Fuji adopted aggressive strategies to gain market share from weaker US competitors like Kodak by cutting prices, marketing more effectively, and building strong relationships with distributors. This included providing free film rolls with camera purchases while Kodak did not, and reducing prices on film and paper below Kodak's prices. When Kodak refused to sponsor the 1984 Olympics, Fuji agreed and gained exposure in the US market. Fuji consistently outspent Kodak on R&D and used more technologically advanced and hipper marketing that appealed to consumers more than Kodak's sentimental campaigns.

1. FUJI’S STRATEGY
"Fuji's greatest strength is that they always
make sure that consumers are ready to buy
their new products, and they actually get the
products to the consumers."
- Toby Williams, an analyst at SBC (Swiss
Bank Corporation)Warburg in Tokyo,
Fortune Magazine, May 1998.

2. FORTUNE MAGAZINE
“What's ailing Kodak? Fuji while the U.S. Giant
was sleeping, the Japanese film company cut
prices, marketed aggressively, and now is
stealing market share”.
- By EDWARD W. DESMOND
REPORTER ASSOCIATE JEREMY
KAHN October 27, 1997

3. CONT…
 FOCUS ON BUILDING ITS MARKET SHARE BY ADOPTING STRATEGIES TO GET THE SHARE
OF WEAKER US COMPETITORS RATHER THAN THAT OF KODAK.
 FUJI PROVIDED BUYERS OF JAPANESE CAMERA WITH FREE FILM ROLLS BUT KODAK
DIDN’T
 IN 1977 FUJI REDUCED THE PRICE OF ITS PRINT PAPER. THE PRICE WAS LOWER THAN
THAT OF KODAK
 FUJI’S PRODUCT WERE 100% COMPATIBLE WITH KODAK CAMERAS AND KODAK FILM
 FUJI GAINED MORE FROM PRICE CUT IN US

4.  Reason 1- Distributor in US ditched Fuji for
Kodak
 Reason 2- Access to incredibly cheap
borrowing--around 2.5%--thanks to
Japan's record-low interest rates.
( US- 7%, Kodak has more than $1
billion in short- and long-term debt)
SOURCE: FORTUNE MAGAZINE OCT 1997

5. CONT….
 IN 1997 FUJI REDUCED ITS PRICE BY 50% ON ITS MULTIPLE FILM ROLLPACKS
 FUJI ADPOTED THE STRATEGY OF PRODUCING LOCALLY AND COMPETING GLOBALLY
 THE COMPANY ENCOURAGES ITS SALESFORCE TO SPEND MORE TIME WITH
DISTRIBUTERS THEREBY BUILDING GOOD PROFESSIONAL RELATIONSHIP WITH THEM.
 FUJI HAD STRONG RELATIONSHIP WITH 4 MAIN DISTRIBUTORS – ASANUMA MISUZU,
KASHIMURA AND OHMIYA IN THE US ON THE OTHER HAND KODAK HAD ONLY ONE
DISTRIBUTER NAGASE IN JAPAN

6. OLYMPIC 1984
 Olympic czar Peter Ueberroth(The architect of the 1984 Summer Olympic
Games at Los Angeles) believed that Kodak was the natural choice to be the
exclusive film sponsor, but Kodak wouldn't bite. Even after Ueberroth visited
Rochester to make his pitch, Kodak refused to pay just $1 million, far below the $4
million floor for sponsorships that Ueberroth had established. So he approached
Fuji, which in those days was still barely known in the U.S. market. Ohnishi said
yes on the spot and eventually committed around $7 million.
SOURCE: FORTUNE MAGAZINE OCT 1997

7.  In technology too, Fuji has shown that it can set the pace by
consistently spending about 7% of sales on R&D.
 In Late 90’s Fuji has built a reputation for price, quality, and
sharp marketing.
 Fuji A Hipper, More Technologically Oriented
Marketing
 Kodak Sentimental
 In 1993, Fuji ran a highly successful, award-winning TV
campaign obliquely directed at Kodak. The killer line:
"Pictures should be nostalgic; your film shouldn't."

8. CSR
 Enhanced governance of affiliates by FUJIFILM Holdings America
 Celia A. Spence
(VP, Environment, Health & Safety Dept. FUJIFILM Holdings
America Corporation)
 The Environment, Health & Safety (EHS) Department of FUJIFILM
Holdings America Corporation supervises all environmental
conservation and occupational health and safety activities at Fujifilm
Group companies in the United States.

9. +++++++++++++++++++++++++++++++
+
PRINT DISPLAY PROJECT (PDP)- Kodak Print Maker is NOT a real photo processor. It does not
use silver based paper and does not use chemicals for processing.

10. +++++++++++++++++++++++++++++++
+
PRINT DISPLAY PROJECT (PDP)- Kodak Print Maker is NOT a real photo processor. It does not
use silver based paper and does not use chemicals for processing.