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#KODAK PICTURE KIOSK G4 PRICE PROFESSIONAL#
Key Success Factors Technological capabilities Rapid design-to-market cycle times Reputation for producing high-quality consumerelectronics Reputation for producing high-quality opticaldevices (cameras, binoculars, microscopes, medicalequipment) Distribution network that includes large electronicschains and local camera retailers Involvement in multiple segments of the industryvalue chaincamera production and sales, printingsupplies, professional photo processing 19 20. Industry Driving Forces: AnswerQuestion No2 Rapid decline in demand for traditionalphotography equipment in developedeconomies Rapid growth in demand for digital camerasin developed economies Steady decline in demand for film and photoprocessing Development of new imaging technologysuch as photo-enabled wireless telephonesand high-megapixel digital cameras18 19. Industry Analysis through 5-forces:Answer Question 1 Strong entry barriers Buyer in strong position Moderate to weak position of Supplier Huge threat from substitute Strong rivalsApparentlyUnattractiveIndustry17 18. Porters 5 Forces Cont.Rivalry among Competitor Intense competition among the rivals Strong Competition16 17. Porters 5 Forces Cont.Potential New Entrants Huge capital & specialized Not relay on any company Strong entry barriersSubstitutes ProductsLow switching costLow price of substitutesHigh bargaining power Strong threats15 16.
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Porters 5 Force in terms ofphotographic industryBuyers bargaining power Have more choice Switching cost lowStrong bargaining powerSuppliers Bargaining Power is Out side the country from global market moderate to weak14 15. obaseBargaining Rivalry AmongBargaining Power ofCompeting Firms inPower ofSuppliers IndustryBuyers-Fewsubstitutions, i.e.Threat ofMobile Substitutephone, Camcorder,Productso-Traditional Low Moderate High 13cameras 14. Porters 5 Forces: DigitalCamera HighNumbers of digitalTechnology,technolo Threat of Threat of NewNumbers of digital Competition, knowcameras ,trend ofhow, economies of gy driven,digital marketNew Entrants cameras ,trend ofscales, and highdigital marketsuppliers numbers move fast,investmentChina Entrantssuppliersworldwide, of players, lower priceworldwide, Chinabase strategy. Porters 5 Forces ModelQuestion: How competitiveforces affect industryattractivenessTo aid firms in analyzing competitive forces in an industry environment. Kodak Product Four distinct sub-product Digital cameras Home printing Online services Retail kiosks and mini-labs10 11. Company Overview.ContDecember 2010: Standard & Poors removedKodak from its S&P 500 indexJanuary 19, 2012: Kodak filed for Chapter 11Bankruptcy Protection The companys stock wasdelisted from NYSE and moved to OTC exchange.Following the news it ended the day trading down35% at $0.36 a shareFebruary 9, 2012: Kodak announces it will exit thedigital image capture business 8 9. Company Overview.Cont2001: Kodak is pushing aggressively into China, animportant growth market2003: Carp unveiled the plan to invest $3 billion in thenext three years in digital products by cuttingdividends by 72% - to 50 cents per share2004: Kodak announced that it would stop sellingtraditional film cameras in Europe and NorthAmerica, and cut up to 15,000 jobsJanuary 2005: The Kodak EasyShare-One DigitalCamera, the worlds first Wi-Fi consumer digitalcamera capable of sending pictures by email, wasunveiled 7 8. Company Overview.Cont1980: Fuji emerges as a serious competitor1994: Kodak abandoned its non-imaging health-relatedbusinesses began to invest in digital imagingproducts for medical practice1997: Kodak was a high-cost manufacturer with agrowing portfolio of digital products which waslosing hundreds of millions of dollars annually1997: Restructuring that eliminated 19,000 jobs and cutmore than $1 billion from annual costs1999: Kodak entered the digital radiography market6 7. Concentrates onfilm and basic cameras5 6. Cont1879: George Eastman invented the dry-plate processand filed patent for a machine that coated dryphotographic plates1880: George Eastman established the Eastman DryPlate Company, at Rochester N.Y.1884: Introduced paper roll film1889: Invented perforated celluloid film1900: The Brownie box camera went on the marketwith a price of $11935: Introduced color film1960: Brought the Instamatic camera to the market1970: Major sales growth for Kodak. Agenda Company Overview Product line External Factors Analysis Porters 5 Forces Model Industry Driving Forces Key Success Factors Strategic Group Mapping Internal Factors Analysis Core Competences SWOT Analysis Value Chain Kodak Strategy Based on Case Why Kodaks 4-year Strategy failed Reasons for Failure Based on Current Situation Recommendations Conclusion 3 4.