Kodak Paper

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Assignment 1: Kodak and Fujifilm

Tina Luke
Professor Hogler
Business 302
January 31, 2013

Academic Integrity Disclaimer
I read and understand Strayer University’s Academic Integrity Policy listed in the Syllabus II of our classroom. In submitting this assignment, I assert that I acknowledged all sources, whether quoted or summarized, in APA citation style. I did not receive unauthorized assistance. I understand that violations of the Academic Integrity Policy will lead to disciplinary action against me, up to and including suspension or expulsion from the University. I understand that all students play a role in preserving the academic integrity of the University and have an obligation to report violations of the Academic Integrity Policy committed by other students.

Name: Abdulrahman Al-emadi Date: 1-31-2013

Introduction: History and Core Business

Eastman Kodak (Kodak) was the largest photographic filmmaker established in 1880 in the world and one of the representative firms which ranked 43th in the Fortune 500 in 1955. However, Kodak retreated to 327th in 2011 and filed protection for Chapter 11 bankruptcy on 19 January 2012. There are various comments on the Kodak’s business failure that Kodak was late to adapt to the wave of digitalization. But Kodak noticed the coming of the digital age in 1970s and invented a digital camera, the first in the world in 1975. Kodak aggressively entered into new business, and promoted M&A, but they could not make use of these strategies for the profit center. Introduce Kodak Professional Digital Camera System which enabled photojournalists to take electronic pictures with cameras equipped by Kodak with a 1.3 megapixel sensor. He also promoted the agreement with Sanofi, a leading French pharmaceutical company, which would result in a number of joint ventures between the companies. At the time of Whitmore’s chairmanship, Kodak continued primarily Imaging, Information, Chemical and Health Segments, though he denied Clay Chandler’s diversification policy. Fujifilm Co., Ltd., established, based on a government plan to establish a domestic photographic film manufacturing industry. The new company inherited the split-off photographic film operations of Dainippon Celluloid Company Limited (Takeshi Yuzawa, 2012). Fujifilm could succeed in diversification and developing new technologies incubated in the company. Cosmetic is one of the fields found in the process of film production. Shigetaka Komori, CEO of Fujifilm, has spent around $9 billion on 40 companies since 2000, and slashed costs and jobs. In one 18-month stretch, he booked more than $3.3 billion in restructuring costs (Fujifilm Holdings Corporation, 2012). He was lucky because there were little shareholder pressure for short-term performance, which made it easier for Fujifilm to pursue Komori's vision. American shareholders might not have been so patient. ‘Surprisingly, Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one.’ Fujifilm succeeded serves as a warning to American firms about the danger of trying to take the easy way out: competing through one's marketing rather than taking the harder route of developing new products and new businesses (K.N.C., 2012).

Approach to Management

The managements of Fujifilm and Kodak has pursued the knew the digital age was surging towards us to embrace innovation Fujifilm Chief Executive Shigetaka Komori said in a recent interview. "The question was what to do about it. Fujifilm did was to look further than simply moving to digital photography from analog. Instead, the company tapped its chemical expertise for broader uses, such as drugs and liquid-crystal display panels. Fujifilm acted to survive the advance of digital photography by restructuring and venturing into new businesses. In 2005 and 2006, the company performed large cut in...
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