Describle and Evaluate Kodak’s Historic Strategy in Photographic Film.

1.Describle and evaluate Kodak’s historic strategy in photographic film.

1) 1880-1983:

The guiding principles: Mass production at low cost, international distribution, extensive advertising, and customer focus, and growth through continuous research. They used a razor-blade strategy: It sold cameras for a low cost, and film fueled Kodak’s growth and profits.

Evaluation: The strategy made Kodak controlled 90% of the film market and 85% of camera sales in the United States. Its technological strength and speed to market precluded the emergence of serious competitors.

2) 1983-1993:

They started diversification into other business, and some of the business was pharmaceutical industry. They anticipated their customers’ needs, created the products they wanted, and started exploration of digital imaging. Then they abandoned its policy of vertical integration. And they ignored the competition in the core imaging business.

Evaluation: Kodak’s share of the film market decreased by 5%. Most of the exploration and diversification went wrong way, and they accustomed their number one position in the market, so they give their competitors opportunity to grow up.

3) 1993-2003:

Moving more of its manufacturing to China, and created a network of retail outlets. Kodak’s basic strategy is making it easier to take pictures, and its digital strategy is to create a profitable bridge between the old and new worlds of photography: using digital technology to enhance photos consumers takes with existing analog cameras.

Evaluation: They were emphasizing the coexistence of film and digital imaging. They choose a Conservative strategy even they were aware that the era of photographic film would be ending.

2. As early as 1981, Kodak executives were aware that the era of photographic film