final kodak vs fuji

Upload: krunalpunjani07

Post on 10-Apr-2018

228 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 Final Kodak vs Fuji

    1/30

    Vs

  • 8/8/2019 Final Kodak vs Fuji

    2/30

    Group MembersName Roll No.

    Krunal K Punjani 86

    Sagar Raskar 88

    Sourav Roy 90

    Sandeep Kumar 92

    Vishal Shete 94

    Avanti Shirsat 96

  • 8/8/2019 Final Kodak vs Fuji

    3/30

    Overview of the case Kodak was established by George Eastman and

    enjoyed monopoly in the US markets.

    A household brand name synonymous for films.

    Development of dry plate process and innovationcontinued with roll of film.

    Kodak was ethnocentric in their orientation.

    Distribution spread across other countries.

    More than 1lac Employees

    Increased competition from national and internationalcompetitors

  • 8/8/2019 Final Kodak vs Fuji

    4/30

    Joint venture with Nagase & Co

    Introduced 60,000 stores which helped to display their

    products

    Concept of Minilabs in 1980

    Development of Panoramic disposable camera, which

    was not present in Fujis product range

    Heavily advertised in 1986 Leased blimp and wasplaced in front of Fuji headquarters in Tokyo

  • 8/8/2019 Final Kodak vs Fuji

    5/30

    Major competitor FUJI A Japanese company whichentered US market in 1964.

    Recognized as a company who was:-

    Consumer oriented Manufactured Innovative products

    Price conscious

    Distribution to drugstores, supermarkets, discount chains

    etc Provided compatibility to Kodak cameras and Kodak films

    Imitative improvements

    Sponsorship agreement to gain International Recognition

  • 8/8/2019 Final Kodak vs Fuji

    6/30

    Strategy of producing locally in US and competing

    globally.

    Fuji had 4 distributors whereas Kodak had 1 in Japan.

    Established 15 manufacturing plants outside Japan.

    Leader in ONE time use cameras.

    Offers and discounts to sell excess inventory.

    Focused on Profit

  • 8/8/2019 Final Kodak vs Fuji

    7/30

    Reasons : Kodak accused Fuji Unfair trade practice by Fuji

    Distribution of any other brand not permitted

    Japanese Government Backing Fuji

    Bribing Retailers and wholesalers

    Subsidizing sales in US and Europe

  • 8/8/2019 Final Kodak vs Fuji

    8/30

    SLEPT Analysis

  • 8/8/2019 Final Kodak vs Fuji

    9/30

    Political Environment

  • 8/8/2019 Final Kodak vs Fuji

    10/30

    USA JAPAN

    Two Party Parliamentary with Monarchy

    Managerial

    Capitalism

    Democratic Capitalism

    HOMEcountry political environment

    USA encourage their organization s to establish activities abroad, especially in core-

    competency fields.

    Japan Electronics & auto companies.

    Global Political environment

    Both countries are members of members of various international organizations and

    share a common view on various issues.

    Hostcountry political environment

  • 8/8/2019 Final Kodak vs Fuji

    11/30

    There are two major issues in the political environment of the United Statesthat directly

    affect the market for image technology products of Kodaks business.

    Patentinfringement

    Privacy

    Japan has traditional and unique business practices in many industries, which are criticized

    as being restrictive of foreign investors entering the Japanese market, even though they

    are not designed as an impediment to foreign investors.

    Therefore, since the 1980s the Japanese government has committed itself to taking more

    rigorous actions against practices violating the Antimonopoly Law and promoting greater

    transparency and deregulation.

  • 8/8/2019 Final Kodak vs Fuji

    12/30

    Economic environment(

    U.S

    .A)Home country economy:

    MNCs ofU.S.A venture abroad. Liberal economic & trade policies.

    Hostcountry economy:

    Size of the market, GDP, industrialization, banking, PPP, Income levels,

    Global-level economy:

    NAFTA

  • 8/8/2019 Final Kodak vs Fuji

    13/30

    Econom

    icE

    nvironmen

    t

    Kodaks products are used both as consumer and industrial goods, andthis distinction is important to keep in mind when looking that the impact of

    various external factors on Kodaks sales.

    The distinctions become most evident in a discussion ofinflation and interest

    rates.

