A New Strategy for Kodak - Coursework Example

Assignment 3: A New Strategy for Kodak Introduction In the present day scenario, in order to sustain for a longer duration in the global market companies need to strategize their move in a more effective manner with considerations to the demands and preferences of the customers along with identifying the severity of the competition in the external market. Notably, to have a better understanding in this context, the example of Eastman Kodak and their rise and fall in the global market will be vital to depict. It is a widely recognized fact that Kodak has dominated the market for a long time in its respective market. However, certain decline has been experienced by the company in the recent times owing to which it needs to strategize its plans and approaches of conducting business as per the present trend (Fairleigh Dickinson University, 2014). Contextually, this particular report will emphasize on analyzing the corporate level strategy of the company and provides a set of recommendations for improving declining sales, increasing profitability, and expanding the company to the cloud service industry 2. Essential Objectives in the Cloud Services Industry Eastman Kodak is faced with certain operational issues that have resulted in the decline of its sales and reduction in profitability. Contextually, the company will need to set certain specific objectives which will result in amending its declining business performances. The objectives can be in the domain of finance, operations, marketing or human resources section. In this regard five key objectives can be established for the company in order to succeed in the current highly competitive business environment and reinforce its present business condition. These objectives are articulated below: 1. Development in the core business operation 2. Attaining product diversification and promoting innovation 3. Hiring and retaining talented and skilled workforce 4. Enhancing the financial performance of the business and 5. Building strong brand image amid the customers It can be said that each of the goals is important for the long term growth of the business. It is evident that the company’s core business operations has been its major problem since the 2006 and it has experience heavy decline in that regard. The cash-cow film of the business has seen an irreversible decline in the year 2004 which had further impacted the entire business performance. Contextually, in order to ensure overall business improvement it will be vital to determine goal related with core business operations for improving its poor business performance and raise the level of its competency. It has also been lack of product diversification has been one of the major weaknesses of the business in the recent times owing to which the overall business has faced setback. The company determining objective of attaining product diversification and promoting innovation will facilitate it to expand its business to untapped market and take the advantages of new evolving technologies to meet the demand of customer in the cloud computing industry. Again the success of any business is largely dependent on the skills and the level of competency possess by the workforce who are responsible for executing the entire operation of the business. Thus hiring and retaining pool of qualified and talented workforce will ensure smooth functioning of the business as well as it will offer the company with increased competitive advantages in the cloud computing industry (Hill & Jones, 2012). Notably, poor financial performance in almost every operational domain is among the major challenges for the operations of Kodak over the years. Establishing goals that would aid in improving its financial performance will undoubtedly facilitate it to overcome the challenges of steadily declining profitability. In the recent time many companies have emerge with strong brand within the cloud service industry. Thus building strong brand will enable the company to gain increased goodwill across the global cloud service industry as well as attain greater competitive traction (Hill & Jones, 2012). 3. Analysis of Horizontal and Vertical Integration Strategy of Kodak In order to gain competitive advantages in the overall cloud computing industry, the company will need to transform its strategies to a considerable extent. Notably, in the current scenario Kodak is implementing the horizontal and vertical integration in its operations. Through vertical integration approach the company aligns its ability to ensure high class images as well as information to products that enhance the communication experience of the business. Again through this particular approach the company also extends its operations in its present domain which can be justified from its increasing control over the existing chemical based imaging business. Through this particular approach the company stress towards enhancing the productivity as well as cost reduction in the present business structure to improve business operations. On the other hand, through the horizontal integration approach the company expands its business and market share through acquiring other small companies. Notably, the company acquired Fox photo Inc. in the year 1986 to become the leader in the photograph finisher market. The company also enhanced its market share in the copier market through acquisition of Verbatim. This aspect helped the company to emerge as market leader in the imaging and photography industry. From these strategies, it can be determined that the approach of market expansion of the company through acquisition and market expansion enhanced its image and market presence quite rapidly in the global circuit (Hill & Jones, 2012). Contextually, this is one of those corporate level strategies which can use to gain competitive advantages over that of other players. This determination can be justified from the rationale that expanding business enhances the market presence as well as the market share of the company which further puts the business a step further in comparison to the competitors and enable to have an upper edge over the same. This is also a value increasing corporate level strategy where business units surpass its competitors in rivalry. 