Marketing Strategy For Kodak Is Market Penetration

2853 WordsJul 24, 201512 Pages
Ansoff Model is also defined by amount of investment and risk: Strategy Investments Probable success Market Penetration Basic 50% Product development Multiply 8 times 33% Market development Multiply 4 times 20% Diversification Multiply 12-16 times 5% Ansoff Model was invented a while ago, but still is quite useful to provide number of opportunities, relevant in most markets. Surely, the position of the company and opportunities need to be researched in details before any decision is taken. The matrix also does not give a proper solutions and methods, it conducts the main guideline just for start. (M. Richardson, C. Evans, 2007) The most obvious decision for Kodak is Market penetration. Ansoff Matrix introduces this strategy as the…show more content…
However, it still could be a good direction for Kodak, which is a technological company and considered as reliable due to the noble past. Strategy of Market Development implies to introduce an existing product on new market and usually requires advanced marketing skills. This strategy is implemented in the case when company needs more space to grow (Strategic Planning, 5.03.2015). This hardly could be said about Kodak, and the strategy requires investments on marketing or distributional channels, depend what direction the company chooses: geographically or to different customer segment. However, it could be still not a bad strategy to follow, for example, Kodak could introduce imaging on B2C market, which is not really big at the moment, but Kodak has all necessary equipment and knows how to work with B2C. Nevertheless, Kodak has chosen neither of them but the diversification model, which require the biggest investments and has the highest risk. Kodak wants to enter with a new product on a new, unknown for Kodak and very competitive market. The company undoubtedly relies on the known brand and many users, who trust it on photography field. Although on smartphones` market a lot of trusted and advanced companies, which have much more opportunities with bigger budgets and powerful marketing, are fighting hard to win at least 1% of the market. Therefore, Kodak`s decision looks like an act of desperation and shows how keen is Kodak to be back on

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