Kodak in Paradigm of Competitors Analysis and Interfirm Rivalry

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Kodak in Paradigm of Competitors

Analysis and Interfirm Rivalry


History of Kodak

• Came with slogan "you press the button, we


do the rest," in 1888
• 1902 - The KODAK Developing Machine simplified
the processing of roll film
• 1903 - KODAK Non-Curling Film
• 1907 - Kodak's worldwide employment passed
the 5,000 mark.
• 1908 - world's first commercially practical safety
film using cellulose acetate base instead of the
highly flammable cellulose nitrate base.
• 1913 - The introduction of EASTMAN Portrait
Film
• 1914 - A 16-story office building, the company's
present worldwide headquarters
• 1917 - Kodak developed aerial cameras and trained aerial
photographers
• 1920 - Tennessee Eastman Company was organized to
manufacture wood alcohol for film base.
• 1921 - The Eastman Savings and Loan Association was
established to help employees save and to finance home
purchases.
• 1927 - Kodak employment throughout the world passed the
20,000 mark.
• 1928 - Motion pictures in color became a reality for amateur
cinematographers with the introduction of 16 mm
KODACOLOR Film.
• 1929 - The company introduced its first motion picture film
designed
Products
• Professional Films
• Papers and Materials
• Digital Photo Printers
• Image Enhancement
• Chemicals
• Software
George Eastman, founder of Eastman Kodak, relied on some
basic principles for his business: (Taken from Kodak History.)

• Mass production at low-cost                                           

• International distribution                                                   

• Extensive advertising                                                       

• Focus on the customer                                                    

• Foster growth and development through continuing research

• Treat employees in a fair, self-respecting way

• Reinvest profits to build and extend the business


Competitors Analysis and Interfirm Rivalry

• Drivers of Competitive Behavior


– Awareness
Do the company managers understand
the key characteristics of competitors?

– Motivation
Does the company have appropriate
incentives to attack or respond?

– Capability
Does the company have the necessary
resources to attack or respond?
Answer is Yes
• Kodak has own Brand
• They spent 5.19% of sales on R & D for
Innovation purpose
• Globalization
• Standardized products
• Capable employees (for taking the good and
on time decisions)
Competitors Analysis and Interfirm Rivalry

• Competitor Analysis
– Market Commonality

• Do firms compete with each other in multiple markets?


• Multipoint competition tends to reduce competitive
interactions, but increases the likelihood of response where
interaction occurs.
Kodak Competitors
• Canon
• Sony
• HP
• Agfa
• Fujifilm
• Nikon
Market Share & use of technology
• Canon 18.7% (7 Digital SLRs 24 Point & Shoot)
• Sony 15.8% (3 Digital SLRs 11 Point & Shoot)
• Kodak 10% (No Digital SLRs 24 Point & Shoot)
• HP (No Digital SLRs 7 Point & Shoot)
• Nikon (5 Digital SLRs 17 Point & Shoot)
• Fujifilm
Competitors Analysis and Interfirm Rivalry

• Competitor Analysis
– Resource Similarity

• Firms with similar resources are more likely to be aware of


each other’s competitive moves?

– Firms are less inclined to attack a firm that is likely to retaliate


– Firms with dissimilar resources are more likely to attack
– Do competitors possess similar types or amounts of resources
Existing Rivalry
• Cannon and Sony are using almost same
technology
• Companies are trying to differentiate their
products
• Cannon spent 8.22% of sales on R&D.
• Nikon SLR shipments grew at the 71.1% rate,
in comparison to Canon's 29.3% rate.
In 2006 – 2008 Canon lose their market share
because….
• DSLR cameras in Japan on 2008, you can see
that the top selling camera was the Canon
rebel XSI with 19.1% market share, on the top
second you can find Nikon D60 SLR camera
with 10.9% market share, on the third-place
the Nikon D80 with 10.6% and onto 4th place
you can find the Nikon D40 with 9.1%.
• On 2006 Canons has ruled that DSLR market
with 47% market share, when Nikon had only
33%. Only a year later, Canon lost 5% of its
market share and went down to 42% market
share, whether Nikon has gained 7% and went
up to 40% market share in the DSLR market.
• On 2008 Canons lost another 2% and went
down to 38% DSLR market share and Nikon
went down to 37% DSLR market share. Both
companies lost some market share because a
new player was entered the market (on 2006)
and that was Sony. Sony purchased Konica
Minolta in  start producing their own DSLR
cameras line called 'Alpha'.
Target of Sony
• Gathered 20-25% of market shares.
Competitors Analysis and Interfirm Rivalry

Interfirm Rivalry:
Attack & Response

Likelihood of Attack

– First Mover Incentives (advantage can be substantial)


Kodak is not a First Mover

Kodak made a digital camera in 1984 but they did not


want to disturb their strong market shares. At that
time they had 60-70% gross margin and they did not
go in digital camera for only 30% market shares.

Canon came up with the digital technology and Kodak


came in 2002 with digital camera and their launching
and installing the machines and change their whole
setup time was 4 years
Likelihood of Response

– Dependence on the Market


– Resource Availability
Dependence on the Market
• Market Dependence
– Kodak company is not dependent on the one
market because of high competition and low
margin so they entered in to the printer market.
• Competitor Resources
– The company competitors like Canon, Sony also
having huge resources and working in the multiple
markets.
Resources availability
Core Competencies (In Current Scenario)

Differentiation Strategy
• Improved Features and characteristics
• Medium Price
• High Customer Service
• Standardized Products
• Rapid Innovation
Thank you

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