Kodak Case Study
Kodak Case Study
2) Compare traditional photography to digital imaging. What are the main structual differences? How have value creation and value capture changed from traditional to digital photography?
The main difference between traditional photography and digital imaging is that digital imaging doesn't need physical films to take pictures and papers to see the pictures taken.
This changed the customer experience of the whole process of enjoying pictures as below.
Traditional
Photography
Digital Photography
Eliminating of three processes, which were used to be necessary, buying films, visiting retailers, and waiting moved customers focus more to on cameras than films. Also as average digital camera price goes down, the sales increased promptly (Exhibit 11 and Exhibit 7, 8).
For Kodak, before the digital cameras, the equipment (traditional camera) was just a tool to let people use their film and papers, especially for common family customers. However, as the value chain has changed, the company had to face competitions with not only traditional film makers, but also with camera manufacturers like Canon and Sony. Even needed to compete or cooperate with high tech companies. Also, confronting the potential cannibalization within the company restrained Kodak from transformation to digital image business and made the situation worse for the company.
In results, this digital imaging innovation has threatened the long-lasted hegemony of Kodak.
Kodak 3) What is Kodak's current position in digital imaging? Would Kodak's position be different had the company adopted a different digital imaging strategy in the eighties and the nineties? Evaluate Kodak's strategy starting in the mid-eighties.
Kodak still has biggest market share in the film market and the comparatively strong position in digital camera market, but it had some difficult time in the Photofinishing Market and has been loosing money in digital camera sales.
Digital Camera: Kodak has
2) Compare traditional photography to digital imaging. What are the main structual differences? How have value creation and value capture changed from traditional to digital photography?
The main difference between traditional photography and digital imaging is that digital imaging doesn't need physical films to take pictures and papers to see the pictures taken.
This changed the customer experience of the whole process of enjoying pictures as below.
Traditional
Photography
Digital Photography
Eliminating of three processes, which were used to be necessary, buying films, visiting retailers, and waiting moved customers focus more to on cameras than films. Also as average digital camera price goes down, the sales increased promptly (Exhibit 11 and Exhibit 7, 8).
For Kodak, before the digital cameras, the equipment (traditional camera) was just a tool to let people use their film and papers, especially for common family customers. However, as the value chain has changed, the company had to face competitions with not only traditional film makers, but also with camera manufacturers like Canon and Sony. Even needed to compete or cooperate with high tech companies. Also, confronting the potential cannibalization within the company restrained Kodak from transformation to digital image business and made the situation worse for the company.
In results, this digital imaging innovation has threatened the long-lasted hegemony of Kodak.
Kodak 3) What is Kodak's current position in digital imaging? Would Kodak's position be different had the company adopted a different digital imaging strategy in the eighties and the nineties? Evaluate Kodak's strategy starting in the mid-eighties.
Kodak still has biggest market share in the film market and the comparatively strong position in digital camera market, but it had some difficult time in the Photofinishing Market and has been loosing money in digital camera sales.
Digital Camera: Kodak has