Comparison of kodak and fuzi

1. KODAK &
FUJI
Presented By:
Divya Aggarwal

2. EASTMAN KODAK COMPANY
• Introduction
• multinational & a diversified manufacturer of photographic
imaging equipment
• Founder – George Eastman
• Founded in April 1880
• Pioneer in:
– Portable camera (1888) considered as the birth of
snapshot photography
– Slogan “You push the button, we do the rest.”
– Eastman’s commitment bring photography to the greatest
number of people at the minimum cost.
• Provide a fully integrated photographic service supplying
the camera and film through to processing and printing.

3. Highlights
• In 1997 its USA market share was 70%,japan share 7%-
9%,world wide share 44% ,pioneering of inexpensive camera
and easy to use ,
• In 1994, Kodak launch a single use camera called falcon
which was awarded as best photographic product in Japan.
• In 1984,kodak sponsored ABC TV broadcast
• In 1980’s introduced the Ektachem 400 blood analyzer &faced
intensifying Japanese competition in photography , launch
waterproof disposable camera , launch concept called minilabs
, panoramic disposable camera.

4. • Founded in 1934
• Fuji Photo Film had its headquarters in Tokyo,
Japan
• In the 1940s, Fuji Photo entered the optical
glasses, lenses and equipment markets.
• After the Second World War, Fuji Photo
diversified, penetrating the medical (X-ray
diagnosis), printing, electronic imaging and
magnetic materials fields.

5. HIGHLIGHTS
• In 1962, Fuji Photo and U.K.-based Rank Xerox Limited (now
Xerox Limited) launched Fuji Xerox Co., Ltd. through a joint
venture.
• By becoming one of the title sponsors of the 1984 Los
Angeles Olympics(an opportunity that Kodak passed on),
offering cheaper camera film, and establishing a film factory
in the US, Fuji gained considerable market share there
• Fuji focused on providing quality and innovative products to
its US consumers.
• Revenue¥ 2492.6 billion (2015)
• Net income ¥137.1 billion (2015)

6. Strategy Adopted By FUJI
• Fuji focused on building it’s market share in US by adopting
strategies to get share of weaker competitors rather than going
after share of Kodak.
• Fuji focused on the customers and introduced products which
were faster, had brighter colors, and were priced lower than the
Kodak products which helped them to attract many consumers.
they didn’t compromise on the quality while providing products
on lower price. Due to high speed, many photo finishers switched
to Fuji photo paper and other photo supplies.
• Fuji reduced the prices of their print paper so that they are able
to attract more consumer as Kodak products were 20% more
costlier.

7. •Fuji introduced films which were compatible with Kodak
products with lower price so that people who are price conscious
would substitute Fuji films for Kodak Cameras.
•With increasing market share due to faster speed and brighter
color, Company encouraged its salesforce to spend good amount
of time with their distributors so that they build good
professional relationship with them. This helped Fuji films to
generate twice as much revenue than that of Kodak. They
distributed rolls to distributors at steep discounts to avoid losses
due to film ‘expiration’.
•They provided discounts on their multiple roll packs which
helped them in increasing their sales and also their market share.
Kodak was not able to cut its price steeply as that would reduce
their profit margins from its most profitable business of films.

8. • The high spending on R&D enable to produce innovative
products to drive sales further. This helped them to
maintain their competitive advantages as they were able to
produce products which were according to customers needs
• Fuji introduced one-time use camera which was not
followed by Kodak thus allowing Fuji to become leader in
one-time camera products.
• Established a Production plant in US which helped in
reducing the cost of making the films and to maintain their
low price for products, also avoiding any trade dispute with
US government. Fuji adopted the strategy of producing
locally in the US and competing globally.

9. Kodak in Japan
• Kodak entered Japan in 1905 but they ever took market seriously
• In 1977 when they saw potential in Japan market then they
Strengthened their distribution network and marketing system by
starting a Joint venture with Japanese arm Nagase & co but later
they converted the import division of nagase into their own subsidiary
and renamed as Kodak-Japan.
• With this joint venture they were able to Increase their employee from
12 to 4500
• They also tied up with Japanese partner which helped them to
Access camera stores went up – 30k to 60k which also gave Kodak
access to more shelf to display its products.

10. Kodak in Japan
• In Late 1970s Kodak did another Joint venture Bandai (Toy Mfg) –
to sell single use camera.
• Kodak Setup its own R&D and support center to help its
consumers, they also did Symposium in which they met with
researcher, professor, major customers and companies with which
they had strategic alliance. The purpose was improve Kodak’s
image as technology intensive company and symbolized its
commitment in technical presence in japan.
• In 1980 they came out with minilabs concepts in japan in which
film would be processed much faster than conventional photo
processing. Pricing done was little high but it provided competitive
edge over Fuji.
• they Introduced “Panoramic Disposable Camera” as Japanese
were fond of taking pictures in large groups. They Increased control
on Sales & Distribution system. Kodak also Bought Kusuda
Business Machines which had been marketing Kodak’s business
imaging system in japan.
• Kodak Controlled 150 labs against 250 by Fuji.

11. CONT..
In 1986 Kodak advertised heavily in media to increase its popularity.
– They introduced waterproof disposable camera which got popular
among Japanese teenager who enjoyed underwater swimming and
also introduced print film-’Ektar’ with bright color, contrast and
newly designed package.
– Kodak spend $500 million to develop strong base for its Japanese
photographic industry but still they lost market share during 1988
due to low trial rate and low brand recall among Japanese
consumers and company failed to get good retail acceptance.
– In 1994 Kodak introduced new product ‘Falcon’, the product
became one of the best photographic product in japan but was
advertised very unconventionally in Japanese market due to which
it was not a very huge success in terms of sales.

12. Difference in distribution
network
• In US, photo film manufacturers sold its
products directly to retailers and
photofinishers, there are no intermediaries in
between.
• In Japan, photo film industry use
intermediaries to distribute their products. The
distributer mediate between the to parties
(manufacturers and wholesaler/retailer).

13. Distribution network of Fuji in Japan
• Japan is the hometown of Fuji
• Fuji products sold through 2,16,000 Retail outlets
• Fuji maintain good relation with the retailers.
• Fuji controlled 250 Labs for photographic papers
• Fuji had strong ties with the distributors like
Asanuma, Misuzu, Kashimura and Ohmiya

14. • Fuji have exclusive stores for its products
• Government also support the domestic
company
• Better understanding of the home truf
• Higher and better margins to the distributers,
wholesalers and retailers.

15. RECOMMENDATIONS
 Provide cheaper online print services
 Kiosks at mall for instant photo printing
 Smart phone app to order online print
 Make available online services in emerging & competitive
market.
 Promote OTUC in tourist spots
 Companies could market themselves as a superior brand rather
than going into price wars
 Kodak &Fuji should have tied up with more distributors to
reach across wide reach
 Companies could now focus on digital photography.

16. Conclusion
• Both firms saw their traditional business rendered obsolete. But
whereas Kodak has so far failed to adapt adequately, Fujifilm has
transformed itself into a solidly profitable business, with a market
capitalisation,
• While Kodak suffers, its long-time rival Fujifilm is doing rather well.
• Both enjoyed lucrative near-monopolies of their home markets:
Kodak selling film in America, Fujifilm in Japan
• both are highly competitive in nature but somewhere Kodak didn’t
get success in beating Fuji
• Both are poised to implement their strategies