KODAK VS FUJI

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 innovation continued

with roll of film. Kodak was ethnocentric in their orientation. Distribution spread across other countries. More than 1lac Employees Increased competition from national and international

competitors

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 Fuji’s product range Heavily advertised in 1986 – Leased blimp and was placed in

front of Fuji headquarters in Tokyo

Major competitor FUJI – A Japanese company which entered 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

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

Accusations and Allegations

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