5 Force Kodak Case
Autor: klakla072 • April 14, 2015 • Case Study • 308 Words (2 Pages) • 5,753 Views
Use Porter‘s 5 Forces Analysis as a tool to develop your recommendations
Kodak Industry analysis – Porter’s five forces
Threat of Entry
An analysis of the industry using Porter’s five forces shows that threat of new entry is moderate. Significant investment in capital would be required to enter a new industry such as the digital imaging and photography industry. New entrants would lack experience and knowledge in key areas of digital imaging and photography such as technical and business knowledge .
Buyer power
The buying power of consumers is high especially for consumer electronics . Buyers are given a range of differentiated digital camera products from a number of companies . They expect better offerings and customization of goods and services .
Supplier power
Supplier power is low. A lot of the suppliers are located around the world both locally and internationally. Kodak has several supplier contracts spanning one to three years . However, there are single or limited sources of finished goods manufactured and purchased by the company’s third party suppliers which may pose a risk for the organization . Unique suppliers can reduce industry profitability .
Threat of substitution
The threat of substitutes is high. Companies are quick to match specifications, features and pricing . There are minimal switching costs between brands or substitutes as buyers can change to new updated models based on reasonable buyer perception .
Competitive rivalry
Competitive rivalry is high. Kodak’s faces intense competition from rivals such as start-ups and major competitors are Canon, Fuji Photo Film, Hewlett Packard (HP), Nikon and Sony . Similarly, Kodak is competing in similar segments with rivals – Hewlett-Packard (HP) to provide digital printing technology to consumers and commercial businesses . Kodak. states that competitive pricing and rising commodity prices has contributed to the negative results for 2010 across its prepress solutions, digital capture and devices, and entertainment imaging .
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