DONE BY Romaric ZEIDA Aboubacar GARBA Michele HENRY KILY Mansour FALL Mamadou habiboulaye DIALLO

2337 2340 2346 2349 P0559

KODAK
STRATEGIC ANALYSIS
Directed by Ph.D M. WAHABI
1

Kodak’s ultimate aim is to remain to be one of the most successful business stories. Thanks to its 130 years of life, this company has the background and the experience required to keep being competitive.

2

Mission
Kodak searches continually to provide to its consumers the best solutions in the domains of photographic products and to keep giving a good return in investment to the shareholders

3

Goals

Keep to stay the wold’s leader in the sector of photography. Diversify its activities toward other different fields Pursue a general expansion policy and to look forward the acquisition of companies performing in other sectors

4

Objectives     To be one of the most important actors in pharmaceuticals and biotechnology thanks to the Life Science Division and Sterling Drug Take profit from the 100 billion dollars market of the pharmaceutical industry Promoting the 35mm cameras and equipment which present a large growth potential Focus on the photofinishing segment by acquiring other sepcialized companies 5 .

EXTERNAL ANALYSIS 6 .

PESTEL ANALYSIS Political / Legal    Political stability in USA George Bush Senior’s presidency and end of the Cold War The economical sector is ruled by antitrusts laws which direct the mergers .acquisitions or joint ventures processes 7 .

PESTEL ANALYSIS Economic  Relative stability of the US economy Fast growth of the international exchanges Large growth perspectives on the photography sector and specially in Europe   8 .

PESTEL ANALYSIS  Social Photographic devices become more and more used in the familial environment Photography’s use is no longer limited to the professionals 9 .

PESTEL ANALYSIS  Technological Evolution toward the digital quality of pictures Particulars can do themselves the photofinishing (development) with domestic laser printers 10 .

PESTEL ANALYSIS  Ecological  Important use of lithium specially for batteries Recycling problems risen by this material People become more and more sensitive to this situation   11 .

Five factors of Michael Porters 12 .

13 .

One of the reasons that there is a high entry barrier is that each company which are currently in this industry have strong brand image leaving a harder job for new company to get in. Additionally. 14 . existing companies can take advantage of the absolute cost advantage achieved by large volume of shipments and economies of scale.1) Risk of new entry by potential competitors The barriers to entry are very high.

Canon in the photocopier market. 15 .2) Rivalry between established firms Established players in shipping service industry compete rigorously for a market share. Established companies have to strive for continuous improvement in quality. and innovation. Sharp. as demonstrated by the battle between KODAK and Xerox. There is very low switching cost for consumers in this industry making rivalry even more intense. the company who responses first to the constantly changing environment wins. lowering price.

16 .3) Threat of substitute products There are not many substitutes product in electronic imaging and computer mass strorage devices and Photofinishing market because of the level of the technology that used in that sector. In other hand there are not also many substitutes product in pharmaceuticals and biotechnology market.

so they buy in large quantities and can turn to different suppliers easily. 4) Bargaining power of suppliers  The supplier power within this industry is fairly low. 17 . This is because the companies that are operating in that sector are very huge.

Cost associated with switching from one company to another is very low.5) Bargaining power of buyers The bargaining power of buyers in photofinishing. Therefore. buyers can turn to a company that offers lower price and service innovation with ease. electronic imaging and computer mass storage service industry is high. 18 .

Keys of Success Factors Finance: The return on investment on the PHOTOGRAPHY INDUSTRY is very high. because the growth in the industry that is attributable to factors according to Standard and Poor’s Industry surveys: new and improved products and services.  Human Resource: the PHOTOGRAPHY INDUSTRY has now a strong employee base because the need to create a good environment that encourage the innovation.  19 . and a population mix that has increasingly shifted toward a relatively affluent and free spending 25.to 40year-old age group.

INTERNAL ANALYSIS 20 .

Value Chain of Kodak 21 HRM R&D Image Capture Finance Digitization Retrieval Storage Transmission Printing Manipulation Projection .

Kodak’s SBU  Kodak has four distinct submarket     Digital cameras Home printing Online services Retail kiosks and mini-labs 22 .

Kodak’s strengths • • • • Innovation Distribution channel Leadership in photographic market Silver-halide technology 23 .

Kodak’s Weaknesses • • • • Size and bureaucracy Corporate Culture Non rational Escalation of commitment Kodak has a lot of Unprofitable product which decrease it’s profit 24 .

Core Competences/Distinctive Capabilities 25 .

