The UPHILL BATTLE AT EASTMAN

KODAK

Presented By
1)Rajiv Anand (20202147)
2)Rakim Goswami (20202148)
3)Ritesh Srivastava (20202149)
4)Rohit Raj (20202150)
5)Rupan Paul (20202151)
Company History
1889:The Eastman Company was formed.

1935: Introduced colour film.

1980: Fuji emerges as serious competitor.

1982: Kodak’s annual photo finishing sales plunged from $200

million to $60 million

1999: Kodak entered the digital radiography market.

Kodak Products
o Digital cameras

o Home printing

o Online services

o Retail kiosks and mini-labs

External Factor Analysis
o Huge capital & specialized

o Not relay on any company

o Rapid decline in demand for traditional photography equipment in

developed economies

o Rapid growth in demand for digital cameras in developed

economies ;steady decline in demand for film and photo
processing
External Factor Analysis
o Huge capital & specialized

o Not relay on any company

o Rapid decline in demand for traditional photography equipment in

developed economies
Internal Factor
Storage

Image Capture Processing Printing

Projection
Key Success Factors
o Technological capabilities

o Rapid design-to-market cycle times

o Involvement in multiple segments of the industry value chain—

camera production and sales, printing supplies, professional photo
processing
Kodak Organizational Structure

ADAPTABILITY MISSION CULTURE EXTERNAL

CULTURE

FOCUS

CLAN CULTURE BUREAUCRATIC

CULTURE INTERNAL

FLEXIBILITY STABILITY
Problems and reason for failure
• Core competency became core rigidities.

• Lack of market research.

• Wrong decision making led to huge monetary losses.

Case Study Questions
How has the environment affected Kodak ?

• Kodak delayed in realizing that Digital business is the way to go in

the future.

• The rivals concertinaed high quality product.

• Due to low quality, market share was declining

Describe Kodak’s Culture in detail ?
• The working style of the company was very traditional. The
company had strong loyalty from its employees.

• The company was technology driven company.

• The management style at Kodak was very complicated.

• The rivals took advantage of this time lag.

If you were hired as a consultant by Kodak’s board,
what recommendation would you make to improve
the company effectiveness ?
o Develop core competency in existing products & markets.

o Outsource Digital Business & maintain existing Easy Share System

o Focus traditional photography & films in current & emerging

markets & reap the maximum cash.
Conclusion
This is a great example of strategic failure.
We have learnt the following things from the case study
 External environment can be deceiving.

Changes happens.

Greatest strength can be weakness.

Innovation is not the perfect solution.

Thank You.