BEHAVIOURAL STRATEGY

Fujifilm: A Second Foundation

Submitted by: Avantika Tijare (MBA0016/57)

1. Evaluate Fujifilm's transition from analog photography to digital imaging.

Establishing a firm's identity is critical, especially for organisations in transition. Fujifilm’s

transition not only explains its existence, but it also outlines the steps that it would follow to
attain its objectives & vision. Fuji's redefining of the company's identity transformed the way
the corporation observes and responds to the industry's environmental shifts, where the
systematic approach to information was shifting from 'analogue' to 'digital.'
Mr. Komori focused on Fuji employees' fundamental skills and encouraged them to
innovate. By forming an M&A division and acquiring a few players ranging from ink-jet dyes
to diagnostic radiopharmaceuticals, he gained more experience. Identifying high-growth
businesses, such as flat panel display material, helped the corporation realise that staying
relevant in the industry requires identifying these types of businesses.

2. How would you assess Komori's attempt to transform Fuji? What has he already
accomplished and what more should he do to galvanize the organization?

Fujifilm was lacking was the clearheaded vision to understand what was coming and the
resolute action to deal with it. Mr. Komori not only saw the train wreck coming, but he also
lobbied hard for Fujifilm management to pay attention to it, and when given the reins, he
was decisive and firm in doing what he needed to do, which was to rebuild the company.
He plainly comprehended that in the short term, he expected to do all that could be within
his reach to keep the business drifting and in long haul seeing the business scene it was clear
for them to continue to enhance and be pertinent on the lookout.
He invested his efforts in aptly utilizing the talents of his team to innovate & improve the
operations. Though it seemed he was moving toward the issue forcefully, yet he did
everything in organized way.
The cognitive bias comes into play when Komori took the decision of a lay off and explained
that it was to save the company. The layoff could have been used an excuse to avoid difficult
discussions.
Going forward, Komori should frame the situation properly and go ahead with finding a
solution for the same by:
a. Recognizing the main issue behind the problem
b. Deciding the objective
c. Planning carefully for long term as well
d. Consensus building
e. Treating employees with respect as well as saving the company
After a successful transformation, Komori needs to decide on the market to which the
company would like to serve & target. Then he needs to focus on execution and
adaptability.

3. Fujifilm has diversified into several businesses in search of a 'second foundation'.

What should the company's criteria in moving to a 'second foundation'?

After shining in the market through its expertise in various fields, Fujifilm should decide on
the field that it wants to focus on. Going forward, it may reach saturation and hence needs
to identify a path that they want to follow and narrow down their choices.
Thus, expanding in line with the core activities of the company will be beneficial for them in
the long run. The employees and the customers need to be able to recognize themselves
with the company and its initiatives & products.
Instead of dilution, the company should focus on building expertise in one or a couple of
selected verticals.

4. What is Fujifilm's current position?

In the case, Fujifilm is currently showing immense growth in 10 business units YoY. Though
Komori was satisfied with the growth and the company’s situation, due to the variability in
businesses, planning for the future was going to be a great challenge. A foundation had tpo
be set to define the culture of the company and its business that the employees could relate
to. The company has been able to stand the storm till now, but they need to plan carefully
and strongly for the future. Rather than celebrating the victory, fighting the challenges
ahead should be Komori’s strategy.