The key aim of this paper is to analyze the strategies developed by Kodak from 1992 to 2012 and to understand why Kodak failed in the competitive market. Kodak developed different types of strategies including corporate-level/competitive strategies, business-level/business strategy, functional level/functional strategy, and operating level/ operational strategies. However, Kodak failed in a competitive market. This is because it could not develop effective strategies and could not bring product innovation in the market. Due to the introduction of digital film and digital cameras the sale of Kodak film significantly down.
In this case, Kodak had the opportunity to bring product innovation, new market development, product diversification along with the practice of cost leadership strategies. Taking the lesson from Kodak other companies can develop their leadership practices following a new leadership model. Additionally, they could bring huge innovation in products, services, and strategies. Then, they should be more dynamic in strategic thinking and strategic development.
Table of Contents
2.0 What was Kodak’s digital imaging strategy from 1992-2012?.
2.1 Different types of strategies.
2.2 Kodak Segment focus and its product range.
2.3 Strategic group mapping of Kodak.
2.4 Innovation process.
2.5 BCG Matrix analysis for Kodak.
3.0 Why did the strategy of Kodak fail?.
3.1 Kodak’s external environmental analysis.
3.2 Strategic fit/SWOT Analysis of Eastman Kodak.
3.3 Porter’s Five Forces.
3.4 VRIN Analysis.
Reasons for Kodak failure.
4.0 Was there a better alternative to the strategy of Kodak?.
4.1 Portfolio planning models.
4.2 Ashridge Portfolio Display.
4.2 The McKinsey restructuring pentagon.
4.4 Ansoff Growth Matrix.
5.3 Innovation Management
5.0 What can other companies facing disruptive change in their core business (e.g. Microsoft, Sony, Walt Disney) learn from the experience of Eastman Kodak?.
5.1 New directions in strategic thinking.
5.3 new modes of leadership.
5.4 International Business Strategies.
The competitive business world leads business organizations to develop strategies for surviving in the market. Strategic management is an important term that indicates the better management of a business plan. Especially for Eastman Kodak, strategic management is very important to attain its ultimate targets (Singh, 2018). Kodak is a photography company that established in 1889 by George Eastman. The competition for photography products was increasing with new products and that has made the market challenges for Kodak. For this reason, it was to apply strategic plans in the actions of Kodak (Daneman, 2014). This paper analyses the strategic challenges of Eastman Kodak and the process of overcoming the challenges.
2.0 What was Kodak’s digital imaging strategy from 1992-2012?
2.1 Different types of strategies
The strategy indicates the process of holding the opportunities and removing the weaknesses and threats in the market. The strategy of a business organization can classify into several types (Higherstudy, 2017). These are shown in the following figure:
Our Recommended Resources:
Figure: Different types of study Source: (Higherstudy, 2017)
|Different types of strategies in Kodak|
|Level of organizations||Types of strategy||Example strategies|
|Corporate level strategies||Competitive Strategy||Low-cost strategy, differentiation strategy, and focus market strategy|
|Business Level||Business Strategy||Long time objectives of the business|
|Functional Level||Functional Strategy||Product development, innovation, market development, diversification.|
|Operating Level||Operating Strategy||Production strategy, marketing strategy, financial strategy, and human resource strategy.|
Table: Different types of strategies in Kodak Source: (Kodak Annual Report, 2012)
2.2 Strategic group mapping of Kodak
Figure: Strategic Mapping for Kodak Source: (Kodak Annual Report, 2012)
The above figure is shown the Strategic Group mapping that indicates that Kodak has situated in the low-medium quality/pricing range.
2.3 Kodak Segment focus and its products range
Figure: Kodak’s Segmentation Source: (Kodak Annual Report, 2012)
The above table is shown the segment of products of Kodak. It has found that Kodak has classified its market into the commercial and consumer markets. After that, Kodak has classified its products under the commercial and consumer market for distributing the products to the ultimate customers.
2.4 Innovation process
According to Grant (2009), due to the availability of a huge competition level, the firm requires creating new as well as innovative products to attract customers. The emergence of a dominant design marks a critical juncture in an industry’s evolution. The production and process innovation are interrelated that based on the rate of innovation and time. The following figure shows the product and process innovation:
Figure: Product and process innovation over time Source: (Grant, 2009)
At the first level; Kodak attained a large part of shares in the film market, as well as the competition level, was too low. But, after the new entrance of a company named “Fuji”, the competition level in the market was increased. Due to the competitor; the management body of Kodak was unable to create the same value proposition that reduces the share of them (Singh, 2018).
Figure: Kodak’s digital revolution Source: (Singh, 2018)
The market leader of Japan with more than 70% market share around 1984 steadily increased its market share in the US market by offering its products for lower prices than Kodak. Due to the huge competitive advantage of Fuji; Kodak has failed to continue its sustainable innovation. The reason for the failure of sustainable innovation of Kodak was weak innovation portfolio management. However; Kodak believed that they could find the innovation formula to create new “innovation” in the photography and film equipment and continue its product and process innovation (Singh, 2018).
2.5 BCG Matrix analysis for Kodak
BCG matrix is developed by Boston Consulting Group for measuring the competitive advantage and real position of a firm. It consists of four measures on the basis of two indicators including relative growth rate and market share (Whittonton, 2012)……………