Polaroid Case Study Essay

Polaroid’s overall growth strategy was to be the number one and only instant photography company through the invention of it’s own technology in its own laboratories. “Growth objectives are a key part of an organization’s overall strategic plan. Almost all strategic plans deal with the size the company wishes to be in the future” (Human Resource Management pg. 110). One of the ways in which Polaroid planned to be the only instant photography company—in turn would also make it the greatest—was through 533 patents. “Polaroid is still characterized by many as a company that hold too tight a grip on its patents” (Human Resource Management pg. 130). Polaroid’s strategic plan was always to stick with their one invention, improve on it’s technology, and target the sole market. This affected HR planning and strategy because Edwin H. Land did not want to enter other markets; Land wanted Polaroid to be about instant photography. The decision to stay in only one market affected HR from doing what they are suppose to do. It prevented them from being creative or innovative.

The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs.

1. Evaluate Kodak's strategy in traditional photography. Why has the company been so successful throughout the history of the industry?

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

High level, intense rivalry may result with profit lost for the company. In most cases, new entrant barriers are high due to the intensity of rivalry (Porter, 2008).

The Kodak Company was undisputed in the photo industry until Fujifilm, a Japanese company, was established in 1934.  Since its inception Fujifilm has become a leader in motion picture photography, audio and videotape and the floppy disc industries.   The company also boasts products such as still cameras, camcorders, photofinishing equipment, paper and chemicals, imaging and information products for the office and health care markets.

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

In late March 1996, Ralph Norwood was faced with the task of restructuring Polaroid’s capital structure. In the past, Polaroid had a monopoly in the instant-photography segment. However, with upcoming threats in the emerging digital photography industry and Polaroid experiencing recent losses in their market share due to Kodak’s competition, Gary T. DiCamillo, recently appointed CEO of Polaroid, headed a restructuring plan to stimulate the firm’s performance. The firm’s new plan has goals such as to aggressively exploit the existing Polaroid brand, introduce product extensions, and enter new emerging markets such as Russia in order to secure Polaroid’s future.

In 1888, George Eastman made the first light and portable camera under the company name Kodak (Graham 28). These cameras gave people the ability to take a photo almost anywhere. The cameras had to be sent back to the factory so the photographs could be printed. Twenty years after Kodak’s first camera, they produced an improved camera, called “Brownie”. The Brownie was simple to use, making the art of photography boom. Flash cameras did not appear until the 1930s, letting people take pictures in areas with dim or little lighting. In 1947, Edwin Land invented the instant camera. Land got the idea after his daughter asked to see her picture after he took her photo. The next step in improving the camera was by making it digital, which was done in 1975 by a Kodak employee. As the camera gets smaller and simpler to use, the quality of the photographs it produces gets better.

Kodak’s competitive advantage began in black and white film products, even though the company did produce cameras and camera equipment as well. As the years progressed, Kodak “paid progressively less attention to

Tremendous rivalry with Fuji film; recognized the threat of digital and tried to diversify, but slow on the strategic and tactical implementation.

- The rivalry between the existing competitors: The rivalry between the three competitors is very high all of the three companies sometimes launch new cars at same. The media and analyst conduct comparisons and reviews of the launched cars and intensify the competition and rivalry between

1. The peel apart film which required the user to physically pull the film out of the camera and,

Eastman Kodak Company, commonly known as Kodak is an American multinational imaging and photographic equipment, materials and services company headquartered in Rochester, New York, United States. It was founded by George Eastman in 1889. Kodak is best known for photographic film products. During most of the 20th century Kodak held a dominant position in this sector. In fact, Eastman Kodak Co. is one of the dominant market share holders within the camera and other photography-related industries. Kodak pioneered amateur photography and is often credited for the invention of roll film and the first camera. The markets for color film and color photofinishing in 1954 were controlled by Kodak. It had over 90% of the amateur color

In 1925, a German camera maker named Oskar Barnack, developed a new, ground-breaking camera called the Leica. It was not until 1933 that a company responded to the success of Barnack’s creation and produced their own 35 millimeter version of his innovative design. Thus was born the Canon Company.