Kodak and Fujifilm - Histories and Core Businesses - Essay Example

? Kodak and Fujifilm Introduction For more than 130 years Kodak has been a pioneer as well as developer in the photographic industry. It is an U.S. based company. On the other hand Fuji film, the Japan based company started its operation from 1934. In spite of invention of the digital camera, Kodak is unable to cop up with the continuous changes in the technologies. As a result in the year 2012 in the month of January it has to file with the bankruptcy protection. Whereas, the Japanese competitor Fuji film easily acquired the U.S. as well as the global market with continuous invention process. The main query of discussion revolves around whether invention of new things or transformation of management approach led the two companies under consideration towards two different paths. In this project a comparative study has been made between these two companies regarding their history, business approaches and management as well as marketing strategies. History and core business Kodak In the year 1888, George Eastman is the first person to put a simple camera on the hands of the consumers. Their innovative slogan was- “you press the button, we do the rest”. The complicated process of capturing a picture was made easy. From that time Eastman Kodak company engaged itself in making the way of photography easier. Now Kodak is not only known for photography but also for commercial entertainment and scientific application. The ways of communication and business have been changed as it increased involvement of different technology to combine images and information. Eastman had a dream to make photography “as convenient as the pencil”. Kodak not only fulfilled the dreams of photographers it but also ranked as a premier multinational corporation with highly known brand recognition. With different innovation and incorporation made by Kodak, the concept of photography emerged as a mode of enjoyment to the common people (Kodak, 2013). Fuji Fuji Photo Film Co. Ltd was established in the year 1934. The Japan government felt the need to establish a domestic photographic film manufacturing industry. It was inherited from the film operations of Dianippon Celluloid Company Limited. The company started producing photographic film, photographic print paper, dry plates and other photosensitive materials. From the year 1965 the name changed to Fuji color Service Co. Ltd. Next the company started to expand all over the world. It started acquiring the European market as well as the U.S.A. market. Different companies were acquired from different sectors for the diversification process. In every year it can be witnessed that the company is acquiring different types of business. Lastly in the year 2013 it has been found that it established FUJIFLIM COLOMBIA S.A.S. as a subsidiary in Colombia and FUJIFILM LATIN America (PANAMA) S.A. as a subsidiary in Panama (FUJIFILM, 2013). Management Approach Innovation and Relative success Kodak In a continuous process Kodak scientists and engineers are worthy of getting awards for their various contributions in the scientific and technical fields. In case of technology image science, computational imaging, audio signal processing, video analysis & motion processing and mobile communications create several new challenges for imagining technology. In case of material science it is all about Polymer Science, Chemistry Modeling, and Atomic scale Assembly and for micro devices it is about optical Electronic Materials, Micro fluidics and MEMS &MOEMS. In 1912 it first established a research lab which is used for industrial research. By the classical Musicians in the year 1930 Kodachrome film was invented. The first electronic scanner for graphic art was developed in the Kodak labs in the year 1937. Photo resist was invented by the scientist from Kodak. In the mission of Apollo 11in the year 1969, the electronic camera was built by Kodak to sent still pictures from the moon. The first digital camera was invented by Steve Sasson in the year 1975. The earliest practical megapixel CCD figure sensor camera was invented by Kodak in the year 1986. OLED or the Organic Light Emitting Diode technology was invented by Kodak researcher in the year 1987. In the year 1996 the engineers of Kodak has been named as “inventor of the Year”. The Chandra X-ray space telescope was also invented by Kodak in the year 1999. Fuji The root of the company rests upon manufacturing of photographic films. However steady innovation solutions were made among the broad range of fields from imagining to medical system. In the year 1934 motion picture film and Plate-making film was invented. X-ray film, color reversal film and still camera were invented in the year 1948. In the era of 50’s Microfilm, industrial X-ray film, color negative film and Fujitac was invented. Non carbon paper, video tapes for broadcasting, PS plates, tapes for computers and Micro filters was invented in 60’s. Presale and high speed color negative film was invented in the 70’s. In 1982 it was certified by the Motion picture film award, the scientific and Technical Academy award and the Emmy Award. FCR, Minilab system, Floppy disks, Quick snap the first recyclable camera of world, digital still cameras, Industrial FCR was invented. 