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  • June 1, 2017
  • David Marks
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Eastman Kodak Case Study


Case StudyIn the changing world of technology, change is the only constant. The business which lacks the capacity to embrace change cannot succeed in the competitive world. Precedences show that change and innovation in technology challenge the success of the market leaders. Right strategy plays a critical role, and many leaders lost their market leadership without it (Jackson, 2012). Kodak, based on an innovative idea and product of that time, was a market leader in the film based photography products. In 1975, the business invested and launched the first digital camera. The business was the primary innovator of the digital technology with approximately $2.6 billion worth patients.  After touching the new heights of success, the company filed a bankruptcy suit in 2012 (Lucas &Goh, 2013). The assignment aims to analyze the Kodak’s digital imaging strategy critically, the reason behind its failure, and identifying alternative strategies. In the end, some logical and rational recommendations will be presented to regain lost success in the future.

Q1. What was Kodak’s digital imaging strategy during 1992-2012?

Kodak is one of the pioneers of the digital revolution, but was not bale to keep pace with the fast changing customer’s needs. The competitors were following Kodak, but the market dynamics were changing drastically. Kodak, then ventured a Niche strategy offering the product for a selected market. The business uses this strategy to limit the threat of substitute Kodak was the market leader in film-based photography which dominated the market for decades. The business known for its innovative and creative approach was unable to meet the changing needs of the market. The company employed cost leadership which has shown its limits in this case.  Kodak used razor-blade model where the products were offered at the lowest price. The business was unable to sustain as the competitors such as Fuji soon imitated the cost leadership. The sales volume determined the profit margin which was practiced by a majority of the opponent, resulting in reducing customers and commoditizing of their profit. The client started perceiving the product offered as the low quality which adversely affected the product and brand image (“Kodak Next”, 2016).


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