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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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