A spirit of collaboration established will offer a positive contribution to the partnering businesses when different products are launched. Such cooperation will turn new brands into a competitive advantage instead of a cost for the Eastman Kodak Company. The objective is to improve the current product brands into an efficient product that is diversified Bowden Towards implementing marketing function, the product diversification strategy should constantly employ elements of the marketing mix to appropriate plans on how to achieve popularity in the market place.

These strategies are aimed at promoting positive consumer behavior by introducing more brands. The research methodology can be improved by increasing the sample to more than to improve on accuracy in representing the position of the entire population. Besides, there is a need to carry out a pilot study to minimize the degree of bias that might exist in the findings. The Eastman Kodak Company has been in the market for more than a century.

The company has managed to survive competition through product differentiation, strong brand, global coverage, and innovative approach. However, the company is facing stiff competition as technology advances each day. The Eastman Kodak Company can achieve this through technology innovation in product development and concentric diversification.

These recommendations will enable the company to survive the competition and expand its revenues through increased market share. Bowden, John. Cheverton, Philip. Eastman Kodak Company. Product Innovation. Kotler, Philip, and Kevin Keller. Weinstein, Art. Rhim, Hosus, and Chan Lee. We use cookies to provide the best experience for you.

Keep on browsing if you are OK with that, or find out how to manage cookies. Introduction Eastman Kodak Company, commonly known as Kodak is an American innovation organization that focuses on creating pictures.

Products The Eastman Kodak Company has diversified its business and has products such as digital imaging, digital services, digital equipment, and photographic materials. Management, Marketing, and Main Marketing Problems Management Problem In the face of increasing competition and market saturation, the company is faced with the dilemma of the best strategies to adopt to sustain market dominance and increase market share.

Should the Eastman Kodak Company re-brand or introduce more brands to its current product line? What is the demographic and psychographic profile of photographers who prefers Kodak over other professional cameras? Name Establishment and Operations Products Targets and Products Competitive advantage Nikon Established in in Tokyo and currently operates globally Deals in digital cameras and film Targets customers of all ages interested in the digital camera and related products Diverse products, affordable prices, a household name, and global operation Sony Established in Japan in and operates in the global market.

Deals in digital devises accessories Targets customers of all ages interested in digital cameras and other accessories Specialized and diverse digital camera products that are affordable and associated with quality Canon Founded in in Japan and has global market coverage Capitalizes on optical and imaging products such as cameras, photocopies, and medical equipment Diverse designs and ability to offer a series of products to different groups of potential customers.

Strengths Weakness Brand equity and recognition Easily accessed High-quality brand Global manufacturing Lack of product diversification Poor marketing plan Loss of market share Lack of innovation Opportunities Threats Increased focus on action cameras Positive outlook for the packaging industry Durable growth in the printing market Increase in competition Change in customer preferences Rapid technologies changing. Alibaba Group: New Brand Strategy. Deals in digital cameras and film Targets customers of all ages interested in the digital camera and related products.

Deals in digital devises accessories Targets customers of all ages interested in digital cameras and other accessories. Diverse designs and ability to offer a series of products to different groups of potential customers. Brand equity and recognition Easily accessed High-quality brand Global manufacturing.