Technology and innovation make significant influence in today’s market and it has become the basic requirement for any organization to make the survival of any industry. Therefore, organizations try to implement technology advancements with innovation in order to protect their market position for long time. This report is based on one of famous case analysis of Eastman Kodak Company. Even the Kodak has competitive market position in traditional photography film industry; they lost their market position with digital transformation of photography. Report explains the Kodak case with reference to the selected three strategic perspectives such as Blue ocean strategy, strategy as narrative and transient advantage. Each of these strategies discuss with three initiatives. Three initiatives such as: academic review of the theory, implication to the case study and recommendations for future improvements. Finally, it explains the conclusion and recommendations of the case analysis.

1. EASTMAN KODAK CASE STUDY
ANALYSIS
Advances in Strategy
By
Devika Thennakoon

2. 1
TABLE OF CONTENT
Executive Summary...................................................................................................................2
2.1 Academic Reading ...........................................................................................................3
2.2 Application to the Organization.......................................................................................4
2.3 Implications for Future.....................................................................................................4
3.1 Academic Reading ...........................................................................................................6
3.2 Application to the Organization.......................................................................................7
3.3 Implications for Future.....................................................................................................7
4.1 Academic Reading ...........................................................................................................8
4.2 Application to the Organization.......................................................................................8
4.3 Implications for Future.....................................................................................................9
List of References ....................................................................................................................11
LIST OF FIGURES
Figure 1: Red Ocean Vs Blue Ocean .........................................................................................6

3. 2
Executive Summary
Kodak is a world famous company and highly recognized brand in photography industry and
they made a footprint of the market with their brand name. Company had loyal consumer
base with market leadership. They have diversified business into chemical and healthcare
industry with their market expansion during 1990’s. However, Kodak company declared their
bankruptcy during 2012 and they failed in digital transformation of the business. Kodak top
management was well-aware about the technology development during 1980s but they were
not able to identify the requirement of digital transformation before competitors. CEO of
Kodak, Antonio Perez was empathic that the bankruptcy was not the end of Kodak story.
Company can implement strategic management perspectives to develop their market share
and make the survival of the industry. Company can focus on new advantages rather than
focusing on sustainable competitive advantage. It is difficult to maintain competitive
advantage in modern and highly dynamic business context. Further, Kodak can introduce new
products and services to the market while identifying opportunities of internal and external
business environment through innovation. Report discusses three strategic perspectives with
academic reading and implication to the Kodak case. Blue Ocean strategy, Strategy as
Ambidexterity and Transient advantage will be discussed with the report.

4. 3
01. Introduction
The Eastman Kodak Company was formulated in 1901 at Rochester, New York by offering a
full range of products and services for amateur photographer. Company’s advertising slogan
was “You push the button, we do the rest” and it has become one of leading multinational
corporation with range of capacities such as production, distribution and processing facilities.
They become one of highly recognized brand in the world and company transformed
photography into the form of professional and studio-based activity. The core-founder of the
company Gorge Eastman died in 1932 by making a remarkable name in photography.
However, company has declared on their bankruptcy on 19th
January, 2012 but the CEO
Antonio Perez was not accepted this as the end of the Kodak story (Kodak Case Analysis,
2017).
02.Perspective 1: Strategy as Ambidexterity
2.1 Academic Reading
Duncan in 1976 introduced the concept of ambidexterity with his seminal study and it
explained two learning mechanisms such as exploration and exploitation. Exploration can be
defined as “things captured by terms such as search, variation, risk taking, play,
experimentation, discovery, innovation and flexibility”. In other hand exploration is the
process of search new external knowledge and opportunities. It enhances organizational
ability to adapt changes of the market before competitors. Further, exploitation includes
production, choice, refinement, selection, efficiency, implementation and execution. In other
hand exploitation is the process to gather internal knowledge and opportunities of the
business firm. It helps company to realize incremental changes to achieve the existing market
of the company (Eisenhower, 2014).
Exploration and exploitation play an important role in innovation and it helps organization to
develop ideas, tools and favorable conditions to improve new products or existing products of
the company. Innovation helps organization to make the market survival while facing for the
market rivalry. Organizations implement ambidextrous as a strategy to make innovations.
Organizations should align the strategy and innovation in order to achieve the competitive
advantage. In order to achieve the real meaning if ambidexterity, organizations should make
the balance between explorations and exploitation (O’Reilly &Tushman, 2004).

