While traditionally Kodak designed and manufactured its own cameras, digital cameras can use technology from different firms and the manufacture is frequently outsourced to China to lower costs. Brand loyalty or domination of the market no longer exists; the consumer buys whatever meets their needs that day.
Analysis Kodak has tried to transform itself from an aged old film technology business into a fast and digital cultured business but has failed as a result of decline in sales in the United States Deutsch, Through the help of drug and discounts stores, Kodak was able to add self-service kiosks to encourage people to print their own digital photos Deutsch, But after the first oil shock inoperating costs of those controls became prohibitive because they consumed a lot of oil.
Possibly, in its efforts to continue to be good to the local community, Kodak let its costs get out of control. It overcame gaps in its own knowledge by partnering with diverse sources including the University of Tokyo, its customers, end-users and sometimes even existing as well as potential competitors, such as GE and Siemens which had their own aspirations in this industry.
It certainly was for film. While that explanation has some merits, it is far from the full picture. Kodak, along with several others, does dominate the digital camera market, but profits are slim to non-existant, and manufacturing has been outsourced.
The only exception may be for consumers who print at home and have a preferred paper, not caring about cost, and then the value creation and appropriation are with the manufacturer of the paper. It can build consumer trust in digital that Kodak already has in film Smith, The consumer is as likely to buy a Kodak camera as they are to buy a no-name camera if it has features and is lower priced.
Other companies facing similar technological discontinuities would do well to remember the critical role of integration of internal and external knowledge to achieve innovation, which would, in turn, improve their chances of successful adaptation.
With the highly competitive markets for cameras and a largely indistinguishable market for printing, the value creation is essentially with the consumer.
We also feature solutions to case studies from other leading graduate business schools including Stanford, Darden, Wharton and Ivey. When compared to the fact that if they had acted aggressively when the Mavica was introduced and had the firms culture been innovative, not extraordinarily conservative and focused on one product that would never change, the firm could be dominating digital imaging today, instead they are one among many competitors.
An industry executive commented Fisher may have been able to transform the culture at the very top, but that he was not able to change the culture of the middle managers who did not understand the world digital that Fisher was trying to transform Kodak into.
This caused a substantial decline in market sharein film for Kodak that continued into the early s. Why then is Kodak struggling to survive despite a strong start in the promising — and still rapidly growing — arena of digital imaging?
Although it was a pioneer in the technical aspects of digital imaging, it lacked skills in areas such as lens making and manufacturing making efficient and reliable electronic devices to successfully commercialise products based on its innovations in digital imaging.
Unlike other case solutions made available on the Internet without competent evaluation of their merits, Berkeley Research case solutions are peer reviewed by a panel of case analysts prior to being offered on our website. Indeed for much of the twentieth century Kodak was an American industrial icon — at one point enjoying a similar status as tech giant Apple does today.
He reengineered the company from top to bottom. It is a market that is highly competitive on both features and price. Digital imaging is far different.
Opportunities A few opportunities exist for Kodak. The external knowledge from these partnerships was combined with a number of other elements including its own internal knowledge, some bold strategic bets being the first to use an Intel microprocessor in a dusty, dirty and hot factory environment and a far-sighted leadership which had the vision of global leadership.
This paper presents a Berkeley Research case study analysis and case solution of a strategic management and marketing Harvard Business School case study by Gavetti, Henderson, and Giorgi on Eastman Kodak company and the digital revolution in photography.
Kodak was financially secure with cash flows flowing from its existing photography business during the early s Grant, Kodak is based in Rochester, New York, where it was the largest employer and has a towering influence.
As of Thursday 19 JanuaryKodak filed for bankruptcy protection Neate, and has until to reshape its business and exit out of the bankruptcy plan Business Spectator, Much of the film developing occurred in independent kiosks, drug stores, and specialized firms; all utilizing Kodak products.
Recently, Kodak lost 90 percent of its market value Weiss, and is facing the threat of extinction Associated Press, b. Kodak focused too heavily on the extremely competitive entry-level market and failed to develop innovative products fast enough Grant, Its tm must constantly rsrch these nds.
The short tenure of each CEO made working towards a distant goal of industry leadership in the fast evolving technology of digital imaging rather difficult.
So where did it go wrong? Kodak factfile Kodak was founded by George Eastman incredited with inventing the first photographic film in roll form Kodak was added to the Dow Jones Industrial Average inremaining a Dow component for seven decades A Harvard study in found that Kodak accounted for 90 per cent of film sales and 85 per cent of camera sales in the US In Kodak employedworldwide.
They were slow to bring new products to market Grant, Kodak could focus on its core business and develop new technologies Gavetti et al. Fisher wanted another Motorola, where the managers debated ideas openly, but at Kodak the managers apparently did what they were told by their superior.Considering such Kodak events from the case study ‘Kodak and Digital Revolution’ by Gavetti et al.
(), strategies adopted by the leadership positions during different time can be analysed and evaluated to explore the management of innovation and change. Examines Kodak's strategic efforts and challenges as the photography industry evolves.
After discussing Kodak's history and its past strategic moves in the new landscape, the case 'Kodak and the Digital Revolution' questions how CEO Daniel Carp can use digital imaging to revitalize Kodak.
A rewritten version of an earlier case. Step 4-SWOT Analysis of Kodak and the Digital Revolution A case SWOT stands for Strengths, Weaknesses, Opportunities and Threat.
It is the model which can be used to evaluate the internal and external environment of the company. Case Study: Eastman Kodak. In this case study, we propose and defend a recommended strategic direction for the company to implement in the next three to five years based on a balanced assessment of the company’s options.
We first conduct a detailed analysis of Kodak’s internal and external environments to understand the opportunities. Jan 18, · Watch video · In Kodak’s case, management did a reasonable job of understanding how the parts of the enterprise (including its photo finishing partners) interacted within the framework of the existing technology.
Kodak and the Digital Revolution (A) Case Solution, The introduction of digital imaging in the late s had a deleterious effect on traditional business model of Kodak.Download