Question

1. Identify at least three relevant Environmental Factors that both Kodak and Fuji Film faced with the changing environment of the photographic industry and how consumers take pictures. Explain how three forces you chose impact these companies and the industry. (Remember you will find the Five Environmental Forces from chapters 1 and 3 that will help you answer this question.)

Answer 1

Both Kodak and Fujifilm produced cameras; however the core business was centered on film and post-processing sales. Kodak believed in a silver halide strategy which similar to Gillette’s or that of printer manufacturers: who give away razors or printers to make money on blades and ink cartridges.The trouble started in 2000s when colored photo print became less preferred over digital. Digital cameras saw a boon but got vanished soon. The core business of film and post-processing; and the commercialization of digital cameras didn’t not help in revering losses. Gradually digital cameras also last the flair in bringing photographs only on social media shares.

Why Fuji survived and Kodak did not:

1 diversification: Fuji fims realized that organization may not rely on the photgrahy and hence diversifed in varied lines. Fujifims also develped M&A route as per market intellgence.  The group made active use of M&A. By acquiring companies that already penetrated a market and combine their assets with Fujifilm’s expertise. With this the company could meet its manufacturing and produce good numbers. the company also acquired Toyoma Chemical in 2008 to stay in business. It also forayed in the healthcare segment, Fujifilm also brought a radiopharmaceutical company. It also reinforced its in-house existing joint ventures such as Fuji-Xerox which later became a consolidated subsidiary in 2001.

2. Industry understanding:  Kodak made a poor analysis and it also insisted to derive fruits from the decaying photo industry which was taken over by digital and social media since 2011 and 2012. With FB, the photo sharing option has moved totally to digital and made the print photographs market plummet to a very large extent.  

3. Kodak did understand later that the digitization is coming in with FB, IG but the company used Ofoto (merged with Kodak) to make people print digital pictures instead of sharing platform itself. The failure was more becuase of lack of understanding the user and their convenience and the market demand.

Kodak did not interpret the fact that with time, evolution happens. Trying to derive money / turnover / sales etc.  is the primary focus; but understanding the cask cow and what can be the star performer in nick of time makes or breaks a company. Obsolete and technoogy - both words are similar in context to operating organizatios till date!