1. INSERT Kodak related photos
THE 21ST CENTURY
KODAK
Strategic Business Management –
Assignment #3
12/15/2013
Armen Khechoumian / Bill Burrows
2. The very short story of the very little black roll of film.
INSERT photo of roll of film
3. Environment Scanning
+ Internal Analysis
- Company Overview
- Organizational Strengths
- Organizational Weaknesses
- Customers
- Collaborators
+ External Analysis
- Competitors
- Business Climate
- Business Opportunities
- Business Threats
4. Environmental Scanning – Internal
Analysis
Company Overview
Kodak has transformed itself into a technology company focused on imaging
for business. Today's Kodak provides:
Disruptive technologies and breakthrough solutions in the fast-growing product
goods packaging, functional and digital printing markets, where Kodak is
enabling customers to achieve transformational improvements in
efficiency, quality and productivity
Quality enhancements for customers of our successful, established
businesses in graphics and entertainment. Professional services that help
businesses redefine information flow and security.
6. Environmental Scanning – Internal
Analysis
Organizational Strengths
-Market advantage: in business over 100 years
-Valuable assets: Global distribution
-Technology: coloring and printing and image capturing
Organizational Weaknesses
-Slow acceptance: digital technology
-Too big to fail: Kodak believed they didn’t need to change
-Over extended: going into markets that they were not familiar
Customers
Kodak has shorten their reach to the Consumer market by discontinuing their
Consumer camera lines. The do seem to focus on the young family people
25-40 who want to print their digital pictures by having print kiosks.
Collaborators
Belkin: Bluetooth photo sharing
DM-Drogerie Market: photo books/ greeting cards
7. Environmental Scanning – External
Analysis
Competitors
Fuji Film: direct
Business Climate
Describe the business environment that the organization operates in. This area should
cover all elements of the PEST analysis (political and
regulatory, economic, social/cultural, and technological environments).
Business Opportunities
Based on your analysis of the business climate, you should be able to identify
opportunities for the business. What is going on in the market place that the
organization can capitalize on? Briefly discuss any opportunities you have identified
from your research.
Business Threats
Based on your research, you should be able to identify threats for the business. These
are the things that are going on in the market place that the organization must remain
aware and on top of to keep their market position and the viability of the organization.
Briefly discuss any threats you have identified that are not addressed in the sections
above. Areas to consider addressing should include the threat of new entrants, the
bargaining power of buyers, the threat of substitute products or services, the bargaining
8. Challenges & Solutions
Organizational Challenges
We feel that Kodak is moving in the wrong direction if they want to regain their brands
strength they once had. To do so Kodak need to focus resources on things like the
technologies of the future and less of fading trends like image reproductions and printing
speeds of books that are being replaced by digital formats.
Proposed Solution
We propose a change in how Kodak as a company sees its self. The act of capturing an
image or taking a picture in the beginning was primarily for record keeping. This record
keeping was to have a solid state of past information like what a person looked like or
what happened at an event. We feel that much like the early days of pictures Kodak
should stay focused on the capturing of information primarily. Kodak should focus on
development of digital Professional and Consumer grade movie and still cameras, the
sensors used for capturing the images on those cameras, and eventually digital
projection of those captured images.
9. Strategy & Formulation
To be able to make such as major change to such a multi faceted company such as
Kodak we will need to do a major restructuring to departments like the Commercial
printing and Film development/production. Other departments such as Consumer
cameras will be reengineered and will expand hiring electronic engineers from
competitors like Sony and Canon. We will continue to deliver our Customer grade
cameras and printing equipment at competitive pricing to create revenue for our
research and development department. At first to gain strength in the Commercial
image capturing market we will need to imitate the industry leader until we can convince
some of their engineers to be part of our team. As our development and research team
grows we will make a move for the industry leader in Commercial movie and still image
capturing. To stay an industry leader we will pay a competitive wage to our teams who
create the cutting edge technology and when we release our newest Commercial
sensors we will move the older sensor technology to our Consumer grade products.
This will be a technology that builds off of the past technology much like film did for 100
years earlier. To make this successful the Commercial camera/sensor part of the
company will have to be supported by stronger Consumer grade sales to strengthen
belief in the Kodak brand for image/information capturing.
11. Strategy & Formulation – Sales & Marketing
Marketing Campaign
The marketing campaign surrounding the new Kodak direction will revolve around consumers at first
and their use of cameras to capture their special family moments. The commercials will show the
history America has had with the Kodak Company and how consumers can still count on Kodak to
deliver a dependable product.
Later after the BETA Testing we will run advertisements alluding to a change in the Commercial
market for digital image capturing through the new technology developed by Kodak.
Slogan
Kodak’s new tagline will be “From past to present to future moments Kodak will be there to help you
capture it all.”. This simple slogan stresses to consumers that Kodak and its strong history with image
capturing and record keeping is something that they can rely on for quality.
Marketing Strategy
To market the changes in Kodakour marketing team will use magazine advertisements, TV/Web
commercials, and billboards to create a ground swell, to make Kodak a household name that people
undoubtedly believe in again.
Social Marketing Strategy
Advertising on Facebook and Twitter will be some of the strongest parts of the first phase of
advertising. Social media campaigns where we give away discounts on products for customer survey
information. Social media also creates CRM and helps relieve the costs of advertising through word
of mouth.
12. Strategy & Formulation – Legal &
Ethical
Legal Factors
Because we will be looking to higher competitors current and former employees we will possibly see
some lawsuits for copy write infringement but we will make sure to document all our original works
and paten them as Kodak has done through out the company’s long history.
Ethical Considerations
Because of the intensive development and research that will be done to achieve the new direction of
Kodak all employees will have to sign disclosure and no competition contracts to secure the
information and technology that may be stolen by competitors.
13. Financial Data Analysis
Financial Overview of the Company
Since Kodak has just started climbing their way out of a Chapter 11 situations and has just recently
started trading publicly again there is limited amount of information about stock history. But if the
plans are followed as we have laid them out then Kodak will be back on top as a market leader.
INSERT – Graph #1
14. Financial Data Analysis
Financial Overview of the Company
Since Kodak has just started climbing their way out of a chapter 11 situations and has just recently
started trading publicly again there is limited amount of information about stock history. But if the
plans are followed as we have laid them out then Kodak will be back on top as a market leader.
INSERT – Graph #1
15. Strategy Implementation
Financial Overview of the Company
Since Kodak has just started climbing their way out of a chapter 11 situations and has just recently
started trading publicly again there is limited amount of information about stock history. But if the
plans are followed as we have laid them out then Kodak will be back on top as a market leader.
* REDO CHARTS ON KEYNOTE
16. Strategy Evaluation
Evaluation Strategy & Benchmarks
The evaluation of this change of direction for Kodak will happen over many stages. First will be
tracking money that has been reallocated to the reengineered departments for research and product
development. Then we will watch the response to the launch of the new Consumer line of product by
December 2014. After that we will move forward to Beta testing that will lead to professional feed
back on the Commercial line of products. And if all is well then we will launch the final steps of the
Commercial line of products with success.
