Kodak versus Fuji

The Case

What were the forces transforming the market for Kodak / Fuji ?

Forces Transforming the Market ‡ Acceptance of foreign brands by Americans. ‡ Rise of Fuji ‡ Retail revolution. with focus on price ‡ Trend towards digital cameras .

while Kodak¶s-even after the massive layoffs-. the World Trade Organization in Geneva issued a ³sweeping rejection of Kodak¶s complaints´ about the film market in Japan. ‡ Fuji made profits only in Japan.000.Differences ‡ Kodak sold directly to retailers and photo studios. ‡ Fuji¶s worldwide output per employee is $285. ‡ Fuji sold through distributors.is $155.000. ‡ After nearly two and one half years of court rulings. .


scanners. microfilm products. The Consumer Imaging Segment: Traditional films. application software.In the restructuring of Kodak. papers. The Kodak Professional Segment: Traditional films. certain digital cameras and printers. digital cameras. chemical and processing equipment as well as services 4. photofinishing. audiovisual equipment. processing. scanners and other equipment . photographic chemicals. papers. and chemicals 3. four main segments have emerged: 1. Other (Digital and Applied Imaging) Imaging Segment: Motion pictures. and the Advanced Photo System 2. cameras (including one-time use). The Health Imaging Segment: Medical films. printers.

Kodak Consumer Digital ‡ ‡ ‡ ‡ Digital cameras Accessories Digital Picture frames Video cameras Graphic Communications ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Printers & Presses Flexographic Unified work flow Computer to plate Color & Screening Proofing Scanners Security Solutions Enterprise .

1934 1960 1980 1985 2006 .

Business Products FUJI Consumer Products FUJI Digital Cameras 3D Image Products Films & Cameras Supplies Medical Systems Life Science Systems Graphic Systes Photofinishing products Motion Picture Films Recording Media Office & Industry .

. Analyse the market shares of the 2 brands.Graphically depict the market.

80% $397.000.00 Source: 1997 Photo Marketing Association (PMA) Figures .00 Photo Accessories 3.400.000.000.00 Camera Repair 1.00 Video Accessories 0.00 Film Sales 20.00 100.00 Video Camcorders 0.50% $355.840.00 Other $468.00 Digital Imaging 6.50% $6.000.00 Portrait Studios $14.40% $908.600.400.200.377.20% $454.400.70% $99.50% $71.2 Billion Dollars Segment Percentage Dollars Photoprocessing 43.00 Consumables 0.00% $142.000.90% $127.800.000.000.70% $1.00 Conventional Cameras 9.000.00 Albums 2.000.800.000.00% $2.Table 1: 1997 Amateur Photo Market $14.000.00 Frames 3.50% $781.


One-time Use Camera sales up by 23% .

What should the competitive strategies be ? .

yet declining. 70 percent U. market share. ‡ Fuji had 17% ms in Japan. market share.S. ‡ Fujifilm has approximately 17 percent U. Agfa of German and Konica of Japan each have less than 2 percent market share. ‡ Other minor players in the U. . which constitute 7 percent.S.S. but Kodak had 7-9% in Japanese market. ‡ Eastman Kodak has a commanding. market include private-label brands.Market Shares ‡ Global shares ± Kodak 44% and Fuji 33%.


Our average price did not go down that much. it is really just sharpening prices. ‡ Fuji had excess inventory of 2. ‡ ³I would not call it a price war.5 millions rolls of film ± dumping market. but we did get more aggressive to protect market share.´ . however. Fuji cut prices on film by 10 to 15 percent after Costco Wholesalers decided to go exclusively with Kodak.The War ‡ 1996.

‡ While Fuji was a worldwide sponsor of the Olympics. its competitor. became a ³sponsor´ of ABC television¶s broadcasts of the games and the µofficial film¶ supplier to the U. track team. sponsored by Fuji.Kodak¶s ambush marketing ‡ U. . Kodak.S.S. Olympic games.


‡ Profits and sales at Kodak have been eroding throughout the 90¶s ‡ Kodak posted a net profit for the first quarter of 1999. bolstered by steady film sales growth in China and Brazil.S. . low-end digital cameras in the U. as well as. they must now increasingly include digital technology into the mix to stay at the forefront of the ³photographic and imaging´ industry..Kodak ‡ Kodak realizes that for all of their historical success¶ throughout the world.

. ‡ ³Globalization through localization´ ‡ In 1987. and by the time Kodak caught up with the technology. ‡ Relationship with distributors. Fuji was the first to introduce one-time use cameras. today the figure is roughly 40 percent. Fuji produced just 3.Fuji ‡ 7 percent of sales on research and development to maintain a competitive advantage.5% of its goods outside of Japan. ‡ In 1986. Fuji established a lead in one-time use cameras that Kodak never experienced with traditional film.

Fuji Photo Film has three core business systems: 1. and equipment 2. industrial materials. office automation systems. and data recording media . Medical diagnostic systems. Information Systems: Graphic systems. motion picture film. Imaging System: Color films. and chemicals 3. magnetic audiovisual media. Photofinishing System: Photofinishing equipment. cameras. paper. electronic imaging.

print and share their pictures anytime. anywhere. conventional and digital printing and document imaging. the company is committed to a digitally oriented growth strategy focused on helping people better use meaningful images and information in their life and work.Kodak is the world¶s foremost imaging innovator. and Creative Professionals rely on KODAK technology to uniquely tell their story through moving or still images . Businesses effectively communicate with customers worldwide using KODAK solutions for prepress. Consumers use Kodak¶s system of digital and traditional products and services to take. With sales of $10.7 billion in 2006.

especially in-store and on-line photofinishing. . We will continue to work closely with our Retailers to keep pace with the new technologies and media. We see trends of consumer usage and behaviour towards Digital Printing really takinghold. printing and presenting consumer memories. storing.Fuji The focus is really on solutions and promoting our band-width of imaging and information products. as it relates to all aspects of shooting.

life sciences. .Fuji FUJIFILM Corporation (NASDAQ:FUJI) brings continuous innovation and leadingedge products to a broad spectrum of industries. optical. medical systems. based on a vast portfolio of digital. including electronic imaging. flat panel display materials. fine chemical and thin film coating technologies. graphic arts. and office products. photofinishing equipment.

and other imaging equipment.. .. 1934 The company is also known under the name FUJIFILM and is one of the world's leading suppliers and manufacturers of photographic film and paper.Fuji Photo Film Co. Japan. Ltd. headquartered in Tokyo. cameras. was established on January 30.

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