Kodak Case Analysis
CASE: Kodak Business Imaging Systems Divisions
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Problem
How does a multinational corporation choose between various manufacturing sites for its products? Kodak’s business Imaging Systems Division designed, manufactured, marketed and sold microfilm readers and printers. More than 50% of reader/printer businesses were outside the U.S. Kodak’s readers and printers were manufactured in two plants; Rochester, NY and Manus, Brazil. The Rochester plant served the world market except Brazil. The Brazil plant served only the Brazilian Market. An underlying problem that forced Kodak to evaluate the location of its manufacturing sites is increasing pressure from foreign competition.
Kodak was losing market share to their primary competitors; European and Japanese companies. Customers were beginning to shift based on Low price and better value. Multinational corporations have to be prepared to deal with both local and foreign competitors. It is hence essential to the company to establish a competitive advantage. In order to be able to compete companies have to address a number of issues including various costs, management, research etc. Kodak’s Business Imaging Systems Division needed to also consider whether manufacturing only, development only, or both was appropriate in each country of operation [ (Kodak Business Imaging Systems Divison, 1992) ].
As a result of the ongoing process of globalization, companies have to include the option of selecting an international location in their strategies [ (Harm-Jan Steenhuis, 2004) ]. Kodak selected a high level manufacturing executive to handle the responsibility of examining plant location aspects of manufacturing strategy [ (Kodak Business Imaging Systems Divison, 1992) ] The Business Imaging Systems Division (BISD) of Kodak identified the plant location issue as being central to their competitive strategy.
Keith and Andy as part of their analysis had to come with a model that would be useful to Kodak and other
By
Problem
How does a multinational corporation choose between various manufacturing sites for its products? Kodak’s business Imaging Systems Division designed, manufactured, marketed and sold microfilm readers and printers. More than 50% of reader/printer businesses were outside the U.S. Kodak’s readers and printers were manufactured in two plants; Rochester, NY and Manus, Brazil. The Rochester plant served the world market except Brazil. The Brazil plant served only the Brazilian Market. An underlying problem that forced Kodak to evaluate the location of its manufacturing sites is increasing pressure from foreign competition.
Kodak was losing market share to their primary competitors; European and Japanese companies. Customers were beginning to shift based on Low price and better value. Multinational corporations have to be prepared to deal with both local and foreign competitors. It is hence essential to the company to establish a competitive advantage. In order to be able to compete companies have to address a number of issues including various costs, management, research etc. Kodak’s Business Imaging Systems Division needed to also consider whether manufacturing only, development only, or both was appropriate in each country of operation [ (Kodak Business Imaging Systems Divison, 1992) ].
As a result of the ongoing process of globalization, companies have to include the option of selecting an international location in their strategies [ (Harm-Jan Steenhuis, 2004) ]. Kodak selected a high level manufacturing executive to handle the responsibility of examining plant location aspects of manufacturing strategy [ (Kodak Business Imaging Systems Divison, 1992) ] The Business Imaging Systems Division (BISD) of Kodak identified the plant location issue as being central to their competitive strategy.
Keith and Andy as part of their analysis had to come with a model that would be useful to Kodak and other
Cited: Bert Meijboom, B. V. (1997). International Manufacturing and Location Decisions:Balancing configuration and co-ordination aspects. International Journal of Operations & Production Management , 790-805. Ferdows, K. (1989). Managing International. New York. Harm-Jan Steenhuis, E. J. (2004). Assesing Manufacturing Location. Production Planning and Control , 787. Kodak Business Imaging Systems Divison, 2-2 (September 29, 1992).