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Kodak vs Fuji Case


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Kodak vs Fuji Case

  1. 1. KODAK vs FUJIa battle for global market share Section C – Group 8 Abhishek Anand Kunal Ahuja Nihit Jain Sanjay B K Vaibhav Kukreja Vaibhav Sathe
  2. 2. IntroductionAnalyzing CompetitionMarket DefenseMarket ExpansionExpanding total marketKodak TodayRecommendations
  3. 3. 1997 EASTMAN KODAK COMPANY USA Market Leader – 70% Worldwide share – 44% Japan share – 7-9% Pioneer of inexpensive cameras & easy to use films FUJI Japan Market Leader – 70% Worldwide share – 33% USA share – 17% First to introduce one time use cameras
  4. 4. SPONSORSHIP WARS FUJI film sponsor of 1984 Los Angeles Olympics Strong foothold into US market Kodak sponsored ABC TV broadcast LEGAL WARS Kodak Complaint under US Trade Act, 301 Antitrust allegation against Fuji Fuji rebutted blaming mismanagement of Kodak WTO rejected Kodak complaints as baseless
  5. 5. PRICE WAR Fuji cleared excess inventory at lower price sparked the Price War Fuji experienced strong market growth Kodak did not intend to reduce prices initially thereby letting Fuji gain market share American consumers preferred Fuji as long as it was cheaper 80 60 40 Kodak 20 Fuji 0
  6. 6. Strengths Direct selling and contact Slow response to pricing with distributors and strategy retailers (US) Effective division into Ineffective management SBUs of human resources Growth and presence in markets outside Late response to US, reducing dependability competition of profits on the US market Online portal for receiving print orders Strategic location of Weaknesses business near talent pool e.g. Software business in Silicon Valley
  7. 7. Strengths Competitive low cost advantage Low payouts to employee Strong promotional & branding strategy through Neglecting profitability sponsoring Efficient financing More focus on long term Close ties with Distributors growth in Japan High Operational efficiency, high revenues per employee Strong focus on R&D , allocated 7% of Sales Differentiated product line Weaknesses up (first mover in OTUC ) Web support for printing
  8. 8. Opportunities Competitive low cost US photo industry Market growth potential in unstable and unpredictable developing countries of Subtle change in US Indonesia , China, Brazil & consumer attitude with India acceptance to foreign Concentric diversification products, huge trade into Digital imaging space deficits without any Technological advancement protectionist legislation and increasing application Decreasing margin for in different fields leading manufacturers wider opportunity for Digital Imaging is an innovation increasing trend Increasing consumption of Strong US dollar is films by marketing the idea eroding kodaks export of photography as fun advantage Threats
  9. 9. Market Broadening Focus on R&D – embracing digital technology Concentrating on getting non usersMarket Diversification Concentrating on emerging economies – Brazil Russia India China (BRIC) Developing economies still used Film and not digital cameras
  10. 10. Niche marketing – Price conscious customer segmentCheaper than Fujicolor Super G., but higher profitmargin.No advertising expenditureLimited presence and quantitiesValue packs, multiple speedsSome Cannibalization its own higher productsBut Retaining customers
  11. 11. Retreat in 2002 due to low demandRe-entry in 2004 Acquisition of Chinon Tackling Issues in Distribution channels Launch of new products Primarily marketing Print Systems Secondarily marketing Cameras, films Kodak DX7590
  12. 12. Investing in infrastructure and world classconsumer centric productsPromoting Photography as a fun activityKodak MomentsKodak Moment of the monthPhoto Cards, Gifts and BooksBringing more people to takephotographs
  13. 13. Touchscreen camerasRegaining Momentum Video camerasExpansion in Digital products Digital picture frames Ink-jet printersContinued decline in traditional productsDigital Camera competition from Sony Nikon CannonHigh End Smartphones Apple HTCOnline Photo sharing service Google Picasa Flickr
  14. 14. Products/Services Provide cheaper online print services Tie-up with companies like Smart Phones apps to order print online Kiosks at Mall for instant photo printingPlace Make available online services in emerging marketsPromotion Promote OTUC in tourist spots, malls