Kodak in Paradigm of Competitors Analysis and Interfirm Rivalry

History of Kodak
‡ Came with slogan "you press the button, we do the rest," in 1888

‡ 1913 .‡ 1902 . ‡ 1908 .world's first commercially practical safety film using cellulose acetate base instead of the highly flammable cellulose nitrate base. the company's present worldwide headquarters .The introduction of EASTMAN Portrait Film ‡ 1914 .The KODAK Developing Machine simplified the processing of roll film ‡ 1903 .Kodak's worldwide employment passed the 5.KODAK Non-Curling Film ‡ 1907 .000 mark.A 16-story office building.

‡ 1928 .000 mark.The company introduced its first motion picture film designed .Motion pictures in color became a reality for amateur cinematographers with the introduction of 16 mm KODACOLOR Film. ‡ 1927 . ‡ 1921 .Kodak developed aerial cameras and trained aerial photographers ‡ 1920 .‡ 1917 .Kodak employment throughout the world passed the 20.The Eastman Savings and Loan Association was established to help employees save and to finance home purchases. ‡ 1929 .Tennessee Eastman Company was organized to manufacture wood alcohol for film base.

Products ‡ ‡ ‡ ‡ ‡ ‡ Professional Films Papers and Materials Digital Photo Printers Image Enhancement Chemicals Software .

self-respecting way ‡ Reinvest profits to build and extend the business . relied on some basic principles for his business: (Taken from Kodak History. founder of Eastman Kodak.George Eastman.) ‡ Mass production at low-cost ‡ International distribution ‡ Extensive advertising ‡ Focus on the customer ‡ Foster growth and development through continuing research ‡ Treat employees in a fair.

Model of Interfirm Rivalry: Likelihood of Attack and Response Drivers of Competitive Behavior Awareness Motivation Capability Outcomes Interfirm Rivalry: Attack & Response Likelihood of Attack First Mover Incentives Likelihood of Response Type of Competitive Action Actor s Reputation Dependence on the Market Resource Availability Ability for Action and Response Relative Size Speed Innovation Quality Competitive Market Types Slow. Standard or Fast Cycle Competitive Outcomes Sustained Competitive Advantage Temporary Advantage Evolutionary Outcomes Entrepreneurial Growth-Oriented or Market-Power Actions Competitor Analysis Market Commonality Resource Similarity Feedback .

Competitors Analysis and Interfirm Rivalry ‡ Drivers of Competitive Behavior ± Awareness Do the company managers understand the key characteristics of competitors? ± Motivation Does the company have appropriate incentives to attack or respond? ± Capability Does the company have the necessary resources to attack or respond? .

Answer is Yes ‡ Kodak has own Brand ‡ They spent 5.19% of sales on R & D for Innovation purpose ‡ Globalization ‡ Standardized products ‡ Capable employees (for taking the good and on time decisions) .

but increases the likelihood of response where interaction occurs.Competitors Analysis and Interfirm Rivalry ‡ Competitor Analysis ± Market Commonality ‡ Do firms compete with each other in multiple markets? ‡ Multipoint competition tends to reduce competitive interactions. .

Kodak Competitors ‡ ‡ ‡ ‡ ‡ ‡ Canon Sony HP Agfa Fujifilm Nikon .

7% (7 Digital SLRs 24 Point & Shoot) Sony 15.Market Share & use of technology ‡ ‡ ‡ ‡ ‡ ‡ Canon 18.8% (3 Digital SLRs 11 Point & Shoot) Kodak 10% (No Digital SLRs 24 Point & Shoot) HP (No Digital SLRs 7 Point & Shoot) Nikon (5 Digital SLRs 17 Point & Shoot) Fujifilm .

Competitors Analysis and Interfirm Rivalry ‡ Competitor Analysis ± Resource Similarity ‡ Firms with similar resources are more likely to be aware of each other s competitive moves? ± Firms are less inclined to attack a firm that is likely to retaliate ± Firms with dissimilar resources are more likely to attack ± Do competitors possess similar types or amounts of resources .

3% rate. in comparison to Canon's 29. .22% of sales on R&D. ‡ Nikon SLR shipments grew at the 71.Existing Rivalry ‡ Cannon and Sony are using almost same technology ‡ Companies are trying to differentiate their products ‡ Cannon spent 8.1% rate.

1%. on the top second you can find Nikon D60 SLR camera with 10.1% market share.9% market share. ‡ DSLR cameras in Japan on 2008. on the third-place the Nikon D80 with 10.6% and onto 4th place you can find the Nikon D40 with 9. you can see that the top selling camera was the Canon rebel XSI with 19. .In 2006 2008 Canon lose their market share because .

Canon lost 5% of its market share and went down to 42% market share. whether Nikon has gained 7% and went up to 40% market share in the DSLR market. when Nikon had only 33%. .‡ On 2006 Canons has ruled that DSLR market with 47% market share. Only a year later.

.‡ On 2008 Canons lost another 2% and went down to 38% DSLR market share and Nikon went down to 37% DSLR market share. Both companies lost some market share because a new player was entered the market (on 2006) and that was Sony. Sony purchased Konica Minolta in start producing their own DSLR cameras line called 'Alpha'.

Target of Sony ‡ Gathered 20-25% of market shares. .

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Competitors Analysis and Interfirm Rivalry Interfirm Rivalry: Attack & Response Likelihood of Attack ± First Mover Incentives (advantage can be substantial) .

Canon came up with the digital technology and Kodak came in 2002 with digital camera and their launching and installing the machines and change their whole setup time was 4 years . At that time they had 60-70% gross margin and they did not go in digital camera for only 30% market shares.Kodak is not a First Mover Kodak made a digital camera in 1984 but they did not want to disturb their strong market shares.

Likelihood of Response ± Dependence on the Market ± Resource Availability .

Sony also having huge resources and working in the multiple markets.Dependence on the Market ‡ Market Dependence ± Kodak company is not dependent on the one market because of high competition and low margin so they entered in to the printer market. ‡ Competitor Resources ± The company competitors like Canon. .

Resources availability Core Competencies (In Current Scenario) Differentiation Strategy ‡ Improved Features and characteristics ‡ Medium Price ‡ High Customer Service ‡ Standardized Products ‡ Rapid Innovation .

Thank you .

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