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Case Study Analysis

Eastman Kodak’s Quest for Digital future
Module Name:

Advances in Strategy
MN7131
Assignment - 1

Course: Master of Business Administration

London Metropolitan University
ESOFT Metro Campus
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Table of Contents
List of Tables..................................................................................................................2

List of Figures................................................................................................................2

1.0 Introduction to Eastman Kodak...........................................................................2

2.0 Perspective 1: Strategy as Design.......................................................................3

3.0 Perspective 2: Strategy as Experience.................................................................8

4.0 Perspective 3: Strategy as Ideas........................................................................12

5.0 Conclusions and recommendations...................................................................14

6.0 References.........................................................................................................15

Assignment 1 Coursework Assessment Criteria..................................................16

List of Tables
No table of figures entries found.

List of Figures
Figure 1 Three strategy Lenses of Management thoughts........................................3
Figure 2 Strategy as design process...........................................................................4
Figure 3 the application of design model of management thoughts..........................4
Figure 4 The Kodak Value Chain Pre-digital Age....................................................6
Figure 5 Eastman Kodak ’s “Fundamental Challenges”...........................................6
Figure 6 The Kodak Value Chain Post-digital Age..................................................7
Figure 7 Strategy as experience.................................................................................9
Figure 8 Financial data of Kodak operational performance.....................................10
Figure 9 Strategy and variety or idea.......................................................................12
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1.0 Introduction to Eastman Kodak

Eastman Kodak Company which was simply know as Kodak, is an American
technology company which was engaged in business segments such as print systems,
photographic films, Micro 3D printing and packaging, and software and solutions.
The company was founded by George Eastman and Henry A Strong in 1888.
Headquarters of the company is located at Rochester, New York in United States
(Kodak, 2018).

On January 19, 2012, the Eastman Kodak Company declared bankruptcy as a result of
the decline in sales in the photographic film industry. In January 2013, the United
States District Courts for the Southern District of New York has approved the
“financing” for the company to emerge from its bankruptcy. As a result of this, Kodak
sold most of their patent rights to other successful technological companies such as
Apple, Google, Face book, Amazon, Microsoft, Samsung etc. for over US$ 525
Million and gained finances. At the end of 2013, the company has emerged from
bankruptcy and moved into different business segments such as digital printing,
graphics, entertainment and commercial films (Kodak, 2018).

In this paper, it is expected to analyse the case study “Eastman Kodak’s Quest for as
Digital Future” which was prepared by Robert M. Grant (2012). Here it is expected to
use strategic lenses for the analysis of above case study. Theoretically, there are three
angles from which strategy can be viewed and implemented in a company: Design,
Experience and Ideas.
Figure 1 Three strategy Lenses of Management thoughts

Source:[ CITATION Min90 \l 1033 ]

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2.0 Perspective 1: Strategy as Design

Strategy as designed is the first perspective of strategy lenses. Accordingly, it is
believed that, strategy development can be a systematic process which is clearly
defined by forces and constraints of an organization. Consequently, it requires a
mechanism which includes appropriate techniques with the support of a clear strategic
direction to evaluate the success or failure of strategy. The design of strategic
management is a responsibility of the top management because strategy is typically
associated with the views and expectations of owners and board of directors
[ CITATION Joh99 \l 1033 ] .Strategy as design considers as the process which
involves the rational and analytical in nature and it requires evaluating and looking for
the “Best Option”. This is shown below.

Figure 2 Strategy as design process

Source:[ CITATION Min90 \l 1033 ]

According to design school, the management considers the strategy formulation as a
process of conception which looks at the origin of organizational process and it needs
to ensure the fitness between the internal capabilities and external capabilities. In
addition to this, the management needs to consider the threats and other opportunities
by looking and Key success factors from the external environment. With the analysis
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of strengths and weakness of the organization, the management needs to analyze the
distinctive competencies during the formulation of strategies during the strategy
formulation and implementation; the management needs to consider managerial
values and social responsibility. This process is shown below Figure.

Figure 3 the application of design model of management thoughts

Source:[ CITATION Min90 \l 1033 ]

The relevant case study of Eastman Kodak has been involved in past decades and it
has strengths and weakness through operational value delivery process. With the
analysis of Eastman Kodak, It shown that Eastman Kodak is a leading and
multinational brand with the global presence through production, promotion and
distribution strength by dominating the industry at the global. Eastman Kodak was
recognized as highly valued and well known brand in the global brand. Eastman
Kodak has recorded a growth potentiality by expanding the current Strategic Business
Units (SBUs) to chemicals, healthcare industry and it leads to expanding the core
business areas through the business diversification strategy.

