History and Core Business of Kodak Films - Case Study Example

KODAK AND FUJI FILMS al Affiliation) History and Core Business of Kodak Films The Company was founded in the year 1888by George Eastman. Its operational strategies were based on a method that focused on selling inexpensive cameras. This was an emulation of the Razor and Blades Strategy (Cummings 2012). By the year 1976, the company had made sales approximately 85% of cameras in various parts of the United States of America together with 90% sales of cheap chemical films (Cummings 2012). Currently, the company focuses on provision of digital makeovers and is realigning most of its activities in order to meet the increasing demand of digital cameras (Cummings 2012). History and Core Business of Fuji Films Fuji Films is one of the main competitors of Kodak Films; it is Japanese Company that entered the United States of America in the year 1965. However, the establishment of this Company took place in 1934 in Japan, after taking over the shares of the Dainippon Celluloid Company Limited that had split its shares at that time. By late 1950’s, the company had increased its operations in overseas companies, and then later extended to the United States of America (Grant 2007). The core business of Fuji Films Company entails the production, development as well as the sales of films, cameras as well as other forms of photographic images at a relatively cheaper price (Grant 2007). Currently, the company has focused on production, servicing, development and sales of low price color films and digital cameras (Grant 2007). The success of Fuji Films was noted in 1997 when its sales rapidly increased from 10% to approximately 97% due to the aggressiveness that it operated its activities in various parts of the world (Grant 2007). This has continuously made it one of the strongest competitors of Kodak Films. Similarities in Approach in Management Pursued by Kodak and Fuji Films Both the two companies focus on aggressive marketing and sale of low price products and services in various parts of the United States and other parts of the World. This has been associated with the massive success shown by the two companies in the early 1990’s and the late 1990’s (Conklin 2011). For instance; historical records indicated that in the late 1990’ Kodak employed the use low price sales that made it one of the largest producers of films and cameras in the United by specifically selling approximately 90% of chemical Films in the United (Conklin 2011). The Aggressiveness in operations was also shown by Fuji Films in 1997 where its sales rose from 10% to 97% in the United States. Another similarity shown by the two companies is their aggressiveness to operate in the United States Film industry. The two Companies have been competing over-time to increase their sales and their general success in the United States. Fuji Entered the United States market in 1965 and immediately began marketing its products aggressively through provision of low price products and services (Grant 2007). The entry of Fuji Films in the United States compelled Kodak to increase its aggressiveness in order to increase its competitive advantage within the market (Grant 2007). Kodak and Fuji Films have exhibited diversification in relation to provision of services and products. Both the Companies expanded their activities and do not only focus of provision of cheap chemical films and low price cameras, but have also extended their services to other activities such as provision of color and non-colored printers i.e. Kodak has extended its activities to the provision of Laser Jet Ink Printers as well as production of x-ray films, a scenario that has been also been exhibited by Fuji Films Company (Cummings 2012). In addition, the two companies have undergone tremendous changes in relation changing their brand names their modes of operation. One the most evident changes that have been exhibited by the two companies in the change of their names from time to time. In the year 1889, the Kodak Company was referred as Eastman Co. but later changed its name to Eastman Kodak Company in 1892 (Cummings 2012). A change of Company name is also an action that was taken by the Fuji Films, which was initially referred as Fuji Photo Films Co. Limited. There are also other changes in operations that have been employed by the two companies in the recent times for instance; both have shifted to production and development of digital cameras services and products (Grant 2007). Differences in Operation Management Exhibited by Kodak and Fuji Films Companies Taking into consideration the aspect of product development and Innovation, Kodak has indicated a great sense of concentration in provision of digital images through facilitating installation of digital print shops in various parts of the world (Grant 2007). Moreover, the company has also focused on establishment of its shops online in order to improve its competitive advantage within the film and camera industry (Cummings 2012). This has made it the leader in the digital photos world; in addition, the innovative nature of Kodak’s operations has been exhibited by its aggressiveness to enter into the market of the Jet Ink Printer thus facilitating the provision of modern color printers in various parts of the World (Cummings 2012). Research has indicated that the management approaches applied by the Kodak Films Companies has made it a favorite Consumer Brands, with a large and strong technology base, major caused by the essence of innovation promoted by its management team. In this regard, analysts have asserted that the company focuses on provision of direct consumer needs (Conklins 2011). On the other hand, the Fuji Films Company has been directing its focus on a different management strategy in relation to the manner through, which it undertakes