kodak vs fuji case
TRANSCRIPT
Abhishek AnandKunal Ahuja
Nihit JainSanjay B K
Vaibhav KukrejaVaibhav Sathe
KODAK vs FUJIa battle for global market share
Section C – Group 8
Agenda
IntroductionAnalyzing CompetitionMarket DefenseMarket ExpansionExpanding total marketKodak TodayRecommendations
Introduction1997
EASTMAN KODAK COMPANYUSA Market Leader – 70%Worldwide share – 44%Japan share – 7-9%Pioneer of inexpensive cameras & easy to use films
FUJIJapan Market Leader – 70%Worldwide share – 33%USA share – 17%First to introduce one time use cameras
Clash of the Titans
SPONSORSHIP WARSFUJI film sponsor of 1984 Los Angeles OlympicsStrong foothold into US marketKodak sponsored ABC TV broadcast
LEGAL WARSKodak Complaint under US Trade Act, 301Antitrust allegation against FujiFuji rebutted blaming mismanagement of KodakWTO rejected Kodak complaints as baseless
Clash of the Titans
PRICE WARFuji cleared excess inventory at lower price sparked the Price WarFuji experienced strong market growthKodak did not intend to reduce prices initially thereby letting Fuji gain market shareAmerican consumers preferred Fuji as long as it was cheaper
1993
1994
1995
1996
1997
1998
0
20
40
60
80
KodakFuji
Kodak
Direct selling and contact with distributors and retailers (US)Effective division into SBUsGrowth and presence in markets outside US, reducing dependability of profits on the US marketOnline portal for receiving print orders Strategic location of business near talent pool e.g. Software business in Silicon Valley
Slow response to pricing strategy
Ineffective management of human resources
Late response to competition
Str
en
gth
sW
eakn
esses
Fuji
Competitive low cost advantageStrong promotional & branding strategy through sponsoringEfficient financing Close ties with Distributors in JapanHigh Operational efficiency, high revenues per employeeStrong focus on R&D , allocated 7% of SalesDifferentiated product line up (first mover in OTUC )Web support for printing
Low payouts to employee
Neglecting profitability
More focus on long term growth
Str
en
gth
sW
eakn
esses
Market Scenario
Competitive low costMarket growth potential in developing countries of Indonesia , China, Brazil & IndiaConcentric diversification into Digital imaging spaceTechnological advancement and increasing application in different fields leading wider opportunity for innovationIncreasing consumption of films by marketing the idea of photography as fun
US photo industry unstable and unpredictableSubtle change in US consumer attitude with acceptance to foreign products, huge trade deficits without any protectionist legislationDecreasing margin for manufacturersDigital Imaging is an increasing trend Strong US dollar is eroding kodak's export advantage
Op
port
un
itie
sTh
reats
Market Defence
Market BroadeningFocus on R&D – embracing digital technologyConcentrating on getting non users
Market DiversificationConcentrating on emerging economies – Brazil Russia India China (BRIC)Developing economies still used Film and not digital cameras
Kodak Funtime Strategy
Niche marketing – Price conscious customer segmentCheaper than Fujicolor Super G., but higher profit margin.No advertising expenditureLimited presence and quantitiesValue packs, multiple speedsSome Cannibalization its own higher productsBut Retaining customers
Market Expansion - JapanRetreat in 2002 due to low demandRe-entry in 2004
Acquisition of ChinonTackling Issues in Distribution channelsLaunch of new productsPrimarily marketing Print SystemsSecondarily marketing Cameras, films
Kodak DX7590
Expanding Total Market
Investing in infrastructure and world class consumer centric productsPromoting Photography as a fun activityKodak MomentsKodak Moment of the monthPhoto Cards, Gifts and BooksBringing more people to take
photographs
Kodak TodayRegaining MomentumExpansion in Digital productsContinued decline in traditional productsDigital Camera competition from
SonyNikonCannon
High End SmartphonesAppleHTC
Online Photo sharing serviceGoogle PicasaFlickr
Touchscreen camerasVideo camerasDigital picture framesInk-jet printers
Recommendations
Products/Services Provide cheaper online print servicesTie-up with companies like zoomin.comSmart Phones apps to order print onlineKiosks at Mall for instant photo printing
PlaceMake available online services in emerging markets
PromotionPromote OTUC in tourist spots, malls