Kodak

Jennifer KoJenny Quach

David TamayoShinichiro Yamamoto

Takeaway

• Better organization and communication among divisions

• Invest in corporate culture and consistency• Commitment to R&D projects and forward

thinking

Kodak’s Business Model

• “You press the button, we do the rest”• Razor blade strategy• Leader in photo-finishing process• Incremental improvements• Vertically integrated

Digital:The Disruptive Technology

• Business model• Customer behavior• Value chain• Marketing strategy

Kodak’s Attempt at Digital

• “Film-based digital imaging”• Developed the first digital camera in 1975• Developed the Photo CD in 1991

Strategy Mistakes• Rejecting opportunities that at first glance

appear too small- Kodak was attached to the same profitability of

the traditional photography business model (1983-1989)

- Spreading its digital investments too broadly

Process Mistakes

• Strangling innovation with the same tight planning, budgeting, and reviews applied to existing business- Razor-blade business model, insisting film- based digital imaging (1990-1993)- Complacency in its Rochester, New York base blinded the company from technological leaps elsewhere

Structure Mistakes

• Isolating fledgling and established enterprises in separate silos- Digital imaging operations with silver-halide

photographic division separated across departments

- Inconsistency and confusion of communication between top and middle managers

Skills Mistakes

• Allowing innovators to rotate out of teams– Changing CEO frequently, thus changing its

strategy about digital transformation

Overall, Kodak avoided risky or innovative procedures and policies, and suffered from a mentality of perfect products, rather than the high-tech mindset of make it, launch it, fix it

Kodak vs Fuji Film

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Kodak Fuji Film

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Source: http://www.electronicjournal.co.jp/article/PDF/20120601.pdf

Transition of Sales

Kodak Fuji FilmComparison of Diversification

Reasons

• Inconsistency of Management• Top Management• Strategy for transformation of the firm• Communication within the organization

• Corporate culture• Complacency• Sticking with current business model• Too much focus on profitability, ROI, and

shareholders

Kodak After Case

Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/

Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/

Recommendations

• Printing in the medical field

Thank You