4 KODAK’s current assets can cover all of its current liabilities.0 The current assets can immediately cover all of the KODAK’s currents liabilities 26 . Quick ratio: Current assets-inventory / Current liabilities = 1. that is a desirable situation.Financial Ratios (2010) Current Ratios : Current assets / Current liabilities = 1.

7% The rate of return on total assets employed by FEDEX is not appreciable in this year.Asset turnover: Sales / Total turnover = 1. 27 . KODAK has a problem of Return on Investment.0 KODAK’s total assets are used efficiently to produce sales Return on Investment: Net income Before Taxes/Total assets = -10.

Competitor Analysis Kodak’s main competitors include Canon. Nikon. Fuji 28 . Sony.

Canon SCORES 1 •Price •Advertising •Market Share •Product Design •Technology •Product Quality •Distribution 2 3 4 5 29 .

Nikon SCORES 1 •Price •Advertising •Market Share •Design •Technology •Product Quality 2 3 4 5 30 .

Fuji SCORES 1 •Price •Advertising •Market Share •Design •Technology •Product Quality 2 3 4 5 31 .

STATEGIES FORMULATION 32 .

33 . Kodak must improve its way to communicate with its employees It also must improve its corporate culture It must stops manufacturing product that decreasu its profit and stops acquiring without profitability Kodak must not only focus on quality but also on low cost product in order to keep its customer. •Life science drug division and sterling drug acquisitions OPPORTUNITIES •Investment •Multi-Cultural marketing •Expansion in the field of Health care •Digital Image • New alliance. Kodak must do some studies in order to block its competitors and avoid to neglige any product It has to make some studies about its competitors and get informations about them. It should make more market studies for detecting the need of customer in order to sale the most qualified product. taking risk and move quickly •Organizational and management change. acquisitions and merger THREATS •Competitors: FUJI is taking its place in the photographic industry •The introduction of electronic imaging •Shortage of silvers that made them vulnerable in the foreign market Kodak must go on in growth strategy and continue to innovate new products that can be profitable for them.SWOT analysis STRENGTHS WEAKNESSES •Size and bureaucracy • Corporate Culture • Non rational Escalation of commitment •Kodak has a lot of Unprofitable product which decrease it’s profit •Kodak had diverted its attention from the retail of photo film business •A good brand image among retailers provides them with a measure of comfort •Leadership in photographic market •Innovation.

BCG Matrix Market Growth rate = 17299-13541/13541 = 27.75% 34 .

it means that i has market share in rapidly growing market the recommended strategy is growth. 35 . add resources and build the business further based upon market projections.BCG Matrix The market growth rate of KODAK is High and it is known as the giant of the photographic industry and health care. so it is positionned on the Stars case.

Mc kinsey ‘s Matrix  Evaluation of internal factors: 36 .

Weaknesses: In the average. 37 . So it must try to adapt itself in order to avoid the risks that might come from its own organization.Mc kinsey ‘s Matrix Evaluation of internal factors:  Comments:   Strengths: Kodak must completely take an advantage from his strengths because it has abilities in certain domains which are very necessary in this sector of activity. Federal Express has some weaknesses that can shoot it down or ruin it.

38 .Mc kinsey ‘s Matrix  Evaluation of external factors: Comments: Opportunities: The coefficient obtained from this framework is 2. The most important to take care is the high level of competition. so there is an average risk that the company must focus on.45.7. So we can say that the company can take advantage from the environment on the average because it’s a very complex environment which is not stable and certain. Threats: We have a coefficient of 2.

33)= 3 Y axis: -3.5 Average: (5.33 Industry strength (IS): Growth potential : 5.33 Conclusion: Directional vector coordinates: X axis: -1.The Strategic Position and Action Evaluation (SPACE) Matrix  Space’s matrix Elaboration Competitive advantage (CA): Brand image : -1 Technological know-how : -1 Control over distributions: -2 Average: ((-1)+( -1)+(-2))/3= -1.5 Profit potential : 4 Capital intensity : 3.33+(+4.33 39 .5+4+3.33+(+3)= -0.5)/3= 4.33 Financial strength (FS): Return on investment : 1 Liquidity : 5 Leverage: 2 Working capital : 4 Average: (1+5+2+4)/4 = 3 Environmental stability (ES): Competitive pressure : -4 Technological changes : -4 Barriers to entry into market: -2 Average: ((-4)+(-4)+(-2))/3= 3.

The Strategic Position and Action Evaluation (SPACE) Matrix 40 .

41 .

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