5. 4
2.2 Application to the Organization
As explained by the case analysis, Kodak Company declared on bankruptcy in 2012 and they
were unable to compete with its transformation. When they create their digital business they
are effectively exited from their traditional operations. Company closed 13 manufacturing
plants and 130 processing labs. Same time, they reduced workforce by 47,000. Even the
company invest billions of dollars in new technologies and new products, company failed to
develop a viable digital imaging business. However, at the beginning Kodak has achieved
notable success with their digital imaging efforts with the leadership of senior executives who
recruited from Apple, Motorola, General Electric, Silicon Graphic and Hewlett-Packard.
However, Kodak was failed in terms of financial performance. They have failed to achieve
desirable technical and market achievements. The problem with the Kodak was slow to
recognize the digital threat of the market. Kodak has highest competition from Canon and
Sony. In 1991, Kodak was the 18th
biggest company of America and fallen to 34th
and
employment was declined from 133,200 to 17,000.
Kodak can implement the strategy as ambidexterity to develop the market share again and
face for the competition with an effective approach. It is very important to identify both
internal and external opportunities to develop the innovative business strategy. Photography
is a dynamic and changing industry. People tend to use digital photography rather than
traditional photography. Company can use both exploration and exploitation in order to
increase organizational capabilities. Ambidexterity is highly considerable about innovation
and they can identify methods to realize changes needed in existing market. Company
employees have identified the requirement of digital photography before the leadership of the
organization. Therefore, it is very important to realize both internal and external business
environment to make innovations.
2.3 Implications for Future
Kodak gained the market leadership until 1980s and they diversified business into different
areas such as chemical industry and healthcare industry. However, company management
would not be able to identify the requirement of digital photography until competitors enter to
the market. Company has to invest more funds on research and development activities in
order to identify the market variations and competitors’ activities. Company management
focused only on maintaining existing business rather than doing innovations. When consider
about the company top management, it was changed with the short period of time. Middle

6. 5
management of the Kodak company was not positive responded on changes. As explained by
the strategy as ambidexterity, company can analyze both internal and external environment to
make innovations. Since the customers are highly driven through digital transformation of
photography, company should develop new products and existing products to achieve
customers’ expectations. Through innovations, company will be able to achieve the market
share again by clearly addressing market requirements.

7. 6
03.Perspective 2: Blue Ocean Strategy
3.1 Academic Reading
Organizations must be innovative and creative to ensure the growth and survival of the
market by offering new product and services or developing existing products or services. It
helps companies to make competitive advantage and make it sustainable. The concept of Blue
Ocean was introduced from west and developed as a concept of strategic management. This
strategy treated as a modern marketing strategy and it encourages businesses to identify a
new Blue Ocean apart from the rivals. In today’s business consideration, organizations are
struggling with the market competition and Blue Ocean helps them to stand out from the
rivalry (Caramela, 2017).
Blue Ocean develops the “moral innovation” and creates values for both organization and its
consumers. There are two methods in creating Blue Ocean. Companies can launch
completely new industries as the first approach. As second approach, companies can expand
boundaries of existing market. In the blue ocean, demand is created rather than fought over.
In creates opportunities in business growth in both rapid and profitable manner. Red Ocean
considers only on existing products and services with existing market shares. Organizations
compete by grabbing for a greater share of limited demand. Red Ocean is more crowded and
depends on the ability to compete with rivalry. It may impact to decline profitability and
market share when performing with existing boundaries of the business (Kim & Mauborgne,
2004). Differences between Red Ocean and Blue Ocean can be figured out as follows:
Figure 1: Red Ocean Vs Blue Ocean
Red Ocean Blue Ocean
Compete with existing market boundaries Create uncontested market opportunities
Beat the competition Make competition irrelevant
Exploit existing demand of the market Create and identify new market opportunities
Make value- cost trade off Break the value- cost trade off
Try to align with differentiation strategy or
low cost strategy
Try to align with simultaneous pursuit
strategy of differentiation and low cost
Source: Kim & Mauborgne, 2004

