Kodak Case Study

2052 Words Aug 13th, 2008 9 Pages
To: Daniel Carp, CEO, Eastman Kodak Company
Re: Kodak’s Strategic and Industry Analysis
Executive Summary:
After taking a close look at the photography industry, it is evident that there has been a significant shift from the use of traditional film cameras to a market fully fledged and saturated with modern and updated digital cameras and digital photographic tools. As more consumers adapt to this technological change, the demand for digital cameras in the market grows substantially, which leads to greater competition between suppliers in the growth stage (being that this is still new technology).
Standing strong within the competition is Eastman Kodak. More than a decade ago, Eastman Kodak invested well over $4 Billion
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• Market cameras toward men
• Focus on international expansion (emerging economies such as China and Russia)
• Acquire smaller companies successful in the digital area
• Providing an in-home print station for all Kodak products that would deliver higher quality pictures Threats:
• Demand for traditional products is declining, especially in developed markets
• Photo-capable cell phones
• Intense competition in the digital photography industry – Sony, HP, and Fuji
• Approval of new strategy from shareholders was still inadequate.

Strategic position After conducting a thorough analysis of Kodak’s financial statement, it is evident that the assets owned by Kodak are not being used in an effective nor efficient manner (Refer to Appendix A). This is evident after taking a close look at the company’s returns on investment which were recorded between 1998 through 2000. This was recorded at just fewer than 10 percent. Another significant aspect that can be pointed out is reflected in 2003 with about 2 percent. This is indeed a rapid decrease which can be due in part to the technological changes and Kodak’s slow implementation of strategies. The company’s constant declining profit margins hint that there needs to be a drastic and effective improvement on

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