Eastman Kodak Company has been in existence for hundreds of years. The founder of this company was George Eastman who registered the Kodak trademark in 1892.
In 1999, Kodak ventured the market with a new product namely the photo inkjet printers. Kodak did not go it alone, the company signed to a joint venture agreement with Lexmark a manufacturing company. The venture came up with the picture maker that is personal and comes along with a Compact Flash and slots that do not require one to use a computer.Eastman Kodak Company made a re-entry to the market. The company made known its plan and intention to entirely bring a revolution to the consumers of the inkjet by starting up a brand new product line that would inclusive of all types of Inkjet printers. The company proudly claims that their printers are well able to save the consumer cost by more than 50% and at the same time, produce high quality prints due to the latest technology of Kodak Color. (Symonds, W., 2006).
The company has over the years and even today been the biggest supplier of photo films world wide. This is in all the three categories of motion picture professional and amateur markets. In addition the Eastman Company has diversified to the production of a variety of imaging industries for instance medical film imaging. The company has a large market size and sells its products world wide.The chief competitors of Kodak in the market include; FUJIFILM holdings corporation, Nashua corporation, IKONICS Corporation, Nature Vision inclusive and Xerox Corporation among others.Kodak Mission StatementThe company intends offer the widest range of modern technology and be the worlds best manufacturer of film technology and printing.Company productsThe Kodak Company has the following productsInk Cartridges and Inkjet Consumer PrintersFilmsDigital CamerasSoftware for Dental Management PracticeFilm camerasPrinting of PhotosSmart Digital Picture FramesInstant CamerasTelevision Production and Motion PictureImage SensorsPorters Five Forces Analysis of Eastman Kodak CompanyCompetitive Rivalry within the IndustryCompetition is often very stiff as many companies contend for sales.
A lot of finances are spent for marketing and promoting the products by competing firms through various channels in a bid to communicate to the target consumers who channel their money to purchasing the firm’s products. Over the years, there has been decline in the growth of the photo industry although new markets are up-and-coming with high growth levels. The demand in the photo industry does not have a seasonal trend and this escalates the rivalry even more, (Thompson, A. and Strickland, J 2001).
Threat of Substitute goodsAs a result of growth in modern technology and the market size, rivalry and marketing is fierce as firms attempt to increase their market share. The costs of products has become relatively low, substitutes have become readily available with slight features for differentiation. Packaging has also become attractive.Threat of New EntrantsThere is a barrier for new entrants to this industry as a result of the research and development undertaken in the market. However, printing of photographs is relatively cheap because it does not require technical expertise which is the norm in the digital world and quite expensive.
Consumers are attracted by brand loyalty and preference. This requires endorsements, promotions and a well established brand image which can prove to be expensive for new entrants to implement. New entrants are also barred and threatened by low capital reserves and limited right of entry to retail space. Presently, there has not been any a trade restriction, regulatory policies or tariffs to bar entry.
Bargaining Power of SuppliersSuppliers do not have any authority to affect the availability or the price of products. They are also not faced with shortage of inputs or processing capacity. The performance and quality in manufacturing and raw materials is not a factor since quality in this industry is dependent on how the products have been manufactured and not the materials used, (Symonds, W., 2006).
Bargaining Power of CustomersCustomers do have power because of low switching costs. Most buyers however buy as individuals rather than groups. Price Negotiations and discounts are as such not applicable.
They however have an array of choices in deciding the brand to purchase.SWOT Analysis for Eastman Kodak Company.StrengthsThough the market for this company has been declining, it has been able to survive because of several internal strengths. These include the availability of cash reserves that the company uses in times of crises, the good reputation and corporate image of the company, profitable patents of Kodak, and access to a variety of resources, a positive financial record as well as unique technology that keeps the company ahead of its competitors.WeaknessesThe infrastructure of the company has been ageing over the years while the company has been going through leadership instability. Unfortunately, this company that had formerly been able to stand the test of time has been having financial problems coupled with scandals on ethical issues and pending law suites.
The company has also been experiencing a flawed distribution of its products and its being faced by challenges of outmoded technology, (Hamm, S., Lee, L., & Ante, S., E.
2007).OpportunitiesAll is not over yet for Eastman Kodak Company. A number of opportunities have given the company a chance to rise to glory again. There has been an unfulfilled consumer need in the market; this means the company can still meet the unfulfilled consumer demand. Regulations have over the years been loosened and the company can now thrive and grow better. The shifts in demographics create a larger market where Kodak can effectively compete in, more over; modern technology that is now readily available can enhance the quality and distribution of the products of this company.
There are possibilities of mergers and joint ventures with more potential companies that will bring the company back to its profitability levels.ThreatsThe company is being faced by major threats and efforts are needed to convert them to strengths. There have been new consumer tastes and preferences for which the new competitors are trying to meet. The presence of substitute goods in the market due to the emergence of new producers has threatened the future of Kodak. A weak economy has reduced the consumer buying power and the financial position of the company. New product regulations have brought restrictions to Eastman Kodak Company.
The shift in the workforce has not been working well for Kodak. Employees form a very important source of human capital and if they are not very productive, it can result to massive losses, (Thompson, A. and Strickland, J 2001).ConclusionRecommendation from the external analysis of Eastman Kodak CompanyFrom the analysis, I have come up with the following regarding Kodak’s future. Under the leadership of the present company CEO, Kodak will be able to change its current position. The company has been loosing its market share due to the revolution of photography as a result of technological changes. The company should invest more resources, money and advertising to increase the quality of the products and improve the company image.
This can be achieved by the use of improved designs, technology, supplies and manufacturing process. Investing in the empowerment and motivation of the workforce will also change the current state of the company. Intensive promotions should be considered.
Product differentiation and the use of internet to do business and communicate with clients are of utmost importance in bringing this world leader to the top in the market.