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Revival strategy of

Presented by- Alok Bhagat

Nishant Kr. Oraon

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KODAK

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Company Overview….1879: George Eastman invented the dry-plate process

and filed patent for a machine that coated dry photographic plates

1880: George Eastman established the Eastman Dry Plate Company, at Rochester N.Y.

1884: Introduced paper roll film

1889: Invented perforated celluloid film

1900: The Brownie box camera went on the market with a price of $1

1935: Introduced color film

1960: Brought the Instamatic camera to the market

1970: Major sales growth for Kodak. Concentrates on film and basic cameras

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Company Overview…. Cont…

1980: Fuji emerges as a serious competitor

1994: Kodak abandoned its non-imaging health-related businesses began to invest in digital imaging products for medical practice

1997: Kodak was a high-cost manufacturer with a growing portfolio of digital products which was losing hundreds of millions of dollars annually

1999: Kodak entered the digital radiography market

2001: Kodak is pushing aggressively into China, an important growth market

2003: Carp unveiled the plan to invest $3 billion in the next three years in digital products by cutting dividends by 72% to 50% per share

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Company Overview…. Cont…

2004: Kodak announced that it would stop selling traditional film cameras in Europe and North America, and cut up to 15,000 jobs

January 2005: The Kodak EasyShare-One Digital Camera, the world’s first Wi-Fi consumer digital camera capable of sending pictures by email, was unveiled

April 2006: Kodak introduced the Kodak easy share V610 Dual Lens Digital Camera, at that time the world’s most smallest optical zoom camera

December 2010: Standard & Poor's(American financial company) removed Kodak from its S&P 500 index(stock market index)

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Company Overview…. Cont…

January 19, 2012: Kodak filed for Bankruptcy Protection The company's stock was delisted from NYSE and moved to OTC exchange. Following the news it ended the day trading down 35% at $0.36 a share

February 9, 2012: Kodak announces it will exit the digital image capture business

October 17,2013: Kodak brings European headquarter and the entire EAMER technology centre under one roof in Eysins, Switzerland

March 12,2014: Kodak names Jeffrey J. Clark as its new Chief Executive Officer

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Brand Logo Evolution

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Kodak Product• Four distinct sub-product

– Digital cameras – Home printing– Online services– Retail kiosks and mini-labs

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SWOT AnalysisStrength• Existing Brand equity•Distribution Presence•Competitive capabilities• Market advantage•Acquire many strategically aligned companies

Weakness•Rapidly decreasing sales revenue•EBITDA are very low•Work force has been cut off• Corporate Culture

Opportunity• Digital Image• New alliances•On line photo sharing and storage

Threat•Competition in traditional• Demise of silver halide technology•Photo capable mobile phone•Price sensitive•Economic health & terrorism

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Reason For Failure

1. Rapid decline in demand for traditional photography equipment in developed economies

2. Rapid growth in demand for digital cameras in developed economies

3. Steady decline in demand for film and photo processing

4. Development of new imaging technology such as photo-enabled wireless telephones and high-megapixel digital cameras

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Cont…

5.Core competency became core rigidities

6.Lack of market research

7.Late mover of digital photography

8. Innovation and transformation failure

9.Unwillingness to change

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Kodak Revival Strategy

In 2003, CEO Daniel carp revealed 4 pillars Strategy:

1. Managing the traditional film business

2. Leading in distributed output

3. Growing the digital capture business; and

4. Expanding digital imaging services

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Kodak Strategy….Cont..

1. Managing the Traditional Film Business:

• Slow exit strategy from film business.• Looking forward to digital technology .

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Kodak Strategy….Cont..

2. Leading The Distributed Output

• Now a day digital photography much easer to view & share photo(i.e. integrated display on camera & sharing through electronic mail or kiosks etc.) and its affecting the photography industries.

• Then Kodak is able to bring fewer profit through digital technology (i.e. digital print) instead of traditional printing.

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Kodak Strategy….Cont..

3. Growing the digital capture business

• Profit much lower in digital photography than traditional photography.

• Success in this part of the business is dramatically opposed to the traditional photography business .

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Kodak Strategy….Cont..

4.Expanding digital imaging service

• Strategy take place by expanding product & services. For example Kiosks that could print image directly from mobile phone.

• In case of expanding service/online service Kodak acquiring companies like Ofodo to boost Kodak Easy Share Gallery.

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Current Strategy

Current CEO Antonio Perez adopt new strategy, such as

1. Outsourcing Manufacturing

2. Huge invest in digital technology

3. Spent hundreds of millions of dollars to build up a high-margin printer ink business to replace shriveling film sales

4. Aggressive patent litigation in order to generate revenue

5. Expand current brand licensing program

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Future prospects

• Discontinue unprofitable products• Change middle to high-level management• Launch new and innovative product • Move to another business segment such as

movie and entertainment • Focus on high potential products

– Kiosks and mini-lab– Online services such as photo printing and sharing

• Emphasize on niche market i.e. medical market and professional

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Conclusion

• Great example of strategic failure. • Lessons we can learn:

• External environment can be deceiving • Change happens• Greatest strength can be weakness • Its not all over till its over

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Thank you