innovation. To begin with, the company has indicated a great sense of focus on provision of print services to its consumers as well as the provision of digital cameras together with spending on such services. Fuji Films has show a great sense of concentration of venturing new markets as well as other connected consumer markets (Cummings 2012). Moreover, the essence of changing the company’s name from Fuji Photo to Fuji Films has been viewed as a strategy to discover new methodologies of providing services using new technologies, rather than meeting the direct consumer needs (Grant 2007). Consequently, the company has been undertaking a strategic alliance with other Film companies, a strategy that is not common with the Kodak Film Company (Grant 2007). Other Management Differences that have Impacted the Success of Kodak and Fuji Films One of the most apparent differences that have impacted the success of the two companies on a different perspective is the engagement in online business Activities. In 2012 March, the company made an announcement that it would invest 23.8 million US dollars to sell online photo services through a partnership with the Shutterfly Inc. an online publishing Company (Cummings 2012). This has since increased its clientele based in the entire world, taking into consideration the fact that rapid technological advancement has shifted the focus on most clients towards access of online services. On the other hand, the Fuji Films has shifted its focus on provision of color printing services and products (http://cameras.reviewed.com n.d). This has increased its popularity in relation to provision of these services as compared to Kodak that is currently focusing on online business processes. Another differences exhibited by the two companies is ascribed to the use of different company logos, the logos are designed in different ways and experts have asserted that the level of appeal created by these logos among clients is a great determinant of the clientele attraction, hence success of the companies. Kodak and Fuji’s Ethics and Social Responsibility and their Impacts on Success Since 2012, Kodak has been associated with issues ascribed to legal ethics that have affected its image to some extent among its clients and the entire global dimension in general. The in 2012, the company engaged in a dispute with Apple Inc. Company over allegation of patent; this case is believed to have tainted the image of this company and might have had significant impact on its profitability (Cummings 2012). In addition, the year 2010 was a challenging year for Kodak Company; it was faced with issues of bankruptcy cases that affected its operations over a significant period of time (Cummings 2012). The Company had to spend a lot of money in court in order to defend itself from being declared bankrupt: This had a significant negative impact on its success majorly by creating a negative image among its stakeholders, as questions arose in regard to its financial management structures. In addition, Kodak was affected by its decision to cut off approximately 2700 workers in 2012. This was perceived as a poor move owing to the fact that the company had made success and was viewed as a major employment sector for many families. In regard to Fuji Films, its production of a mirror less camera that was recently alleged to have a light leak challenge tainted its image to some extent. Experts have asserted that Fuji being one of the largest Film and Camera Companies should not be producing goods that are of sub-standard quality. The X-T1 mirror-less camera is believed to have been alleged to have some light leak-problems that could affect the health of its users (http://cameras.reviewed.com n.d). Extent to which both Companies have Adapted to Changing Market The contemporary technology market has been characterized by rapid changes in relation to technology advancement. This has changed modes of operation as well the types of services and products produced by companies that offer technology services (Grant 2007). Specifically, the current film and camera industry has shifted towards digital services and online modes of operations. In this regard, both Kodak and Fuji have focused on production and development of digital cameras as well as films. Kodak has made an extra effort and shifted its focus on provision of online services through a partnership with Shutterfly Inc. Company (Cummings 2012). Recommendations Owing to the fact that the current technology market is characterized by high levels of competition and rapid changes, it is imperative for companies to focus on research and innovation in order to identify new modes of production and operation. This would ensure that they meet the ever changing demands of consumers and improve their competitive advantage. Moreover, companies can also engage in partnership and networking in order to facilitate their success through exchange of ideas and sharing of resources. This is important as it guarantees the success of small scale companies or companies that have not been properly established. Consequently, companies should focus on participation in Corporate Social Responsibility, not as a means to market their products, but rather as a means to create a positive image and relationship within the society. References Conklin, D. (2011). The global environment of business: New Paradigms for International Management. Ivy Business Journal, 74(4), 34-38. Cummings, S. (2012). Kodak professional black-and-white films. Rochester, N.Y.: Eastman Kodak Co.. Grant, T. (2007). International directory of company histories. Chicago: St. James Press. How to Solve the Fujifilm X-T1 Light Leak Problem. (n.d.). - Reviewed.com Cameras. Retrieved May 4, 2014, from http://cameras.reviewed.com/features/how-to-solve-the-fujifilm-x-t1-light-leak-problem Read More