Eastman Kodak Case Study

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Eastman Kodak
George Eastman, founder of Eastman Kodak, developed the first fully portable camera in 1888. With strict business principles and innovative products he had created a new market with Eastman Kodak as the market leader. Decades later, Eastman Kodak was confronted with serious competitors in its traditional camera and film business. Several Diversifications gave Eastman Kodak temporarily leading positions in different fields in commercial imaging, medical imaging, image storage, thermal printing. During a period of rapid development of imaging technologies Eastman Kodak failed to acquire important patents to widen its product portfolio and for many of these new products return on capital fell way below cost of capital. Divestments followed and under new management Eastman Kodak focused again on the picture business. The new area of digital photography faced Eastman Kodak with many more competitors then the traditional camera and film business.

Eastman Kodak Today
Today, Eastman Kodak is no product champion in the consumer sector anymore like in its silver-halide photography times where it was a pioneer. Through a wide-ranging distribution presence and a good financial management Eastman Kodak´s brand name reputation is still superior but the rise of potential competitors and the rivalry among established companies within industry is immense and still increasing. Kodak Eastman´s strategy changes from many product lines in different markets to a strategy basically focused on the medical, commercial and government market comes to fruition. These are secure markets for Kodak because of the need for long-term-technology for planning military campaigns, weather forecasting and medical imaging. In addition, bargaining power of buyers is more present in the alternating consumer market and the risk of new entry by potential competitors is limited. Kodak still has research and development and marketing innovations for the consumer market and can use parts...
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