Case study: Kodak at a crossroads - The transition from film-based to digital photography

Research Paper (undergraduate) from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: 1.0, University of applied sciences, Munich, language: English, abstract: Kodak is an American giant and a global player in the photography equipment industry. The company had a leading position in the world market for traditional films, papers and photofinishing business. However, in the beginning of the 21st century Kodak stood before a big challenge. While the sales for traditional photography equipments were declined continuously, the market for new digital photography grew rapidly. Kodak has decided to transfer from a traditional film to a digital-oriented growth company and had to focus all its forces to gain market shares and profits in this new market.

The object of this study is to analyze the strategy and performance of Kodak in the photography equipment business. Thereby industry¿s dominant economic features and competitive environment, e.g. market data, competition and competitive forces, driving forces for market change and key success factors, are studied. Moreover, the SWOT analysis is applied to identify the resource strengths and weaknesses of Kodak as well as new market opportunities and threats for the company. On this basis, recommendations to Kodak to get success and win the leading position in the digital photography industry are provided.

It could be shown in this study that in spite of many efforts Kodak did not achieve high performances in the new digital photography market. This market was characterized by high competition, rapid growth, but low profit margins. In order to become the leader in the digital photography industry Kodak should intensify strategic alliances and partnerships, drive acquisition of rival firms, expand rapidly into new demographical markets, push the product innovation as well as broad the product portfolio, and build a strong brand in the new digital photography segment.