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Kodak case study.


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couple of questions regarding Kodak!

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Kodak case study.

  1. 1. “Eastman Kodak faced challenges that threatenedthe future prosperity, perhaps the existence, of thebusiness.”It’s not an overstatement to say that George Eastman created a new industry.In 1879, he obtained a patent that was the basis for photography involving filmin rolls. Less than 10 years later, his fledgling firm started producing andmarketing Kodak cameras for amateur photographers. By 1896, the EastmanKodak Co. had sold 100,000 cameras. It’s headquartering in Rochester; NewYork was founded by George Eastman Kodak in 1889.
  2. 2. More about KODAK Page (252)Q1(a).Has Eastman Kodak relied on product-mix expansion, alteration of existingproducts, or product-mix contraction in the past five years?Answer: In its past 5 years the company has relied on product-mix expansion i.e. digital andimaging from amateurs to professionals, also in health imaging. In graphics communication andalso concentrating on leading edge display devices and components. Also in 2007 they haveinterested millions to start producing inkjet printers, ink cartridges as their main focus and highspeed commercial inkjet printers.Q1(b).Which of these three product-mix strategies will Kodak need to follow inthe next five years?Answer: Since product mix expansion was the previous strategy followed by 120dak andresulted them in high profit only till the 90’s, but then after that they have been struggling tostay on their feet and even went bankrupts in late 90’s and had to borrow loans in millions.Because of the decline of products and not being able to keep up with competitors like Apple,Canon, Epson who are out running them in digital imaging. In the next 5 years product mixcontraction is the strategy to be followed because of integration of cameras in cell phones,Smartphone’s and tablets. Their company invested in millions since 05 to ink jet printers and isslowly trying to phase out digital camera business. It sees home photo printers, high speedcommercial inkjet process and ink cartridges as care of its future business.
  3. 3. Q2.How well has Kodak managed its key product lines in relation totheir life cycles?Answer: 20th century was the most dominant for Kodak as 90% of market shares werethrough its photographic film sales and 85% camera sales in the U.S but then later in late 90’s itstarted to struggle financially. As its products were losing demand and they suffered a loss of60$ on each sale in 2004 it announced to stop making still cameras and started making digitalones .In 2007 the company invested in millions and re entered the market with AIO (All inone)ink jet printers and emphasis was on the low price ink cartridges rather than printers and itis still working on slowly phasing out of digital camera business.