fuji kodak rivalry

8/8/2019 Fuji Kodak Rivalry

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Kodak in Japan

K odak entered the Japanese market in 1905.Joint venture with Nagase & Co. as K odak-Nagase.

Access to 60,000 camera stores.K odak introduced W aterproof disposable camerawhich became highly popular.K odak failed to get good retail acceptance withmarket share of only 7-9%.K odak filed a petition under section 301.


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S trategies Adopted by Fuji to Enter U S Market

F ounded in 1934 (Tokyo, Japan)F ocused on providing quality and innovative productsat cheap price

E ntered in US market in 1964 as supplier of privatelabel film.E stablished its first subsidiary in 1965In 1967 , F uji released 8mm home movie system

beforeK

odak After that K odak introduced Super 8 movie camerawhich was incompatible with F uji


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F ujis Puppy Dog stance(15 % market share other than K odak i.e. K onica, 3M)

1970, F uji introduced a faster film with bright colors

(helpful for professionals)1972,began to market its film under its own name &started giving free rolls to buyers of Japanesecameras

1976, F uji introduced 400 speed color film that wasfaster than films made by K odak due to which manyphoto finishers switched to F uji


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K odak products were 20% more e x pensive than F uji

1977, reduced prices of its print paper

1978, F uji adopted intensive distribution strategy(drugstores , supermarkets)

1983, F uji bought new high-resolution speed in 2 speedsand K odak responded with 4 speeds


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F uji adopt the strategy to follow K odak (ReactiveF ollower)

1984, F uji was official film for Summer Olympics after

which K odak thought that F uji could be potential threat

1986,was the first to introduce one time usecameras(leader)

E stablished a Production plant in US (1991, F uji had15 plants in 12 countries i.e. Globalization throughLocalization )


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Compatibility with K odak Cameras & F ilms (F uji spent 7% of its revenues on R & D annually to maintain competitiveadvantage)

1988, K odak sponsor Olympics

1990, F uji gained market share in film by spending time with

distributors(bright color & fast speed)

Aggressive Marketing??????????


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Reasons for Fujis success in the U S

K odak had not take F uji seriously

Built a reputation for quality and innovative products

Gained market share by offering products at priceslower than that of K odaks

Consumers viewed the company as Customer

orientedRegular introduction of new products

K odaks defensive strategy v/s F ujis offensive strategy


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U.S . Market

0

10

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30

40

50

60

70

80

1993 1994 1995 1996 1997 1998

K odakF uji

Unitsales inmillions

S ource: Information Resources, Inc. Ending 6/21/98


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KODAK IN JAPAN


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In 1980- after US, Japan emerged as the secondlargest market in photography products..

In 1905-To grab this opportunity and strengtheninghis Competitive advantage K odak entered

Japanese Market.


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S trategies adopted by Kodak

1. D ISTR IBUT ION N E TW OR K

2. JO INT V E NTUR E & STRAT E G IC ALL I ANC E .

3. INNOVAT ION O F NEW PRODUCT

4. ADV E RT IS E ME NT


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3. Innovation of New product:

- New products such as waterproof disposable cameras,- print film name E ktar.- Single use camera i.e, falcon.

All the above product had given high brand recognition

and brand recall among Japanese consumers.

4.Advertisemet :- H uge Yellow sign symbolizing K odaks name.

- Advertise heavily in the media to increase its popularity.- Leased only available blimp in Japan, decorated with

bright yellow color, trademark and name.


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Reasons for Kodak poor performancein Japan.

1.Poor distribution Channel:2.Generous Commission: More commission paid by

F uji to distributor 3. E ntry to new barriers: Not allowing to sell other

product in store e x cept F UJ I product.4.Negligance: Realizing late to enter in Japan

market after F uji enters in US market.


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DIFF ERENC E BETWEE N DIST RIBU TIONNETW ORK

FOR PHO TOGRAPHIC FILM IN U. S . &JAPAN


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MAJOR DIFF ERENC ES

systems in place to distribute film, paper and supplies toend-users.

In the United States, most of photographicmanufacturers sell directly to retailers and photofinishers.

In Japan, distributors mediate between the two parties.


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FUJIFILM

AS ANUMA MIS UZU KA S HIMURA OHMIYA

Tokuyakuten ( Independent traders or merchants)

S econdary Wholesaler

S MALL R ETAILERS (KIOS KS)

LARG E RETAILERS

CAMERA ST OR ES

FUJI DI ST RIBU TION N ETW ORK IN JAPAN


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COLOR FILM DI ST RIBU TION ST RUC TUR E IN JAPAN


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FUJI DOMINANC E IN JAPANF uji substantial control over the vertical channel

Characteristically smaller retail outlets & are large in number sold in appro x imately 400,000 Japanese retailestablishments

Limited shelf , inventory & storage spaceSmall store likely to specialize in single best knownbrandThey also buy from secondary wholesalers

Gained an access to small retailers in rural areaK odak's ability to be best choice for small U.S. retailers,when only one brand can be stocked, and F uji's similar

ability in Japan


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Store Type Location Film Brands Stocked

Large, well-known single- unit Cambridge, MA Kodak, Fuji, Polaroid, iifordphoto equipment and suppliesspecialist

Photo equipment specialist, Cambridge, MA Kodak, Fuji, Polaroid,unit of chain, in largeshopping mall

Small photo supplies and Charlestown, MA Kodak, Polaroidprocessing outlet, single-unit

Discount house; largest unit Cambridge, MA Kodak, Polaroid, Konica, Fujioflocal chain

Large retail phannacy, unit Charlestown, MA Kodak, Japanese Private Label, Polaroidofleading chain

Large retail phannacy. prime Brookline, MA Kodak, Polaroid, Konicalocation, single-unit

Small retail phannacy, off Brookline, MA Kodaklocation, single-unit

Large food supennarket, Charlestown, MA Kodak, Polaroid, Fujipart of local chain

Convenience store, part of regionalCharlestown, MA Charlestown, MA Kodak, Polaroid, Fujichain

News shop at resort Hot Springs, VA Kodak

News shop, Logan Airport Boston, MA Kodak


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fuji kodak rivalry

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