Eastman Kodak has faced the big global competition and rivalry while running the
business operations. The industry has dominated by Sony, Canon, Fuji and other
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industry operators and they have introduced many innovative and competitive
offerings to the market place. In addition to this, Competitors has invested on
continuous R&D interventions for sustaining the advantages in the industry. In
addition to this, Kodak has faced the challenge of achieving and sustaining the
competitive advantages in the industry.Thus, sustanable diffreciaiton and innovation
has become the viable strategies for Kodak.

Before digital transformation, Kodak value chain is shown below and it has strengths
of areas of the traditional photography process through Figure 4.

Figure 4 the Kodak Value Chain Pre-digital Age

Source: (Case study support, 2018)

Eastman Kodak has invested on digital transformation to face the emerging business
challenges including global competition and other business challenges through the
technology development. Kodak has faced these strategic issues and challenges due to
the transformation of traditional technology to digital technology. As per the Figure 6,
the digital technology has invented many products and services to the target
customers. During the tranformaiton, Kodak has faced the resource management and
allocation issues to required sections and divisions.Becouse, the limited financial
resources and human capital has become the big challenges for research and
development (R&D) initiatives and investment on production plants.

Figure 5 Eastman Kodak’s “Fundamental Challenges”

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The current business challenges through digitalization are shown below Figure 6.In
continuing the continuous innovation through the technology adaptation, the corporate
management has to inculcate the favorable corporate culture and it needs to promote
the innovation and digititalization.The currently, the corporate culture has to fit the
organization operations.

Figure 6 the Kodak Value Chain Post-digital Age

Source: (Case study support, 2018)

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The top management of Kodak has to understand the consumer behavior and their
change needs and wants. The customers seek the photography with the expected
quality and products need to meet the customer expectations.Thus, the management
has faced the strategic issue and challenge of identifying, inticipating and delivering
the customer values to the target customers.

In addition to this, Kodak top management needs to arrange the organizational

resources in line with organizational objectives and priorties, with the changes of
strategic approach (Traditional photography to digital transformation) taken by the
Kodak management, The company faced the strategic issue of balancing and
managing top management support and commitment to achieve the sustainable
competitive advantages and change management objectives

3.0 Perspective 2: Strategy as Experience

In the strategic management, there is a view that future strategy of an organisation is
highly based on the experiences of its passed strategies. These experiences can be
learnt from managers and other employees. According to Johnson et al (2009), the
organizational culture is made with four layers: values, beliefs behaviours and
paradigms (taken for granted assumptions). In this view paradigm is the set of
assumptions which is made by organizational experience. The cultural web is another
way of representing the “taken for granted assumptions” or paradigms. According to
that the experiences that were generated in the organizational culture can be explained
through seven elements: stories, symbols, power structures, organizational structures,
control systems, rituals and routines and the paradigm Johnson et al (2009).

This approach emphasizes the way in which the future can be shaped by reflection on
the past. It is based on 'the view that future strategies of organizations are based on an
adaptation of past strategies influenced by the experience of managers and others in
the organization...' (Johnson and Schools, 2002, reproduced in Preedy et al, 2003:
142)
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Figure 7 Strategy as experience

Source:[ CITATION ONS13 \l 1033 ]

With the analysis of Eastman Kodak case study, it has faced much experience in the
past decades with the operational initiatives and these e experiences and events shape
the operational behavior of Eastman Kodak and it came with the new strategic
movement due to the operational consequences in the global business environment.

The business operations and value propositions of Eastman Kodak is highly link with
the technological environment and technology development has become the strategic
intervention in the industry. The past management failed to anticipate the needed
change or movement within the required time period. The industry competitors and
operators around the world market were constantly innovating and developing the
products and services by changing the production and operational technology. The
management at Kodak was happy being stuck and going with the old products and
ways of thinking due to poor strategic thinking and analysis. It is evident that core
management approach towards finding solutions to strategic problems being faced by
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Kodak in its infancy and introductory level was changed use to the industry
competition and rivalry. The time passed and the industry competition increased
dramatically and the management of Kodak ignored the need of changing the business
technology from silver-halide film technology to the digital technology. Specially,
The global market competition was the big challenge for Kodak and world leading
competitors like SONY, Canon, Fuji came up with the emerging an competitive
products and services under new technology innovation and development. In addition
to this. These leading manufacturers have focused on new products and service
development to meet the ever changing customer needs and wants. The Kodak
management and corporate culture did not promote the innovation and product
diffreciaiton on time and as required. The Kodak management has focused on new
products and services slowly and it was the big strategic misunderstanding of Kodak.
Other industry competitors of SONY, Canon, Fuji and other brand exploited this
situation by continuous new products and services.
With the analysis of operational performance of Kodak, It continuously lose the
operational performance indicators such as sales, profitability and other operational
indicators negatively.Industry leadership and market leadership ,in addition to this,
Kodak continuously reduced the R& D allocation and it weakens the industry
innovation and new products and service development.

