Question

Do a basic research about Kodak, a company that faces an uncertain future. Please assess the company's strengths, weaknesses, opportunities, threats give the rapid changes in the digital age.

Answer 1

Kodak is one of the photography market's oldest firms, established over 100 years ago. This has always been the iconic, American organization on the leader's position. For its innovations, its cameras and films have become known throughout the world. The strength of Kodak was that it was one of the most recognizable and resource brands that made it possible to create new technologies. The company has remained, with virtually no competitors, the world's leading film provider since Kodak's formation. That's before Fuji Photo Film's launch, which now tops Kodak in earnings per share and is known as the number two industries. It is clear that a significant shift has taken place from using traditional film cameras to a fully fledged and competitive market of new and modified digital cameras and digital imaging devices. Kodak not only sells film pictures, but Kodak is a sufficient number of lines to offer products and services (diversification of products), such as digital images, printer cartridges, paper and innovative equipment markers that sell Kodak globally. In addition, the Kodak's overall quality goal and aim is to achieve Full Customer Satisfaction. This is done by using the correct methods for process improvement (e.g., Zero Defects, Supplier Certification, Lean, Six Sigma, etc.).

SWOT analysis:

Strengths - The strengths of Kodak were its role in brand equity and distribution. Kodak had brand recognition and distribution around the world after nearly a century of global leadership in the photography industry. Kodak had invested heavily in R&D before the 1990's. In fact, Kodak's century of photographic image innovation and development gave Kodak unparalleled depth of understanding of image capture and processing.

Weaknesses - It had low potential for product innovation. The market share also decreased because the rivals supported the market needs. Kodak diversified into life sciences under Whitmore's leadership. Although it was a proper fit to enter the healthcare imaging (diagnostic equipment) market, it was not a wise decision to enter healthcare activities (nutritional supplements) and pharmaceuticals. For a company like Kodak that has a very strong association with photography, it would not help the company to enter a market that does not fit in with its brand.

Opportunities - Eastman Kodak's expertise in film and paper press, color processing, are used. It was known worldwide for the best quality movies and cameras. His more than 100-year journey has helped to gain experience in his Endeavor and excellence. Eastman Kodak was a highly integrated corporation that manufactured its own R&D and components. In the 1980's and 1990's, changing global markets and cost pressures threatened the way business was done. Thus the expertise, the intellectual capital of the business is also affected and the repercussion in its core competence has begun to decrease.

Threats - Fuji was Kodak's biggest traditional competitor. Fuji has been the Kodak's major competitor overseas throughout the 1970's and 1980's, especially in Asia, where each has about one-third of market share. In the United States, at the beginning of 1997, Kodak had a strong but diminishing market share of 80%. Through aggressive marketing and the establishment of strong relationships with distribution outlets, Fuji has also built up a worldwide reputation for cost, performance and marketing that has helped Fuji to follow strongly among professional photographers and gradually with mainstream consumers.

Final Analysis - It is clear from the above analysis that the firm should focus on ST Strategy.i.e to capitalize on the strength and avoid threats. The current strength and capabilities of the business are important for the future. Kodak's significant disadvantage is the failure to respond to changes in the photography industry. It would be fatal for its future if not corrected. Business environment is constantly changing; the willingness to embrace the transition is the main success driver for the industry. In order to be competitive, the gap between the revolution and the evolution of the strategy should be minimized. From the above SWOT analysis, it is recommended that follow-up actions improve the strategy of the company and respond accordingly.