Color Film Industry

Topics: Photography, Supply and demand, Herfindahl index Pages: 3 (838 words) Published: January 19, 2011
Case Study- Color Film Industry

By: Ankur Garg

Early Color Film Industry was dominated by Kodak and had almost 80% to 90% of market share until 1980’s. Kodak was clearly a price maker and also faced several Antitrust Law suit. In 1921 it faced its first lawsuit as Kodak was monopolizing the market by buying competitors and imposing various restrictions on retailers. It faced lawsuit again in 1954 and 1992. Kodak famous Campaign Slogan “You push the button, we do the rest” made photography accessible to nearly everyone who wanted to take pictures. Industry Concentration: Concentration refers to the number of major competitors on the given market. Industry concentration is of interest to Business to employ the right strategy to maximize their profit and growth; it is also of interest to Government to protect market and consumers. There are different methods of measuring Industry concentration like Herfindahl-Hirschman Index (HHI), Rothchild Index and Lerner Index. We can use the HHI model to see the Industry Concentration of Color Film Industry as shown below: |Scenario 1 |Scenario 2 | |Company |Market Share (MS) |MS2 |Market Share (MS) |MS2 | |Kodak |67 |4489 |67 |4489 | |Fuji |30 |900 |9 |81 | |Konica | 1 |1 |8 |64 | |Agfa |1 |1 |8 |64 | |3M |1 |1 |8 |64 | | | |5392...
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