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M The Us-based Eastman Kodak company founded by ¯
  in

Waterville, New York.
M ðecause the death of his father, he discontinued his education at the age of V

ðeing interested in photography

M Eastman pioneered the development of dry plate process and filed his first patent
in 1879 related to gadget that prepared dry gelatin plates

M ðy the end of 1882 the company had generated enough revenue to afford a new
factory in Tennessee to produce a steady supply of materials for making films

M ðefore 1980s it enjoyed a 

 status in the photographic film and paper
industry in the US with more than 85% marketshare
mont«
M Started manufacturing cameras, and also expanded company operations overseas
setting up the Eastman Photographic materials company limited in London in V

M The mompany settled on the name Eastman Kodak mompany in V

M Kodak entered the Japanese market in the 1900 & setup its first distribution outlet
in V

M Through this outlet, products manufactured in the US were distributed to Europe,

the Far East, and Australia
M ðy 1960, Kodak had Vemployees on its roll and was generating sales of two
billion
M mompetitors were many national and international players such as
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Fuji
M It founded in V , Fuji Photo had its headquarters in Tokyo, Japan

M The mompany first entered the US market in V as a supplier of label film and
established its first subsidiary in 1965

M The mompany spent Æ of its revenue on R&D annually

M ðy 1991 Fuji had established 15 manufacturing plants in V countries outside Japan

 Product Launched
aa
M Kodak launched its Super 8 movie
camera which has larger film format
M In 1983 Kodak launched similar film
in 4 speed
M In 1980 Kodak introduced waterproof
disposable cameras
M In 1994 Kodak came out with a new
product, a single use camera, called
Falcon.
M It launched ³panoramic disposable
camera´
p
M In 1967 Fuji planned to introduced
the movie system
M In 1976 Fuji introduced the 400-
speed color film
M In 1983 Fuji brought out a new high
resolution film in two speed
M In 1986 it launched one- time -use
cameras
Fuji as a Threat
M Fuji is the main competitor of Kodak .Over the years since its entry into the US
market ,Fuji had been constantly gaining Kodak marketshare in the photographic
film and paper market

M The growth rate of Kodak¶s highly profitable photography business had slowed by
2%-4% per year

M In 1990s the marketshare of Fuji was just 10% but was increased faster during
1993-1997 when Fuji¶s marketshare increased to 17% moreover

M Kodak¶s revenue had come down from $ 15.97 billion in 1996 to $ 14.36 billion in
1997. The most worrying factor for the Kodak¶s management was the more than
5% points decline in its US marketshare
Strategies of Fuji
M Fuji provided buyers of Japanese camera with free film rolls but Kodak didn¶t

M In 1977 Fuji reduced the prices of its print paper. The price was lower than that of
Kodak

M Fuji¶s products were 100% compatible with Kodak cameras & Kodak film

M Fuji gained more form the price cuts in the US

M Fuji adopted the strategy of producing locally and competing globally

M The mompany encouraged its salesforce to spend more time with distributers thereby
building good professional relationship with them

M In 1997 Fuji reduced prices by 50% on its multiple roll film packs in response to this
move Kodak also slashed its prices
Strategies of Kodak
M In 1970 Kodak formed several joint venture, one of them was Kodak ±Nagase after
setting up a subsidiary Kodak increased its workforce to 4500 from a mere 12

M Kodak setup its own R&D center and opened a technical assistance center

M Kodak sold its new range of photographic film named fed Kodacolor at 38.3% less
than the market piece of other available films

M In 1986 Kodak advertised heavily in the media to increase its popularity

M The mompany constructed a huge yellow sign symbolizing Kodak¶s name

Reason of Rivalry
M Fuji had 18.8% marketshare in the US whereas Kodak had a mere 7-9%
marketshare in Japan

M Fuji had strong ties with four main distributors ± Asanuma, Misuzu, Kashimura,
and Ohmiya in the US on the other hand Kodak had only one distributer, Nagase in
Japan
M Kodak claimed that Fuji sold its photographic paper in the US by charging as low
as one-fourth of what it charged in Japan & Netherlands

M In 1995 the rivalry between Kodak and Fuji intensified when Kodak filed a petition
under section 301
Target Audience
M ¯

Rural & semi urban area, urban
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M Income: Low, Lower middle, Upper
M 2

All
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M Occasion:Special
M ðenefits: Quality
M User status: All
M Usage rate: Medium
M Attitude toward product: Enthusiastic, Positive
m

M Reason for Kodak¶s failure in Japan was due to the significant difference between
the distribution networks in Japanese and the US market

M Kodak should do first whatever Fuji do