Case Study on "The Polaroid Corporation"

5590 Words23 Pages
1.1 Introduction Polaroid Corporation was founded in 1937 by Edwin Land who dropped out of Harvard College in order to focus on the research on the polarization of light. He developed the first instant camera in 1948. From that time onwards the instant camera was the main product of the company. 90% of the company’s efforts were tied up to this product over the next decades. Within four decades, sales of the firm grew from $142000 to over $1 billion. Significant break- through of Polaroid included: ➢ Instant Black &White film (1954) ➢ Instant color film (1960) ➢ And the SX-70 camera and film (1972) Protected by patents, the competition for the company in the field of instant photography was low. The attempts to diversify…show more content…
However, even in Japan Polaroid enjoyed a dominant market share. Thus in the consumer market, Polaroid’s strengths for instant photography was unrivaled. 1. Rivalry within the business: Rivals are competitors within an industry. Rivalry in the industry can be weak, with few competitors that don't compete very aggressively. Or it can be intense, with many competitors fighting in a cut-throat environment. Factors affecting the intensity of rivalry are: ➢ Number of firms - more firms will lead to increased competition. ➢ Fixed costs - with high fixed costs as a percentage of total cost, companies must sell more products to cover those costs, increasing market competition. ➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry. Polaroid faced a little competition from “Kodak” company in instant camera industry; though they were sue by Polaroid for infringement of patent. Fuji and other company producing “digital camera” which was a competitive product of “instant camera”. So, we can say, Polaroid faced Competitive rivalry with better substitute product. 2. Threat of substitute products: This is probably the most overlooked, and therefore most damaging, element of strategic decision making. It's imperative that business owners (us) not only look
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