Figure 8 Financial data of Kodak operational performance

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Source: (case study data, 2018)

Kodak was unable to change his strategic thinking timely manner and Kodak failed to
transform the business from Traditional photography to Digital transformation to meet
the ever changing customer intentions and defending the industry revalry.In addition
to, Kodak failed to understand the customer behavior and complexity.

Kodak did not realized the changes and complexity in macroeconomic forces
including global political and legal forces ,socio and cultural forces, economic
variations and eco environment convern.This situation weakens management thinking
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on the change management, this situation leads to business bankruptcy at the end as
the experience.

4.0 Perspective 3: Strategy as Ideas

“Idea generation and critical thinking has become the essential exercise of the
management to come with the value propositions to the market”[ CITATION Blu84 \l
1033 ].No organization can survive or grow without generating new ideas or
innovations. Therefore, the variety and diversity of the organization are essential to
generate genuinely new ideas. Top managers are the creators of new ideas of an
organization, but they have a responsibility to consider past experiences and views of
other members of the organizations when developing new ideas. According to
[ CITATION Gar99 \l 1033 ], New ideas and innovative thinking has become the root
for the new product and service development. Theoretically, the concepts and
principles of evolutionary theory (developing of innovative ideas) and complexity
theory (using of completed systems in the field of strategic management) can be used
in developing new ideas Johnson et al (2009).Strategy as variety looks at the
innovation through new ideas .this is shown below Figure 9.

Figure 9 Strategy and variety or idea

Source:[ CITATION ONS13 \l 1033 ]

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Kodak identified that porfotfolio management has become the critical concern of
the management and its unique efforts which made to change the technology and
structure of the company. In this sense, Kodak decided to expand and diversify its
businesses into chemicals health care. Kodak earlier supports to undermine by the
rise of Japanese camera and film companies such as Fuji Photo Film Company. As
a result of this huge competition in the market, Critical idea and strategic thinking
came to prominent to transform from analogue to digital technology, These new
challenges demanded to make rapid changes in technology with new ideas for its
survival in the market (Grant, 2012, p 569 – 570).According to [ CITATION
Sla02 \l 1033 ], Research and development has become the strategic investment to
generate new ideas and concepts.

Kodak used an incremental approach to managing the transition to digital imaging

and technology through the innovative technology concept. This transition helped
to Kodak to sustain the market place by reducing the operational inefficiencies
during the value delivery process. Kodak followed different strategies for the
consumer market, the professional and commercial marketsBecouse, Kodak needs
to look at the customer dynamism and changes of target segments.

Kodak has identified external sourcing of knowledge through hiring, alliances,

and acquisitions in order to achieve advantages through these strategic
movements. This strategic movement enables Kodak to strengthen the operational
efficacy and effectiveness in the so competitive global market place. The strategic
partnerships with these parties can ensure the industry sustainability.

Kodak decided to harvest the traditional photography business due to the

traditionalist of product and services and the customer demand more innovative,
quality and superior product based on the technology development. Other industry
operators introduced so many new products and service in continuous basis.Then,
Kodak came with the new strategic thinking which may leads to achieve the
sustainable advantages in the global market place. In this sense, the world’s first
megapixel electronic image sensor was introduced by Kodak in 1986. In 1991,
Kodak’s first digital camera with capacity of 1.3 megapixels was launched. CEO
of Kodak developed its digital strategy with the intention of transforming the
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company as a leader in the emerging period of digitals imaging.Thus, Idea

management has become the key strategic development for Kodak strategic way.

5.0 Conclusions and recommendations

It is concluded that Kodak has faced many challenges during the past decades and
these challenges weaken the operational performance and it leads to bankruptcy by
damaging to the shareholder wealth and capital.

