Kodak and Fujifilm Companies - Research Paper Example

? Kodak and Fujifilm Companies History of Kodak Kodak is an American multinational company that deals with photography and imaging equipments, services, and materials. The company is located in Rochester, New York. George Eastman started the company in the year 1888. The company is best known for the sale of photographic film products. The company used a razor and blades strategy. This strategy involves selling cameras that are inexpensive, while at the same ability to make more returns. The returns are from film, chemicals, and paper. The company was able to command 90% of the market by the year 1976. The 90% market command was because of sale of films and the sales of cameras were able to command 85% of the market share in the USA (Burley, 2007). History of Fujifilm Fujifilm is a Japanese multinational company that is based in Tokyo, Japan. The company deals with activities like production, development, servicing, and sales of colored photographic films, photofinishing equipments, digital cameras, color paper, photofinishing chemicals, graphic arts equipments, medical imaging equipments, optical devices, printers, photocopiers, and panel display. The company was established in the year 1934. The aim of the company was to be the very first Japanese manufacturer of photographic film. Within a period of 10 years, the company was able to produce motion-picture films, photographic films, and x-ray films. The company was able to enter into optical glass business in the year 1940s. Other products produced were lenses and equipments in the market. Diversification of the company’s products was done after the Second World War. The company was able to produce medical products, printing, magnetic materials fields, and electronic imaging. Both Fuji Photo and Rank Xerox that are UK Company launched Fuji Xerox Co. Ltd. Fuji Company was able to intensify its businesses overseas in the 1950s. This company was able to enjoy a monopoly in Japan market (Burley, 2007). Core businesses Both Fujifilm and Kodak have focused on imaging and photography as the core business. Kodak had started earlier than Fujifilm. Fujifilm Company gave a lot of emphasis to market changes and through that, it was able to maintain a reckoning up date. On the contrary, its counterpart Kodak is in bankruptcy protection. Management of Kodak Company The management of the company failed to move fast into the digital world. The company was able to face technological discontinuities. This is because the company failed to combat the new changes. The company was reported to be full of complacency. The top officials of the company failed to employ quick strategies to combat the changes in technology. The company can be said to have been built on a culture of innovations and change. The success earned by the company in the early years of the 1970s made its leaders to block their ears from the cry of the customers about the looming failure that was ahead of the company. The poor management finally led to the collapse of the company. Unlike Fuji Film Company that decided to embrace technology, Kodak Company failed to embrace technology. They were not able to go digital at the time when Fuji Film was going digital (Don, 2011). Management of Fujifilm The company was able to build strong and robust corporate constitution. This was possible through implementation of structural reforms that were able to encompass every facet of its operations. The company was able to expand its business in the global markets such as emerging countries. A lot of business deteriorated in Europe due to flooding in Thailand. This greatly affected this company and as a result, the company was able to lose a lot of earnings and revenues from Europe. After this downturn, the company was able to employ new medium term management. The new medium term management was covered in the VISION80 plan of the company. The plan was to cover two years. The two years were 2013 and 2014. Unlike a Kodak company, the company was able to go digital with the new changes in technology. The management of Fujifilm was also able to gain access to the USA market through the Fuji Photo Film USA. Unlike Kodak, this company was able to lower its prices to be able to appeal to many Americans. The company finally won since many Americans were able to shift towards its products. Kodak Company was able to shift to digital in the year 1975 (James, 1989). They were able to make a digital camera though fears that the camera might interfere with its photographic film business led to the collapse of the digital version (Burley, 2007). Other management differences Fuji film management was able to diversify their business areas rather than digital imaging unlike Kodak. Kodak Company failed to diversify its products that led to its bankruptcy. It could not keep the same pace as a Fuji Film Company. The management of the Fuji Film Company was able to transform the company from a small supplier of photographic films into a relatively larger dealer of healthcare and electronics operations. The management of the Fuji Film Company was able to tap its expertise in chemicals to broader uses. Unlike Kodak, they were able to produce drugs as well as liquid-crystal display panels. Unlike Kodak Company, the Fuji Film Company was able to survive the advancement in digital photography and was able to venture into new businesses. The diverse resources that Fuji Film Company had helped them to prosper (Barney, 2011). This was after the era of digitalization unlike Kodak that was caught unaware of the digital era. The difference in the strategies applied in management played an important role in the manner in which the two companies embraced innovation. Slow adaptation and complacency dominated Kodak, while its counterpart Fuji film was able to embrace innovation and diversification spirit of its products. Approach to ethics and social responsibility The reflection in the companies’ profitability is a result of the approach to social responsibility and ethics. Both companies had an aim of giving back to the community. They did this through ethical practices. Some of the ethical practices were the maintenance of production standards that were able to satisfy customers on all ends. Changes decision-making processes tend to embrace a lot of flexibility. It also offers the best platform for diversity as well as innovation in any organization (Burley, 2007). Three ways of building flexibility Flexibility is a requirement for many businesses to back up their decision-making processes. An organization that has built good flexibility is able to effectively make good decisions. This is these organizations are able to effectively diversify their operations for the sole benefit of the business. Flexibility can be built in a number of ways. Some of the possible and recommended ways are developing a working framework, having the knowledge of tradeoffs, and being iterated. Working framework This is the most essential strategy in building flexibility and backing up decision-making processes. The framework built by the business should be able to connect customers, skills, market, ideas, and business models. The skills are essentials for an innovative aspect of the business. The models are useful when developing structural strategies for the business. Knowledge of the trade-offs A properly working framework always gets many praises from the customers. The management of the business must have the knowledge of the various tradeoffs in the market. This helps the business in fostering proper decision-making process. Being iterative Being iterative is to be flexible to change. Diversification of the business products is crucial for purposes of avoiding being locked out of business. The diversification of Fujifilm really helped it to overcome digitalization era. Reference: Burley, R. (2007). Back to the Future- Photography in the 21st Century. A look at the two Rival Companies, Kodak and Fujifilm. The photographic Historical Society of Canada, 2 (3): 12-89 Barney, B. (2011). Fuji Photo to diversify, shift to holding company system. The Japan Times Online, 3 (2): 13-78 Don, R. (2011). Detailed Company Report: Kodak wins key battle in Apple patent case. Rochester Business Journal, 2 (3):12-67. James, T.H. (1989). Kodak embraces digital revolution: 75 years of Kodak Research. Rochester: Democrat and Chronicle Publishers, Pp. 45 Read More