kodak case analysis
TRANSCRIPT
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Kodak
Jennifer KoJenny Quach
David TamayoShinichiro Yamamoto
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Takeaway
• Better organization and communication among divisions
• Invest in corporate culture and consistency• Commitment to R&D projects and forward
thinking
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Kodak’s Business Model
• “You press the button, we do the rest”• Razor blade strategy• Leader in photo-finishing process• Incremental improvements• Vertically integrated
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Digital:The Disruptive Technology
• Business model• Customer behavior• Value chain• Marketing strategy
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Kodak’s Attempt at Digital
• “Film-based digital imaging”• Developed the first digital camera in 1975• Developed the Photo CD in 1991
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Strategy Mistakes• Rejecting opportunities that at first glance
appear too small- Kodak was attached to the same profitability of
the traditional photography business model (1983-1989)
- Spreading its digital investments too broadly
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Process Mistakes
• Strangling innovation with the same tight planning, budgeting, and reviews applied to existing business- Razor-blade business model, insisting film- based digital imaging (1990-1993)- Complacency in its Rochester, New York base blinded the company from technological leaps elsewhere
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Structure Mistakes
• Isolating fledgling and established enterprises in separate silos- Digital imaging operations with silver-halide
photographic division separated across departments
- Inconsistency and confusion of communication between top and middle managers
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Skills Mistakes
• Allowing innovators to rotate out of teams– Changing CEO frequently, thus changing its
strategy about digital transformation
Overall, Kodak avoided risky or innovative procedures and policies, and suffered from a mentality of perfect products, rather than the high-tech mindset of make it, launch it, fix it
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Kodak vs Fuji Film
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19851987
19891991
19931995
19971999
20012003
20052007
20092011
0
50
100
150
200
250
300
Kodak Fuji Film
Net
Sal
es (b
n)
Source: http://www.electronicjournal.co.jp/article/PDF/20120601.pdf
Transition of Sales
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Kodak Fuji FilmComparison of Diversification
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Reasons
• Inconsistency of Management• Top Management• Strategy for transformation of the firm• Communication within the organization
• Corporate culture• Complacency• Sticking with current business model• Too much focus on profitability, ROI, and
shareholders
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Kodak After Case
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Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/
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Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/
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Recommendations
• Printing in the medical field
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Thank You