Eastman Kodak Case Study

Transcript

EASTMAN KODAK CASE STUDY Eastman Kodak Case Study Name Institutional Affiliation Introduction In the changing world of technology, change is the only constant. The business The business   which lacks the capacity to embrace change cannot succeed in the competitive world. Precedences show that change and innovation in technology challenge the success of the market leaders. Right strategy plays a critical role, and many leaders lost their market leadership without it (Jackson, !"#. $odak, based on an innovative idea and product of that time, was a market leader in the film based photography photography products. In "%&', the business business invested and launched launched the first digital camera. The business was the primary innovator of the digital technology with appro approima imatel tely y ).* billion billion worth patients patients.. +fter +fter touching touching the new heights heights of succes success, s, the company filed a bankruptcy suit in !" (ucas -oh, !"/#. The assignment aims to analy0e the $odak1s digital imaging strategy critically, the reason behind its failure, and identifying alternative strategies. In the end, some logical and rational recommendations will be presented to regain lost success in the future. Q1. What was Kodak's diital imain stratey durin 1!!"#"$1"% $odak is one of the pioneers of the digital revolution, but was not bale to keep pace with the fast changing customer2s needs. The competitors were following $odak, but the market dynamics were changing drastically. $odak, then ventured a 3iche strategy offering the product for a selected market. The business uses this strategy to limit the threat of substitute $odak was the market leader in film4based photography which dominated the market for decades. The EASTMAN KODAK CASE STUDY  business known for its innovative and creative approach was unable to meet the changing needs of the market. The company employed cost leadership which has shown its limits in this case. $odak used ra0or4blade model where the products were offered at the lowest price. The business was unable to sustain as the competitors such as 5u6i soon imitated the cost leadership. The sales volume volume determine determined d the profi profitt margin margin which which was practiced practiced by a ma6ori ma6ority ty of the opp opponen onent, t, resulting in reducing customers and commoditi0ing of their profit. The client started perceiving the product offered as the low 7uality which adversely affected the product and brand image (8$odak 3et8, !"*#. $odak is one of the pioneers of the digital revolution, but was not bale to keep pace with the fast changing customer2s needs. The competitors were following $odak, but the market dynamics were changing drastically. $odak, then ventured a 3iche strategy offering the product for a selected market. The business uses this strategy to limit the threat of substitutes. The company wanted to present a broad range of product to the customers, but the real challenge was how successful successful the business business could switch to new focused strategy. strategy. It needed competencies, competencies, marketing, and technology (8$odak 3et8, !"*#. The net strategic landmark was the development and implementation of the 9igital :trategy, which focused on the imaging industry (8$odak 3et8, !"*#. The strategy was based on the following three themes; ". +n incremental approach based on building a presence by developing and offering offering services and product according to technological changes and advancements. $odak provided a hybrid camera with a combination of traditional and digital photography. EASTMAN KODAK CASE STUDY . 9ifferentiation strategy was employed to offer different product and services to commercial commercial and customer markets. The product and services provided to various segments reflected price differentials as well. /. $odak $odak enter entered ed into into partner partnershi ships ps and and alli alliance ancess to to add add compe competit titive ive advant advantage. age. The  partnerships included leading hardware and software business to add competitive advantage. Q". Why did the stratey fail &e s(ecific offerin an in#de(th analysis) +fter the success of :ony 9igital e made a risky, but a rewarding choice to switch to film and later by investing in the color film. +pparently, these two options options were risky, risky, but it was essential essential to prepare the business business for the future. This time, time, even after accurately forecasting future trends, $odak was unable to respond to future needs. The core  business competency of low4cost leadership became the core rigidities. The decision was delayed, and when the company decided to take the native and diversify? it took years to make the first first ac7uisition. ac7uisition. $odak was etremely etremely slow in embracing embracing change. change. The perfect product product mentality resulted in the slow transition into digital photography, and innovation failure. The  business didn2t fail because it missed the digital revolution. In fact, it was the first one to identify it, but it held back as it feared to lose lose the lucrative film business. $odak played ignorant to the fact that the new digital market was reshaping the whole industry (8=astman $odak igher level of diversifi diversification cation is not a guarantee guarantee of  higher performance and success will mainly will depend on market research, potential to identify and respond to change. EASTMAN KODAK CASE STUDY References  Eastman Co..(!"*#. Kodak UPF . Retrieved A +ugust ! " * , from http;BBwww.econ.upf.eduBdocsBcaseCstudiesB*"en.pdf  Jackso Jackson, n, :. (!"#. (!"#. 5ive 5ive secret secretss to success in business strategy. Journal  Journal Of Business Strategy, 33(#. http;BBd.doi.orgB"!.""!DB6bs.!".DD//baa.!!/ $enny, . (!!%#. Diversifiation strategy. ondon; $ogan Page.  Kodak !e"t .(!"*#.  Demorat and C#ronile. Retrieved A +ugust ! " *, from http;BBmedia.democratandchronicle.comBkodaknetBpdfB$odak3et.pdf  an0olla, . - +nderson, J. (!"!#. T>= 9IIT+ R=EFGTIF3 I: FE=R. F3 IE= T>= T>= 9II 9IIT T+ R=EF R=EFG GTI TIF3 F3HH Business  .Business Strategy $evie%, &'("#, &A4& A4&&. http;BBd.doi.orgB"!.""""B6."A*&4D*"*.!"!.!!*'!. ucas, >. -oh, J. (!"/#. (!"/#. 9isruptive 9isruptive technology; technology; how $odak missed the digital digital photography revolution.  (EEE Engineering )anagement http;BBd.doi.orgB"!.""!%Bemr.!"/.**%/%/% $evie%, *'(A#, D"4%/.