KODAK ITBTI

8/3/2019 KODAK ITBTI

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HOW KODAK CAMEINTO EXISTENCE

1878 - George Eastman was one of the first todemonstrate the great convenience of gelatin dryplates over the cumbersome and messy wet platephotography

1880 - Eastman began commercial production ofdry plates in a rented loft of a building in Rochester,N.Y.

1881 - In January, Eastman and Henry A. Strong

formed a partnership known as the Eastman DryPlate Company

1888 - The name "Kodak" was born and theKODAK camera was placed on the market,


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ABOUT KODAK

Eastman Kodak Company-Established in 1888 byGeorge Eastman.

Slogan : You press the button, we do the rest Provide a fully integrated photographic service

supplying the camera and film through to processingand printing.


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BUSINESS PRICIPLES

Mass

productionat lowercost

ReinventingProfits of

BusinessGrowth

International

Distribution

ExtensiveAdvertising

Growth &Development

CustomerFocus

FairTreatment of

Employees


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PRODUCT RANGE Kodak offers a wide variety of products, spanning

the entire motion picture value chain from imagecapture to post, on through distribution and archivalapplications.

Photo Printing

Instant Cameras

Digital Cameras

Film Cameras

Digital Picture Frames Image Sensors

Motion Picture and TV production

Document Imaging

Consumer Inkjet Printers


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BUSINESS PRESSURES

Challenges faced by Kodak

Lowering Costs:

Traditional films were costlier

People could not see the picture until it was developed

Changing structure and process:

Kodak needs to shift from traditional films to digital pictures

Kodak needs to rethink its strategy to capture the new marketlike digital photography


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BUSINESS PRESSURES

Strategies of Kodak

Vertical integration combined with continuousinnovation and product development.

Kodak introduced a new product developmentmethodology called Manufacturing Assurance

Process(MAP).

Collaborate with experts like HP to enhance the

competency. Digital strategy was to create greater coherence

among Kodaks multiple digital projects.

Previously they had diversification strategy but later

they focused on Imaging business.


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RESPONSE STRATEGIES.

Enter George M.C. Fisher.

Eliminate Debt.

Streamline Management.

Increase Profitability.

Reinvent Corporate Culture.

Refocusing on Imaging.

Digital Imaging Strategy.


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$6 Million of debt was eliminatedthrough sales of subsidiaries.

The company was refocused on digitalas the future of company.

Expenses were slashed.

Management was held accountable.


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STRENGTHGood brand imageBetter retail networkProper quality

maintenance

Online photofinishingservices

WEAKNESSLate innovator

Not keeping up with

changing market trendsPoor marketing strategy

OPPORTUNITYIncreasing opportunity in

European and UK marketAdvent of supermarkets

own brand photo services

THREATEmergence of unfamiliar

brands like SnapfishDecreasing use of home

printersCamera phones

Digital media

SWOT ANALYSIS


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ROLE OF IT AS A CONTRIBUTOR TO THEBUSINESS TECHNOLOGY PRESSURE

The shift from hard product to digital services is ahuge challenge.

Japanese firm Fuji Photo Film Co. invaded onKodaks market share as customers switched to

their products after launching a 400-speed color filmthat was 20% cheaper than Kodaks.

The company failed to recognize the change in theenvironment and instead followed and sticked to abusiness model that was no longer valid for the post-digital age.


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Fujis combination of cost leadership, high quality, and

market aggressiveness forced Kodak to retaliate throughprice cuts and bigger advertising budgets

It has also been hit by a failure to develop new models

fast enough and has tended to focus on the ultra-competitive entry-level market

ROLE OF IT AS A CONTRIBUTOR TO THEBUSINESS TECHNOLOGY PRESSURE


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Kodak developed digital camera technology

Pictures taken with the digital camera, saved intothe cameras memory and downloaded to acomputer

The final output can either be printed or saved onthe computer for later retrieval or posted onto theInternet to be viewed by others.

Kodak realized that software was key to digitalphotography and established relationships withsoftware companies, such as Adobe, Microsoft andLivePix to develop imaging applications that allowusers to easily make sophisticated manipulations toimages.

ROLE OF IT AS A FACILITATOR TO THECRITICAL RESPONSE ACTIVITIES


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KODAK ITBTI

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