International Bussiness
CASE 1
(a) What was the critical catalyst that led Kodak to start taking the Japanese marketseriously?
Kodak: The Changing StrategiesBy 2000, Kodak, the company thatpioneered the imaging industry byinventing easy-to-use cameras andphotographic film, was in deep crisis. Withthe advent of digital cameras in the mid1990s, Kodak found its sales declining asconsumers preferred the new cameras,which did not use films. The growingpopularity of digital cameras led to a slumpin film sales, which was a major revenuegenerator for Kodak. Additionally, the newtechnology attracted a lot of competitionfrom traditional as well as new players. Inorder to maintain its lead in the industry,Kodak decided to adopt the new technologyand reinvent itself from a camera and filmmanufacturer to a digital imaging company. The case discusses the evolution of thedigital camera market and the shrinkingfilm business. It also highlights the strategiesadopted by Kodak to embrace the newtechnology to sustain its leadershipposition.
(b) From the evidence given in the case do you think Kodak’s charges of unfairtrading practices against Fuji are valid? Support your answer.
On December 5, 1997 the US lost its first major trade dispute in the newly formedWorld Trade Organization(WTO). The high-profile case pitted photographic paper and film giantsKodak andFuji against one another along with their respectivegovernments, the US and Japan. Kodak claimed that Japan's photographic market &distribution structure, "deny[ed] [Kodak] fair and equitable market opportunities."
1
Essentially, Kodak was arguing that it could not penetrate theJapanese market beyond a certain level due to structural restraints, governmentintervention, and back-room policies that favored Fuji.
8
On the other hand, Fuji & theJapanese government contended that Kodak's poor showing in Japan was due todeficient marketing, management, and investment in the Japanese market. Fuji and theJapanese government refused to enter into
(a) What was the critical catalyst that led Kodak to start taking the Japanese marketseriously?
Kodak: The Changing StrategiesBy 2000, Kodak, the company thatpioneered the imaging industry byinventing easy-to-use cameras andphotographic film, was in deep crisis. Withthe advent of digital cameras in the mid1990s, Kodak found its sales declining asconsumers preferred the new cameras,which did not use films. The growingpopularity of digital cameras led to a slumpin film sales, which was a major revenuegenerator for Kodak. Additionally, the newtechnology attracted a lot of competitionfrom traditional as well as new players. Inorder to maintain its lead in the industry,Kodak decided to adopt the new technologyand reinvent itself from a camera and filmmanufacturer to a digital imaging company. The case discusses the evolution of thedigital camera market and the shrinkingfilm business. It also highlights the strategiesadopted by Kodak to embrace the newtechnology to sustain its leadershipposition.
(b) From the evidence given in the case do you think Kodak’s charges of unfairtrading practices against Fuji are valid? Support your answer.
On December 5, 1997 the US lost its first major trade dispute in the newly formedWorld Trade Organization(WTO). The high-profile case pitted photographic paper and film giantsKodak andFuji against one another along with their respectivegovernments, the US and Japan. Kodak claimed that Japan's photographic market &distribution structure, "deny[ed] [Kodak] fair and equitable market opportunities."
1
Essentially, Kodak was arguing that it could not penetrate theJapanese market beyond a certain level due to structural restraints, governmentintervention, and back-room policies that favored Fuji.
8
On the other hand, Fuji & theJapanese government contended that Kodak's poor showing in Japan was due todeficient marketing, management, and investment in the Japanese market. Fuji and theJapanese government refused to enter into