8. 7
The most powerful strategy is Blue Ocean and organizations should try to develop Blue
Ocean in order to make market leadership. It increases innovation and creativity to develop
brand equity.
3.2 Application to the Organization
Kodak company is a former huge company and it is unbelievable that they failed to take the
advantage of Blue Ocean which was developed by themselves by introducing digital camera
in 1975. Same time they have developed competitive products which have abilities to achieve
customer expectations. However, Kodak did not want to hamper the lucrative business.
Company management was not identified the requirement to be changed and they were too
late to identify that. Huge failure was that company did not capture the future of digital image
industry at early. However, some employees of Kodak see the importance f new digital era of
photography but company did not want to shift the business. Executives of Kodak wrote a
memo by announcing that Kodak’s market will shift from film market to digital market in
1979. Further, they stated that company is starting with professional photography and then to
mass market. Company management believed that this shift will be kept until 2010.
The biggest mistake of Kodak was that they failed to ask a fundamental question of “what
business are we in?”. They only focused to sell more traditional products. Kodak focuses on
Red Ocean and tries to maintain competitive advantage over the period of time with their
existing products and services. Even they think to expand their market share with traditional
business, market was no longer exists.
3.3 Implications for Future
Even a business perform in the market by taking the market leadership, they always should
consider creating Blue Ocean in order to achieve the profitability and long- term survival of
the market. In modern business, it is not only enough to listen customers. Sometimes, they
might not aware what they want exactly. Also, companies should consider bout the
competitors. Kodak has very active competitors such as HP, Canon and Sony. Company
should develop new experience for customers rather than focusing on traditional business. At
the existing market they have diversified product range with including inkjet printers, digital
cameras, retail kiosks, business process outsourcing, customer satisfaction software, printed
circuit boards and professional photographic film. They should develop the new product
varieties in order to create Blue Ocean for Kodak company. They can identify unidentified

9. 8
market opportunities with Blue Ocean. It will be challenging due to high market competition
but they can use Blue Ocean to achieve lost market share.
04. Perspective 3: Strategy as Transient Advantage
4.1 Academic Reading
It is truly difficult to maintain sustainable competitive advantage over the period of time due
to heavy market competition. Therefore, organizations try to achieve transient advantage as a
business strategy (McGrath, 2013). Transient advantage is a business strategy which accepts
when the competitive advantages is short lived. It focused to build continuous new
advantages for the firm. Transient advantage considers on innovation in order to build the
competitive advantage. When a company has something better than rivals, they tend to
imitate it easily. In modern business consideration, it is very difficult to make sustainable
competitive advantage (Team Position, 2014). It has ability to recognize challenges and it
prioritized to build competitive advantage continuously at high speed and low cost (Maier,
2013). Transient advantage does not confuse with the lack of long term strategy and it
prioritizes regular innovation. There are three considerations on transient advantage as
follows:
1. Innovation: Invest more funds in fail fast innovation.
2. Corporate Culture: Corporate culture transforms to be inventive, creative and
aggressive.
3. Change Management: Reduces barriers to change (Mar, 2013).
Consumers and competitors are highly unpredictable. Transient advantage suggested that
organizations should develop new advantages continuously to make the business survival.
4.2 Application to the Organization
Eastman Kodak was one of leading Multinational Corporation of the world and they have
entered into a new product growth stage after the Second World War. They have faced for
huge market competition with the rise of Japanese camera industry in film. Fuji Photo Film
company was made significant expansion on international market. Kodak management was
too late to identify the requirement of digital photography. In the digital era of photography,
consumers can take photos and view automatically. They can download photos on their
computers and edit and post on social medias. Kodak lost their competitive advantage
because of the digital transformation. Hardware and software companies gain the advantage

