Kodak 's Product Innovation And Its Impact On A Competitive Industry

1504 Words7 Pages
Kodak’s product innovation allowed them to lead the world in digital camera sales; however it wasn’t all smooth sailing for this iconic company. Kodak was very slow to react to changes in the marketplace i.e. the tech revolution, even though they eventually transitioned into digital technologies, with the sales of these products being a huge success, they only yielded slim profit margins, resulting in a devastating turnover. Many factors would have contributed to this undesirable situation however implementing planning strategies would been beneficial to Kodak in regards to their profit expectations. In the case study ‘Mistakes Made on the Road to Innovation’ (2006) many of Kodak’s management problems were discussed. Kodak’s inadequate or…show more content…
Strategic planning involves deciding on the actions and resource allocations in order to build a strong foundation for an organisation. Not only do they set a clear goal, but they provide structure and direction which increases an organisation’s chance of succeeding (Kumpf, 2004). Many authors appreciate the benefit of incorporating these plans into businesses. Kaplan describes how many executives fail to see the value of strategic planning yet argues that strategic planning need not be a waste of time if approached with the right goals in mind, arguing that the key is to create an environment of preparedness (Kaplan, 2003). Lauenstein echoes this idea emphasising the importance of strategic planning whilst stressing that many executives do not fully understand the functions of this strategy, hence not being able to reap the full benefits of this approach (Lauenstein, 1986). Nevertheless, strategic planning is not a standardised process across every organisation, and must be adjusted to fit each organisation taking into consideration a number of factors. By setting up a clear and effective strategic plan an organisation can increase productivity to move forwards with their new approach. As Dymowski suggests, incorporating a structured method can be a very effective in helping form the organisation’s strategic plan (Dymowski, 1992). One
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