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Kodak case analysis

Incremental and Disruptive Technology

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Kodak case analysis

  1. 1. Kodak Jennifer Ko Jenny Quach David Tamayo Shinichiro Yamamoto
  2. 2. Takeaway • Better organization and communication among divisions • Invest in corporate culture and consistency • Commitment to R&D projects and forward thinking
  3. 3. Kodak’s Business Model • “You press the button, we do the rest” • Razor blade strategy • Leader in photo-finishing process • Incremental improvements • Vertically integrated
  4. 4. Digital: The Disruptive Technology • Business model • Customer behavior • Value chain • Marketing strategy
  5. 5. Kodak’s Attempt at Digital • “Film-based digital imaging” • Developed the first digital camera in 1975 • Developed the Photo CD in 1991
  6. 6. Strategy Mistakes • Rejecting opportunities that at first glance appear too small - Kodak was attached to the same profitability of the traditional photography business model (1983-1989) - Spreading its digital investments too broadly
  7. 7. Process Mistakes • Strangling innovation with the same tight planning, budgeting, and reviews applied to existing business - Razor-blade business model, insisting film- based digital imaging (1990-1993) - Complacency in its Rochester, New York base blinded the company from technological leaps elsewhere
  8. 8. Structure Mistakes • Isolating fledgling and established enterprises in separate silos - Digital imaging operations with silver-halide photographic division separated across departments - Inconsistency and confusion of communication between top and middle managers
  9. 9. Skills Mistakes • Allowing innovators to rotate out of teams – Changing CEO frequently, thus changing its strategy about digital transformation Overall, Kodak avoided risky or innovative procedures and policies, and suffered from a mentality of perfect products, rather than the high-tech mindset of make it, launch it, fix it
  10. 10. Kodak vs Fuji Film
  11. 11. 0 50 100 150 200 250 300 1985 1990 1995 2000 2005 2010 NetSales(bn) Kodak Fuji Film Source: http://www.electronicjournal.co.jp/article/PDF/20120601.pdf Transition of Sales
  12. 12. Kodak Fuji Film Comparison of Diversification
  13. 13. Reasons • Inconsistency of Management • Top Management • Strategy for transformation of the firm • Communication within the organization • Corporate culture • Complacency • Sticking with current business model • Too much focus on profitability, ROI, and shareholders
  14. 14. Kodak After Case
  15. 15. Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/
  16. 16. Source: http://www.technologyreview.com/news/426323/you-press-the-button-kodak-used-to-do-the-rest/
  17. 17. Recommendations • Printing in the medical field
  18. 18. Thank You

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  • UngwangJBoiteto

    Aug. 15, 2020

Incremental and Disruptive Technology

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