To:Daniel Carp, CEO, Eastman Kodak Company
Re:Kodak’s Strategic and Industry Analysis
After taking a close look at the photography industry, it is evident that there has been a significant shift from the use of traditional film cameras to a market fully fledged and saturated with modern and updated digital cameras and digital photographic tools. As more consumers adapt to this technological change, the demand for digital cameras in the market grows substantially, which leads to greater competition between suppliers in the growth stage (being that this is still new technology). Standing strong within the competition is Eastman Kodak. More than a decade ago, Eastman Kodak invested well over $4 Billion dollars into its ongoing research and development in order to capitalize on this new growing trend in digital photography. Eastman Kodak currently has the potential to gain a significant portion of the market share. However, this can only be achieved by using a series of carefully strategized plans and implementations. Some obstacles still do exist within the company. There are still some unresolved conflicts between investors and company leaders. Based on all the success that the company has been able to enjoy over the years, it is clear that the strategies applied have been highly effective. The company now has to adapt a similar strategy; only this time there should be efforts made to accommodate the current and ongoing technological changes. In this report, we address the strategic positions of Kodak. After analyzing some of the most important Key Success Factors, the entire Kodak business model and values, and also some financial data, accurate recommendations have been made which are sure to get the company back on track.
Key Success Factors
In order for a company to be successful in any industry, it must adapt to its consumer tastes. The same applies in the photography industry, where companies like Kodak must be able to evolve with new consumer preferences. If a company does not offer the products and services that consumers demand then there is a high probability that consumers will shop elsewhere.
In the photography field it is important that the products and services be not only user friendly, but offers a variety of features and easily transferable data. Some important features include zoom range, video recording, time between taking pictures (on digital cameras), and memory card and the length of time needed to transfer pictures. Companies in this industry must ensure that its products appeal to long time photographers, and are easy to learn for those who are new to the field.
In addition, price and customer awareness are important. Cameras must be affordable, as consumers are becoming more and more price conscious. Also, in an industry where the printing of photos is decreasing, it is imperative for consumers to be made aware of the quality and affordability of professional printing in order to maintain market share and profit. If consumers believe it is expensive to print photos, they will be inclined not to print and store pictures on a disk or print at home with a low quality printer. Top Photography CompaniesKodakSonyCanon
Key Success FactorsWeightRatingWeighted ScoreRatingWeighted ScoreRatingWeighted Score Ability to change w/ consumer preferences0.2040.8051.040.80 Technological Change0.2051.040.851.0
Updated Product Features0.1550.7540.620.30
Printer Friendly Photos0.1030.340.450.5
Overall Customer Satisfaction0.1040.430.330.3
The table below illustrates the Strengths, Weaknesses, Opportunities and Threats for Kodak.
•Brand name / reputation
•Leader in traditional film and film processing
•The printing process available at stores delivered richer and...