It is concluded that strategies have become the key initiatives for achieving the
operational outcomes and it ensures the business sustainability by aching the
operational and strategic intentions of the business and stakeholders. It is evident that
strategy development can be a systematic process which is clearly defined by forces
and constraints of an organization. It is recommended for the management to establish
an effective and efficient mechanism which includes appropriate techniques with the
support of a clear strategic direction to evaluate the success or failure of strategy.
Then strategy development process needs to involve the rational and analytical in
nature and it requires evaluating and looking for the “Best Option” for aching the
operational outcomes for Kodak.

Secondly, it is concluded that strategic managers needs to consider the past and
leaning the lesions form the past to shape the behavior of organization. In this sense,
the management in Kodak needs to establish a favorable culture where the business
performance needs to be ensured. It is recommended for the management consider the
cultural elements in formalizing the organizational corporate culture by considering
stories, symbols, power structures, organizational structures, control systems, rituals
and routines and the paradigm .

It is concluded that innovative idea development and strategic thinking has become
the essential exercise for strategy developers the management to come with the value
innovation to the market and it is needed to develop the corporate culture which
promotes the new idea generation and strategic innovation in Kodak. It is concluded
that new ideas and innovative thinking has become the root for the new product and
service development which can attract and sustain the customers for Kodak. It is
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concluded that global Competition has become the challenge for Kodak and it is
recommended that Kodak needs to manage the industry competition and global
rivalry by formulating staregies.It is recommended that Kodak needs to anticipate and
forecast the consumer dynamism and intention dramatically. It is concluded that
Kodak needs to examine and align the organizational strategies for managing
macroeconomic forces and viriables.In addition to this; Kodak needs to invest in
R&D to promote the innovation and technology diffreciaiton to sustain the market. It
is recommended to implement the effective and efficient change management
program to meet the customer changes. It is concluded for the Kodak to be market
oriented culture to promote the organizational performance of Kodak. It is concluded
and recommended that Kodak needs to manage Strategic partnerships with the strong
brands, manufacturers and supply chains. In addition to this, Kodak has to promote
innovation (Blue Ocean view than Red Ocean view) to enhance the industry
benchmark. In addition to this, it is recommended to manage corporate reputation to
ensure the sustainability of Kodak effectively and efficiently.
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6.0 References

Blue, .. (1984). Marketing Management: A Strategy Planning Approach. McGraw-

Hill.
Buxey, G. (2005). Globalisation and manufacturing strategy in the TCF industry. .
International Journal of Operations & Production Management, 25 (2) , 100-113.
Gardner. (2012). Strategic Marketing. New York: John & Sons.
Johnson, G. a. (1999). Exploring Corporate Strategy. 5th ed. Prentice Hall.
Mintzberg, H. a. (1986). "Of Strategies, Deliberate and Emergent". Strategic
Management Journal (pre-1986), 6(3) , 257.
Mintzberg, H. (1990). Mintzberg, H. (1990). The Design School: Reconsidering the
Basic Premises of Strategic Management. Strategic Management Journal, Vol. 11 (3),
, 171-195.
Moghaddam. (2012). The Influence of Marketing Strategy Elements on Market Share
of Firms. International Journal of Fundermental Psychology and Social Sciences , 19.
Motsuno, K. m. (2000). The effects of strategy type on the market orientation
performance relationships . Journal of Marketing, Vol,64, no,4.Pp.1-16 , 1-16.
ONS, B. (2013). A STRATEGY FOR FUTURE . Retrieved June 12, 2015, from
Corperate website of UK government:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252383
/bis-13-1204-a-strategy-for-future-retail-industry-and-government-delivering-in-
partnership.pdf
Porter. (1980). Comparative strategy. New York: The Free Press.
Schnaars, S. P. (1995). Marketing strategy. New York: New York Free Press.
Slack, N. a. (2002). Operations Strategy. Harlow: Pearson Education.
Wind, Y. R. (1983). Marketing Strategy : New directions for theory and research.
Journal of Marketing , 12-25.
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Assignment 1 Coursework Assessment Criteria

Each report will be assessed according to the following criteria:

Criteria Comment

Evidence of in-class
preparatory work on the
different schools

Diagnosis of the current

strategic issues facing the
organization and appropriate
recommendations for future
strategy from each of the three
different perspectives

Grasp of the academic

literature. Demonstrates wide
reading and engagement with
the strategy text books and
academic journal articles

Sound conclusions and

recommendations
demonstrating depth of insight
and critical reflection on the
theory and own organization

Structure and present the work

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appropriately including use of

Harvard referencing

Overall comments
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