Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
Kodak Strategic Management (Strategic Blunder) Case Study
Download to read offline and view in fullscreen.



Download to read offline

Kodak strategy

Download to read offline

Kodak strategy

  1. 1. Case PresentationKodak’s Strategy 1
  2. 2. Group 4Name IDMd. Asif-Al-Noor 10364040Monira Mahsharan 10264014Marshal Richard 10364057 2
  3. 3. Agenda• Company Overview• Product line• External Factors Analysis – Porter’s 5 Forces Model – Industry Driving Forces – Key Success Factors – Strategic Group Mapping• Internal Factors Analysis – Core Competences – SWOT Analysis – Value Chain• Kodak Strategy – Based on Case – Why Kodak’s 4-year Strategy failed – Reasons for Failure – Based on Current Situation• Recommendations• Conclusion 3
  4. 4. Company Overview 4
  5. 5. Company Overview…. Cont…1879: George Eastman invented the dry-plate process and filed patent for a machine that coated dry photographic plates1880: George Eastman established the Eastman Dry Plate Company, at Rochester N.Y.1884: Introduced paper roll film1889: Invented perforated celluloid film1900: The Brownie box camera went on the market with a price of $11935: Introduced color film1960: Brought the Instamatic camera to the market1970: Major sales growth for Kodak. Concentrates on film and basic cameras 5
  6. 6. Company Overview…. Cont…1980: Fuji emerges as a serious competitor1994: Kodak abandoned its non-imaging health-related businesses began to invest in digital imaging products for medical practice1997: Kodak was a high-cost manufacturer with a growing portfolio of digital products which was losing hundreds of millions of dollars annually1997: Restructuring that eliminated 19,000 jobs and cut more than $1 billion from annual costs1999: Kodak entered the digital radiography market 6
  7. 7. Company Overview…. Cont…2001: Kodak is pushing aggressively into China, an important growth market2003: Carp unveiled the plan to invest $3 billion in the next three years in digital products by cutting dividends by 72% - to 50 cents per share2004: Kodak announced that it would stop selling traditional film cameras in Europe and North America, and cut up to 15,000 jobsJanuary 2005: The Kodak EasyShare-One Digital Camera, the world’s first Wi-Fi consumer digital camera capable of sending pictures by email, was unveiled 7
  8. 8. Company Overview…. Cont…December 2010: Standard & Poors removed Kodak from its S&P 500 indexJanuary 19, 2012: Kodak filed for Chapter 11 Bankruptcy Protection The companys stock was delisted from NYSE and moved to OTC exchange. Following the news it ended the day trading down 35% at $0.36 a shareFebruary 9, 2012: Kodak announces it will exit the digital image capture business 8
  9. 9. Brand Logo Evolution 9
  10. 10. Kodak Product• Four distinct sub-product – Digital cameras – Home printing – Online services – Retail kiosks and mini-labs 10
  11. 11. External Factors Analysis 11
  12. 12. Porter’s 5 Forces Model Question: How competitive forces affect industry attractivenessTo aid firms in analyzing competitive forces in an industry environment. 12
  13. 13. Porter’s 5 Forces: DigitalCamera HighNumbers of digitalTechnology,technolo Threat of Threat of New Numbers of digital Competition, knowcameras ,trend ofhow, economies of gy driven,digital market New Entrants cameras ,trend ofscales, and high digital marketsuppliers numbers move fast,investmentChina Entrants suppliersworldwide, of players, lower price worldwide, Chinabase strategy. o base Bargaining Rivalry Among Bargaining Power of Competing Firms in Power of Suppliers Industry Buyers -- - - -Fewsubstitutions, i.e. Threat ofMobile Substitutephone, Camcorder, Products o - --Traditional Low Moderate High 13cameras
  14. 14. Porter’s 5 Force in terms of photographic industryBuyers bargaining power • Have more choice • Switching cost low Strong bargaining powerSuppliers Bargaining Power is • Out side the country from global market moderate to weak 14
  15. 15. Porter’s 5 Forces… Cont..Potential New Entrants • Huge capital & specialized • Not relay on any company Strong entry barriersSubstitutes Products Low switching cost Low price of substitutes High bargaining power Strong threats 15
  16. 16. Porter’s 5 Forces… Cont..Rivalry among Competitor • Intense competition among the rivals Strong Competition 16
  17. 17. Industry Analysis through 5-forces:Answer Question 1 Strong entry barriers Buyer in strong position Moderate to weak position of Supplier Huge threat from substitute Strong rivalsApparentlyUnattractiveIndustry 17
  18. 18. Industry Driving Forces: Answer Question No2• Rapid decline in demand for traditional photography equipment in developed economies• Rapid growth in demand for digital cameras in developed economies• Steady decline in demand for film and photo processing• Development of new imaging technology such as photo-enabled wireless telephones and high-megapixel digital cameras 18
  19. 19. Key Success Factors• Technological capabilities• Rapid design-to-market cycle times• Reputation for producing high-quality consumer electronics• Reputation for producing high-quality optical devices (cameras, binoculars, microscopes, medical equipment)• Distribution network that includes large electronics chains and local camera retailers• Involvement in multiple segments of the industry value chain—camera production and sales, printing supplies, professional photo processing 19