4. Five ways in which Pursuing a Multi-Business Model Based on Diversification May Increase Profitability for the Company In order to strengthen the hold in the global cloud service industry, companies need to switch from single business model to multi business model to serve a wider customers base. With the use of multi business in the domain of diversification Kodak could be able to enhance its profitability which is one of its major challenges in the recent times. With the involvement of Kodak in multi-business model, the company could bale to leverage its operational resources in similar business units which further reduce the operational cost. Since, the management of Kodak is involved in cost cutting measures to reduce its operational cost, this measure will be crucial. Involving in multi-business model, Kodak will also be able to use and share resources in its operations which can be expected to boost the business profitability. Again since Multi-business model also provide utmost growth opportunities for businesses, its impact will be positive on the overall profitability. Multi-business operational model will also enhance the presence of the company worldwide and develop its brand image which is again a notable factor for profitability growth (Müller-Stewens & Knoll, 2008). Additionally, through multi-business model Kodak will also be able to serve a wider customer base which is again a potential positive for overall business profitability (Kruhler, 2012). For example, with the use of multi-business model Toyota Financial Services has been able to capture a larger customer base and ensured utmost business expansion (Leasing, 2013). Correspondingly, Google is also among the company that has exceled in business expansion and profitability augmentation through adopting multi-business model (Sage, n.d.). 5. Recommendation for Implementing Strategy Based on the present organizational design, strategic control systems, structure, and organizational culture it can be recommended to Kodak that it will need to expand in business operations both with product diversification and strategic alliance which are also among its key approaches in the past success stories. Since, the company has the history of sticking to a single operational culture and management design including both horizontal and vertical integration; it should seek to strengthen and apply its past competencies to the next level with which the company has gained immense success in the past. With the product diversification strategy, the company would be able to meet the changing demands of the present day customers. Additionally, with proper expansion strategy the company will be able to augment its market share which is again important for enhancing brand value and competitive advantage. 6. Alignment of Corporate-Level Strategy and the Implementation Strategy and Its impact on Corporate Social Responsibility Market expansion through strategic alliance and product different differentiation will enable the business of Kodak both in the criteria of increasing competition and changing customer demands. However, the business ethics of the organization will have significant impact on the implementation of the recommended strategies. Since the prevailing organization culture of Kodak involves extreme stubbornness, the aspect of innovation is hindered up to a larger extent. Hence, attaining utmost level of product diversification through the deliverance of innovative products is likely to be attained. At the same time, the appreciative image of the company in the domain of corporate social responsibility (CSR) will enable it to move into unexplored markets with ease through strategic alliance, acquisition. 7. Conclusion From the overall analysis of the paper, it can be concluded that in order to attain long term sustainability in the global market, companies has the need to enhance and upgrade its operational approaches on a continuous basis. They also have the need to implement strategies that ensures organizational growth. Contextually, case scenario of Kodak and its rise and fall in global market has been comprehensively stated in the report has provided significant understanding regarding the importance of corporate level strategy in the current business environment. References Fairleigh Dickinson University. (2014). HR’s role in building a sustainable enterprise: insights from some of the world’s best companies. Retrieved from http://view.fdu.edu/files/hrrolesustpaper.pdf Hill, C., & Jones, J. (2012). Strategic management: an integrated approach. Cengage Learning. Kruhler, M., 2012. Managing business portfolios effectively: on the explanatory power of the parenting advantage concept. UK: Springer. Leasing, F. (2013). Toyota Financial Services: moving into multi-brand funding. Retrieved from http://www.fleetnews.co.uk/special-report/2013/6/28/toyota-financial-services-moving-into-multi-brand-funding/47583/ Müller-Stewens, G., & Knoll, S. (2008). Cross-business synergies: a typology of cross-business synergies and a mid-range theory of continuous growth synergy realization. UK: Springer. Sage. (n.d.). Business unit strategies. Retrieved from http://www.sagepub.com/upm-data/54278_Chapter_7.pdf Read More