KODAK CASE

A Case Study on Kodak Downfall

Introduction
 Kodak is one of the leading brand in 90’s in the field of film, rolls, and camera. Guided by
its vision to be the world leader of imaging, the company aimed to provide customers and
consumers with many ways to capture, and communicate images and pictures and
memories, information, and entertainment to people. The company was ahead in producing
the first cameras and was even the one who invented the first digital camera. The company
made significant contributions in the field however, due to the company’s hanging back of
embracing changes in preferences due to technology advancements along with the wrong
management decisions pertaining to market changes, the company’s strategies went wrong.
This failure restricted them to compete with their rival and led the company to its downfall.

 This study aims to investigate the factors that constituted to the company’s downfall and
the possible alternatives that could have saved the company.
SWOT Analysis

 Strengths

 Kodak has a renowned and strong brand name reputation. The company has broad market
coverage and was known globally.
 The company has manufacturing competence and potential for technology innovation. It
was the first to invent the digital camera and was the first to introduce new convenient type
cameras.
 The company has many product lines. It was the leading brand in the field of films, rolls,
and cameras.
Weaknesses
 Growth without proper direction. The company was able to lead the market yet they
hesitated to follow the new trends.
 Failure to check and embrace the changing market trend. They focused their research on
their traditional product lines
 Cost and technological support. Due to lack of technological competency and proper
financial support, Kodak were unable to keep up with competition.
Opportunities

 Product line expansion. Kodak has proved competence in manufacturing products that will
complement the changing market trends.
 Diversification of products. Technology advancements will enable the company to create
innovative products.
 Social Media hype. With the increasing usage of social media, the demands in photography
also increase.
Threats

 Tight Competition. The company’s market share declined due to rivalry. The company is in
an industry where competition is very high.
 Digitalization. People shifted from printing to online activities.
Statement of the Problem

 Kodak’s inability to compete with its rivals was one of the defining factors that caused its
downfall.
 Poor decision making of the management
Causes and Indicators of the Problem

 Lack of technological competency and proper financial support, and little appreciation on
the Kodak Research Labs’ effort on digital technology.
 Poor strategic and marketing planning that led to wrong management decisions.
Impact of the Problems are not Solved

 Short Term - continuous downshift of its sales and revenue, and inability to recover from
its losses.
 Long Term – Insignificant brand name and loss of market segments.
Identify Decision Criteria

 Ease of Implementation. An efficient solution contributes to its effective implementation.

 Minimal Cost. Solutions that are high in costs may contribute to the company’s losses rather than save and
bring it back to its former glory.

 Increase in market share. Among the objectives of this study finding alternatives that could have saved the
company.

 Low Risk Level. The company have already suffered great losses due to its poor planning hence this study
aims to recommend possible solutions with minimal risks.

 Employees’ morale. Employees are the bloodline of a business. High-spirited employees often times result to
productivity.
Part 4: Alternative Strategic Choices
Problem 1: Inability to compete with rivals

Alternatives Advantages Disadvantages

1. Intensify company’s Creation and innovation of Entails high cost

research and development
focusing on digitalization
2. Develop new product lines
products following the
consistent change in costumer
preference and digitalization
Increase in sales and may Possibility of low marketability
capture additional market share plus entails additional cost

3. Geographic Expansion May capture new market. Positive result is not guaranteed
and entails additional cost
Problem 2: Poor decision making
Alternatives
1. Regular conduct of
Strategic Planning
2. Restructuring of key
employees in the management
level
3. Benchmarking
Advantages
Periodic review of the
effectiveness and monitoring of
the company’s marketing plan
and growth direction
Realignment of employee’s
capacity and talents
Enable to practices of similar
companies while checking their
own practices
Disadvantages
Entails cost and time
constraints
May result to changes of
employees’ productivity
Entails additional cost while
result is not guaranteed
Decision Table
Problem 1 Decision Table

Decision Criteria
Alternatives Total
1 2 3 4 5

1 2 3 3 2 3 2.6

2 2 3 2 1 3 2.2

3 1 3 2 1 2 1.8
Problem 2 Decision Table

Decision Criteria

Alternatives Total

1 2 3 4 5

1 3 2 2 3 3 2.6

2 1 1 1 2 1 1

3 2 3 2 3 2 2.4
The Best Solution and Implementation Plan

Best Alternatives:

 Intensify company’s research and development focusing on digitalization

 Regular conduct of Strategic Planning
Implementation Procedure

1. Intensify company’s research and development focusing on digitalization

 Conduct of Needs Assessment of the R&D Department

 Presentation and approval of the product idea or concept
 Budget Allocation
 Procurement of necessary resources (manpower, materials, etc.) and actual development of
new products or innovation of existing ones focusing on digitalization.
 Quality inspection and assurance, and pilot testing of the product
2. Regular conduct of Strategic Planning

 Review and assess the previous strategies, production, operation, and marketing plans, and
recommend changes if necessary
 Research and refer to other companies’ best practices
 Involve the key personnel in the discussion and collect valuable insights before decision
making
Performance Measure

 Increasing number of digital products and increasing market share

 Consumer awareness on the products and the brand itself
 Upward shift of sales and increase revenue
Control Measures

 Periodic conduct of product review and market acceptance, and regular monitoring of
market trend to readily adjust with changes and keep up with competition
 Continuous support and monitoring of the company’s R&D
 Frequent conduct of employee’s learning and development to hone their knowledge,
talents, and skill and thereby contributing to company’s success
Conclusion

The trend of technology innovation is undeniably and rapidly growing where almost
everything becomes digital. This trend can either make or break a business. Your market
position today may not be the same tomorrow if you refuse to adapt the changes. Continuous
learning for development, adaptability to changes, and unending support are among the most
important factors in order to retain and grow your business. There is no such thing as
unsinkable ship and the only constant is change. Strategizing and effective marketing will
make a business keep up with competition.