    TheU.S.-Japan bilateral economic relationship--based on enormous flows of trade,investment, and finance--is strong, mature, and increasingly interdependent

  • 8/8/2019 Final Kodak vs Fuji

    14/30

    Social & Cultural Environment

  • 8/8/2019 Final Kodak vs Fuji

    15/30

    U.S. Japan

    Company Team in Sport Family in Village

    Business goal To Win To Survive

    Employees Players in team Children in Family

    Human Relation Functional Emotional

    Competition Cut throat cooperative

    Work motivation Individual

    Income

    Group Income

    Promotion According To

    Abilities

    Length of Service

    Pay Service & Result Award of patience and sacrifice

  • 8/8/2019 Final Kodak vs Fuji

    16/30

    Technological Environment

    U.S.A - Innovator

    JAPAN- Innovator as well as imitator

    The technological environment within which Kodak operates is subject to continuous

    innovation at an increasing pace. Part of this increasing amount of technological

    innovation has been fuelled by a desire for compatibility and do-it-all devices.

  • 8/8/2019 Final Kodak vs Fuji

    17/30

    Legal EnvironmentJapan's judicial system, drawn from customary law, civil law, and Anglo-American common

    law, consists of several levels of courts, with the Supreme Court as the final judicial

    authority.

    Japanese constitution includes a bill of rights similar to the U.S. Bill of Rights, and the

    Supreme Court has the right of judicial review. Japanese courts do not use a jury system,

    and there are no administrative courts or claims courts

    Section 301 of the US trade act is a law that requires theUS trade representatives to

    determine whether trade practices by a foreign country are unreasonable and discriminate

    against exporters.

  • 8/8/2019 Final Kodak vs Fuji

    18/30

    Porters Five Forces Model

  • 8/8/2019 Final Kodak vs Fuji

    19/30

    PortersFive Forces

  • 8/8/2019 Final Kodak vs Fuji

    20/30

    Founded in 1934 , Fuji photo Film, its headquarters in Japan.

    Fuji was market leader in Japan, worlds second largest market

    for photography products.

    Entered in the US Market in 1964 as supplier of private label

    film.

    Focused on providing quality and innovative products to

    customers.

    About Fuji

  • 8/8/2019 Final Kodak vs Fuji

    21/30

    Fuji Strategy Reactive Follower.

    Compatibility with Kodak cameras & films.

    Aggressive Marketing.

    Distribution Strategy.

    Innovative & Quality Product with Price lower than that

    of Kodak.

  • 8/8/2019 Final Kodak vs Fuji

    22/30

    Reasons for Success

    Niche Marketing.

    R & D

    Cost Efficiency.

    Response from Kodak.

    Trends in US.

  • 8/8/2019 Final Kodak vs Fuji

    23/30

    Kodaks Strategies in Japan

    Strengthened control over distribution &

    marketing efforts

    Joint venture with Nagase

    Strategic alliances with Bandai

    Its came out with the concept of Minilabs Introduced Panoramic disposable camera

  • 8/8/2019 Final Kodak vs Fuji

    24/30

    Single-use cameras called Falcon

    Set up R & D centre

    Brought Kusuda Business Machines which

    marketing kodak micrograph & business

    imaging systems

    Advertise heavily in the media

    Introduced waterproof disposable cameras

  • 8/8/2019 Final Kodak vs Fuji

    25/30

    Reason For Poor Performance In Japan

    Significant difference between the

    distribution networks

    Kodak had only one distributors Nagase

    Poor marketing & bad management

    Kodak never took the Japanese market

    seriously

    Lack of effort

  • 8/8/2019 Final Kodak vs Fuji

    26/30

    Difference In Distribution In US manufacturers sold directly to retailers & photofinishers

    In Japan distributors acted as intermediaries

    Fuji had strong ties 4 main distributors Asanuma, Misuzu,Kashimura and Ohmiya

    Whereas Kodak had only 1 distributor Nagase

    Kodak claimed that the tie up of Fuji with major distributorsprevented other brands entry

  • 8/8/2019 Final Kodak vs Fuji

    27/30

    Distribution Strategy

  • 8/8/2019 Final Kodak vs Fuji

    28/30

    Fujifilm

    Asanuma

    Secondary Wholesalers

    Tertiary

    Wholesalers

    Camera

    Stores

    Camera

    Stores

    Small

    Retailers

    Misuzu Kashimura

    Large

    Reatilers

    Ohmiya

    Large

    Retailers

  • 8/8/2019 Final Kodak vs Fuji

    29/30

    Fuji products were sold through 216000 retail outlets

    15% of them gave 75% of the total sales.

    Fuji owned a controlling interest in 3 of the 5 major

    wholesalers

    In response Kodak bought Ksuda Business Machines a

    local distributor there

  • 8/8/2019 Final Kodak vs Fuji

    30/30

    Thank You