1990’s is the period for Velvia, Color reversal, film, and digital endoscope system. Super CCD, Transnasal endoscope, Internal care products, skin care series, nutritional supplement, volume analyzer, Justia, super CCD EXR , Fujifilm Fine pix Real 3D system and 3D digital image system was invented during this period. Ethical and social responsibility Kodak The company operates in an environment friendly, ethical and social responsible manner. In this commitment the suppliers play a key role. The best practice is done by Kodak’s supplier as they are a member of Electronic Industry Citizenship Coalition (EICC). Kodak and EICC shared same type of goal to build the awareness and capability among the supply chain to accomplish constantly high standards of environmental and social responsibility. In the year 2004 it ranked 58th among the “100 Best Corporate Citizens” as per the Business ethics magazine. The ranking is based upon the quantitative measure of corporate service to the main seven stakeholders group. They include shareholders, employees, customers, the community, the environment, overseas stakeholders and women and minorities. Fuji The main code of conduct of Fuji depends on three aspects like respect for basic human rights, protection and preservation of corporate assets and information, open, fair and clear corporate activities and conservation and protection against the environment. In case of human rights the company follows exclusion of child labor, prejudice and aggravation, security of privacy and labor rights and maintains healthy and safety workplace. In case of Environmental preservation and protection it tries to minimize the environmental impact by maintaining regulations governing the waste and chemicals. Changing market condition Kodak The management of the Kodak took several steps to compete in the market. Kodak has to cut down its revenue as the other companies in U.S. are able produce the printing film at a cheaper rate. The traditional photography industry became more advanced by the inclusion of computer industry and software printers. Here Kodak suffered, as it was based upon on the traditional industry. In case of expanding product Kodak was endangered by the software giant like I.B.M. as they were more experienced in the I.T. sector. The shift from analog to digital equipment decreased the market share of Kodak. Mistakes of Kodak The research and design for inventing new products was not competitive with the market scenario as it increased the cost of production. The change of performance evaluation is also a cause for their fall. The employees were paid according to the level of performance. As the concentration shifted from general public to professional markets, the market share decreased (BT, 2013). Fuji film Kodak the ironic power house is now on the verge of death floor while Fuji Film is still finding itself on the growth curve though the implementation of several strategies as discussed below: Fuji concentrates more on changing its marketing strategies rather than developing new products. Various reforms were taken in their business. By diversifying their products from film making to other products, they continued to generate revenue. As they could understand that the photography is going for digitalization, they invested their revenues in new sectors. Expanding their business in Nano technologies, chemicals in films and cosmetics products helped them to stick to their position. Strategies for changing market condition Diversification Diversifications of product will diversify the risk and the profit generation will not suffer much. Cop up with the market trend Change in technologies as well as change in market trend must be regulated regularly. Proper merger and acquisition Proper merger and acquisition should be done with the different companies which will strengthen the financial position of the company rather than weaken it. Conclusion In spite of the strong corporate history Kodak failed to sustain in the market due to improper marketing strategies and future projection. Fuji can make it and become the market giant only because of the relevant strategies taken by its management. References BT. (2013). a-case-study-of-kodak.php. Retrieved May 2, 2013, from www.businessteacher.org.uk: http://www.businessteacher.org.uk/free-business-essays/a-case-study-of-kodak.php. FUJIFILM. (2013). History. May 2, 2013. Retrieved from: http://www.fujifilm.com/about/history/innovation_history/. KODAK. (2013). History_of_Kodak. May 2, 2013. Retrieved from: http://www.kodak.com/ek/US/en/Our_Company/History_of_Kodak/Imaging-_the_basics.htm. Read More