  20. 20. Strategic Group mapping Firm % Market Share Average Price Canon 40% $220.00 Sony 15% $300.00 Samsung 10% $260.00 Nikon 10% $250.00 High Price Leica SonyP Samsungri Olympus Nikonce Kodak Cannon Low Price Low Market High Market Share Share Market share 20
  21. 21. Internal Factors Analysis 21
  22. 22. Kodak in terms of core competences Not Core Competence Not s valuable Not able to get Not Rare competitiv e advantage Not costly to imitate Not Nonsubstitutabl e 22
  23. 23. SWOT AnalysisStrength Weakness• Existing Brand equity Rapidly decreasing sales•Distribution Presence revenue•Competitive capabilities •EBITDA are very low• Market advantage•Acquire many strategically •Work force has been cutaligned companies off • Corporate CultureOpportunity Threat• Digital Image •Competition in traditional• New alliances • Demise of silver halide•On line photo sharing and technologystorage •Photo capable mobile phone •Price sensitive •Economic health & terrorism 23
  24. 24. Value chain pre digital age StorageImage Capture Processing Printing- Film Camera - Retailer- Video Camera Processing - All Retail Stores - Reprints Projection 24
  25. 25. Value Chain post digital age Retrieval Image Digitalization Storage Capture Transmission-Digital Camera -Digital Cameras Software -Hard Disk- Video Camera -Scanner at home -Floppy Disk/CD-Online (email) -Digital mini-labs -Removable Storage Printing - Kiosks at retailers -Online Services Manipulation Projection 25
  26. 26. Kodak Strategy based on caseIn 2003, CEO Daniel carp revealed 4 pillars Strategy:1. Managing the traditional film business2. Leading in distributed output3. Growing the digital capture business; and4. Expanding digital imaging services 26
  27. 27. Kodak Strategy….Cont..1. Managing the Traditional Film Business:• Slow exit strategy from film business• Looking forward to digital technology 27
  28. 28. Kodak Strategy….Cont..2. Leading The Distributed Output• Now a day digital photography much easer to view & share photo(i.e. integrated display on camera & sharing through electronic mail or kiosks etc.) and its affecting the photography industries.• Then Kodak is able to bring fewer profit through digital technology (i.e. digital print) instead of traditional printing. 28
  29. 29. Kodak Strategy….Cont..3. Growing the digital capture business• Profit much lower in digital photography than traditional photography• Success in this part of the business is dramatically opposed to the traditional photography business . 29
  30. 30. Kodak Strategy….Cont..4.Expanding digital imaging service• Strategy take place by expanding product & services. For example Kiosks that could print image directly from mobile phone.• In case of expanding service/online service Kodak acquiring companies like Ofodo to boost Kodak Easy Share Gallery. 30
  31. 31. Low Cost Provider Strategy• Introduced cheapest Inkjet printers Cost $150-$300;Almost 50% less then competitor, i.e. HP, Epson, Lexmark.• Ink Cartridges sold $9.99 Black & $14.99 color. Competitor avg. price $ 30.• Encourage more people to print at home. Photo value pack will allows to print at home for 10 cent, 60% cheaper then HP system 31
  32. 32. Reason For Failure1.Core competency became core rigidities2.Lack of market research3.Late mover of digital photography4. Innovation and transformation Failure5.Unwillingness to change 32
  33. 33. Current StrategyCurrent CEO Antonio Perez adopt new strategy, such as_1. Outsourcing Manufacturing2. Huge invest in digital technology;3. Spent hundreds of millions of dollars to build up a high-margin printer ink business to replace shriveling film sales4. Aggressive patent litigation in order to generate revenue;5. Expand current brand licensing program 33
  34. 34. Recommendation• Discontinue unprofitable products• Change middle to high-level management• Launch new and innovative product• Move to another business segment such as movie and entertainment• Focus on high potential products – Kiosks and mini-lab – Online services such as photo printing and sharing• Emphasize on niche market i.e. medical market and professional 34
  35. 35. Conclusion• Great example of strategic failure.• Different models and theoretical concepts were applied to identify key factors that have led the company from where it was to where it stands today.• Lessons we can learn: • External environment can be deceiving • Change happens • Greatest strength can be weakness • Innovation is not the perfect solution • Its not all over till its over 35
  36. 36. Thank you 36
  37. 37. Any Question 37
  • ssusere553c31

    Nov. 27, 2019
  • chilufyakaluba

    Oct. 8, 2019
  • AnggiYosIndra

    Jul. 25, 2019
  • NidhiPal20

    Jun. 15, 2019

    Feb. 22, 2019
  • PrajeethPenugonda

    Dec. 30, 2018
  • 7779296

    Nov. 24, 2018
  • SumitraPurti

    Nov. 1, 2018
  • RahilBanducda

    Feb. 11, 2018
  • TanvirMiraj

    Oct. 25, 2017
  • TanvirMiraj1

    Oct. 25, 2017
  • RahulSoni186

    Aug. 1, 2017

    Jan. 27, 2017
  • asif17186

    Dec. 22, 2016
  • KwesiYamson

    Dec. 18, 2016
  • cunniet1

    Oct. 27, 2016
  • HardikDesai14

    Sep. 18, 2016
  • psmahesh1982

    Jun. 13, 2016
  • jamshed_uddin

    Dec. 7, 2015
  • tomihaetami

    Oct. 12, 2015


Total views


On Slideshare


From embeds


Number of embeds