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    Kodak Case Study

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    March Nim
    Kodak made four major strategic errors: 1) failing to adapt to new technology; 2) inconsistent leadership; 3) incorrectly forecasting emerging markets; and 4) poor decision making. In contrast, Fujifilm predicted the digital transition, leveraged competitive advantages, adapted by diversifying into new products like cosmetics, and made quick decisions. The major lesson is that companies must invest in R&D, innovation, and listening to customers to adapt to changes and avoid complacency.

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    Kodak Case Study

    Uploaded by

    March Nim
    354 views10 pages
    Kodak made four major strategic errors: 1) failing to adapt to new technology; 2) inconsistent leadership; 3) incorrectly forecasting emerging markets; and 4) poor decision making. In contrast, Fujifilm predicted the digital transition, leveraged competitive advantages, adapted by diversifying into new products like cosmetics, and made quick decisions. The major lesson is that companies must invest in R&D, innovation, and listening to customers to adapt to changes and avoid complacency.

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    Kodak made four major strategic errors: 1) failing to adapt to new technology; 2) inconsistent leadership; 3) incorrectly forecasting emerging markets; and 4) poor decision making. In contrast, Fujifilm predicted the digital transition, leveraged competitive advantages, adapted by diversifying into new products like cosmetics, and made quick decisions. The major lesson is that companies must invest in R&D, innovation, and listening to customers to adapt to changes and avoid complacency.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    354 views10 pages

    Kodak Case Study

    Uploaded by

    March Nim
    Kodak made four major strategic errors: 1) failing to adapt to new technology; 2) inconsistent leadership; 3) incorrectly forecasting emerging markets; and 4) poor decision making. In contrast, Fujifilm predicted the digital transition, leveraged competitive advantages, adapted by diversifying into new products like cosmetics, and made quick decisions. The major lesson is that companies must invest in R&D, innovation, and listening to customers to adapt to changes and avoid complacency.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    KODAK

    CASE
    STUDY
    FOUR ERRORS IN
    STRATEGY THAT
    KODAK MADE
    FOUR ERRORS IN STRATEGY
    THAT KODAK MADE
    1. Kodak failed to adapt, re-emerge and re-invent new technology.
    •Kodak was overly reliant on its own products and failed to consider the possibility of new
    products, new manufacturing processes, and new markets. They've forgotten about their
    consumers' and competitors' behavior.
    •2. Kodak’s leadership has been inconsistent.
    •With each new top executive, the company's approach shifted. They've had a philosophy of flawless
    things rather than the high-tech approach of developing it, launch it, and fix it," says Harvard Business
    School's Rosabeth Moss Kanter, who has counseled the company. They failed to adhere to their
    strategic management procedures.
    FOUR ERRORS IN STRATEGY
    THAT KODAK MADE
    3. Kodak failed to read emerging markets correctly.
    They were enamored with their product because they were one of the greatest at the time and failed to
    forecast consumer behavior. "They expected the new Chinese middle class to buy a lot more movies."
    They did for a while but eventually realized that digital cameras were more appealing. Many people
    went from having no camera to having a digital camera in a matter of months.“

    4. Kodak also had failed in decision making which resulted to a waste of time and capital.

    Kodak believed that the thousands of compounds developed by company researchers for use in the film
    could be transformed into medications. However, the company's pharmaceutical business failed, and it
    was sold in the 1990s. It also tried to buy ready-made businesses in the 2000s, rather than investing the
    time and money to create innovations in-house.
    FOUR POSITIVE
    STRATEGIC MOVES
    THAT FUJI MADE.
    FOUR POSITIVE STRATEGIC
    MOVES THAT FUJI MADE.
    1. Fujifilm predicted and prepared for the future.

    Fujifilm foresaw the digital apocalypse as early as the 1980s. It devised a three-pronged strategy: wring as much
    money as possible from the film industry, preparing for the digital transition, and building new business lines.

    2. Fujifilm applied the competitive advantage and became aware of its competitors’ standing.

    Its culture didn’t help matters. Kodak had become a complacent monopolist, despite its strengths—heavy investment
    in research, a rigorous approach to manufacturing, and solid links with the local community. Fujifilm exploited this
    flaw by securing the 1984 Olympic sponsorship in Los Angeles while Kodak sat on the fence. Fujifilm’s significantly
    less expensive film was able to break into Kodak’s home market thanks to the attention. Fujifilm was able to diversify
    its business more successfully. Collagen is found in both film and skin. Cosmetics companies would like you to
    believe that your skin oxidizes in the same way that images do.
    FOUR POSITIVE STRATEGIC
    MOVES THAT FUJI MADE.
    3. Fujifilm adapts, re-emerge and re-invent new products.

    Fujifilm was able to diversify its business more successfully. Collagen is found in both film and
    skin. Cosmetics companies would like you to believe that antioxidants keep skin from fading,
    just as photos do. Antioxidants are represented by 4,000 chemical compounds in Fujifilm's
    library of 200,000. As a result, the company created the Astalift cosmetics range, which is
    already available in Asia and will be available in Europe later this year.
    FOUR POSITIVE STRATEGIC
    MOVES THAT FUJI MADE.
    4. Fujifilm made an immediate decision and implementation.

    Fujifilm has converted itself into a firmly successful company, with a market valuation of $12.6
    billion, compared to $220 million for Kodak. Both companies realized that digital photography
    would not be successful in and of itself. "Wise entrepreneurs recognized that switching from
    making 70 cents on the dollar on film to maybe five cents at most in digital was not a good idea,"
    Mr. Matteson says. However, both companies had to adjust; Kodak was the slowest of the two.
    MAJOR LESSON WE
    CAN TAKE AWAY
    FROM THIS CASE
    STUDY?
    MAJOR LESSON WE CAN TAKE
    AWAY FROM THIS CASE STUDY?
    Business forecasting should be used. It aids in reducing market uncertainty and anticipating market
    change, as well as improving internal communication. It will also aid in the development of plans for
    the organization.

    Fujifilm's strategy, which we may learn from, is to invest in R&D in order to continuously innovate,
    even with their most successful items. This strategy entails releasing new products to the market as
    well as updating existing ones to keep up with trends.

    Customers should be listened to since it is the finest approach to learn how and what they think. And
    knowing your clients is crucial to making excellent product decisions, which can help you build a
    product or service that people will truly appreciate. In the case of Kodak, they became complacent,
    assuming that their customers would always buy their products and would ignore their competition.

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