10. 9
of digital transformation of photography. Kodak’s core competitive advantage was its silver
halide technology and global retail network as well as processing facilities.
Even the Kodak has gain the competitive advantage and market leadership in 1990s.
However, they were failed to make it sustainable due to market competition. Company would
not be able to identify the potential of digital photography and they were focused only on
traditional photography. Technology advancement has made a significant influence on the
market and Kodak declared their bankruptcy in 2012. However, the top management of
Kodak was well-aware about the technology development during the 1980s and they have
developed several new technologies by being the market leadership. Kodak company was fail
at its digital transformation and company middle management was not much supportive for
new strategies of the company. Employees have seen the new era of digital photography but
company management did not accept the ideas from employees.
4.3 Implications for Future
Kodak company can use transient advantage as a strategy to develop their market position
over the competition. As explained above, employees were identified the requirement of
digital era of photography. It is evidence that company has competitive human resource.
There should be a strong relationship between management and employees. Further, middle
management should be more committed to achieve the transient competitive advantages.
They have strong financial position and brand name of the industry. Kodak is highly
recognized brand name and they have loyal customer base. Even they failed to identify the
need of digital transformation, they have maintained their market position for long period of
time. Therefore, company can implement strategies to develop transient advantages rather
than focusing only on make competitive advantage through traditional business approach.

11. 10
05.Conclusion and Recommendations
Gorge Eastman established the Eastman Kodak company in 1901 and they have achieved
significant development with their business. Company diversified its business into healthcare
and chemical industry. Kodak’s digital strategy was formulated under the leadership of three
successive CEOs namely George Fisher, Dan Carp and Antonio Perez. However, Kodak was
failed in digital transformation due to high-tech competition of the industry. They were late to
identify the need of digital transformation and they focused to achieve competitive advantage
through its traditional business. Company middle management was not supportive to
executive business strategies and company has changed their top management within a short
period of time. Further, there was lack of relationship between management and employees at
Kodak. Company was not tried to identify the innovative ideas and suggestions to make
business process improvement. There was huge market competition from key rivals such as
Sony, Fuji Film, Canon and HP. They have done their digital transformation before the
Kodak and company lost their competitive advantage and market leadership. However,
company still has ability to gain their market share again by offering new and diversified
product by analyzing requirement of the current market. Also, company can encourage the
creativity of employees by implementing innovative strategies.
There are three perspectives were discussed as the strategies to implement in order to gain the
Kodak market position again. They can use all these three approaches to provide real digital
experience for customers in photography. As explained by first perspective, company can
highly focus on innovative business processes and ideas to achieve the market leadership.
Further, Blue Ocean theory is suggested to make new product and services rather than
focusing on existing products. Technology is rapidly changing and highly dynamic.
Therefore, Kodak can achieve the first mover advantage by doing new product development
with digital transformation. Transient advantage encourages to focus on new advantages
continuously rather than focusing on competitive advantage. Market competition will not
allow organizations to make sustainable competitive advantage over the period of time. Since
the company has different sources in terms of financial and human resource, they can focus to
develop more than one new advantage before rivals. It helps business to gain their lost market
share again. Also, company management should listen to their employees in making strategic
decisions at the company. Sometimes they may have best and suitable options in different
situation.

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List of References
Caramela, S 2017, Blue Ocean Strategy: Creating Your Own Market, viewed 2 November
2017, <http://www.businessnewsdaily.com/5647-blue-ocean-strategy.html>.
Eisenhower, D 2014, Ambidextrous Strategies and Innovation Priorities: Adequately Priming
the Pump for Continual Innovation, viewed 2 November 2017,
<https://timreview.ca/article/812>.
Kim,W.C & Mauborgne, R 2004, Blue Ocean Strategy, Expanded Edition edn, Harvard
Business Review.
Maier, E 2013, Transient Advantage, viewed 2 November 2017,
<https://www.guidewire.com/blog/general-interest/transient-advantage>.
Mar, A 2013, Transient Advantage Explained, viewed 2 November 2017,
<https://business.simplicable.com/business/new/what-is-transient-advantage>.
McGrath, RG 2013, Transient Advantage, viewed 2 November 2017,
<https://hbr.org/2013/06/transient-advantage>.
O’Reilly C.A & Tushman, I 2004, The Ambidextrous Organization, viewed 2 November
2017, <https://hbr.org/2004/04/the-ambidextrous-organization>.
Team Position 2014, The Rise of Transient Competitive Advantage, viewed 2 November
2017, <https://blogs.position2.com/rise-transient-competitive-advantage>.