A New Strategy for Kodak - Assignment Example

A New Strategy for Kodak In the 1900s, the Kodak Company was ruled as one of the most popular and successful business brands in the world. Its Yellow brand color was popular in most nations on the globe and when anything to do with photography was mentioned, Kodak was the thing that crossed everyone’s mind. The reasons behind its success included the production of its products and services in mass quantity while minimizing the production costs, being unique by developing its technologies, intensive and effective advertising, and its ability to target the world market in general. The fall of Kodak began around the 1970s. The emergence of new (digital) imaging technologies and entrance of more competitors in the photography sector saw the giant enterprise experience decreasing sales thus less profits and slow growth (Jones, 2011). This down fall led to the emergence of the debate as to whether Kodak could regain its position in the imaging industry, or whether it would diminish until it vanished at the start of the 21st century. The following study text discusses the implementable new strategies for Kodak which would not only revive its stance in the imaging industry, but also help it advance its business model to match the new era and the demands of cloud services. In integrating the Kodak Company into the cloud service industry, thus striving to retain its dominance in the imaging sector, Kodak requires several objectives. The first objective is to align all its segments to match with digital imaging, which is the key determinant of business in the 21st century. This means that its licenses, products and services should match the acceptable standards of digital imaging. The second objective would be training its employees and all involved partners in production to adapt to new technologies of production so as to match the demands of cloud services. The third objective is to come up with data and financial systems which are accurate and reliable since data and financial control are a necessity in cloud services. Fourth, Kodak should partner with an established cloud enterprise which can overly advertise the reformed Kodak in the cloud community. Finally, Kodak should acquire flexibility when it comes to cloud services in that it has to customize its services depending on some specific target market segments. In so doing, it is bound to attract more clients by satisfying needs specific to particular segments. Kodak can establish competitive advantages by integrating both vertically and horizontally in the cloud service industry. Horizontally, it can integrate by combining its business with other related businesses processes or models in the imaging sector. By so doing, it will be able to catch larger market shares, lower its production costs by producing in mass-scale, and finally eliminate its competitors. Vertical integration can apply in that Kodak can combine its business with other unrelated businesses such as those offering cloud services like marketing and let them handle some of its objective strategies. By spreading its roles to its different constituent entities, Kodak can have better execution of roles and less management responsibilities (Newlands & Hooper, 2009). At the corporate level, Kodak could seemingly gain more by implementing a vertical integration strategy in its business model. This means that it may focus on researching and developing its offerings while other external entities can focus on other factors such as the financial, marketing, and customer relation factors. The determining rationale will emerge from the strategy that Kodak will choose to implement. If it chooses to internalize all its business aspects, it may perfect on production and lose out on others such as marketing. However, if it outsources its strategies so that more entities are involved, its chances of soaring high again will be raised. The other strategy applicable by Kodak in seeking increased profitability is by pursuing a diversified multi-business model. In a multi-business model, there are several channels for profit observation. The first is that in diversification, two or more diverse companies merge and contribute to come up with unique products or services. This beats competition. Secondly, the diversification means that the involved companies merge and share the customers. Therefore, there is an increase in the market share for both. In application, this means that if Kodak works with say, Samsung to integrate each other’s expertise in coming up with a unique camera phone, Samsung will acquire a customer share from Kodak while the same happens to Kodak. That means an increase in sales and therefore, a positive implication in profitability. Thirdly, by coming up with unique offerings, the diversified multi-business model enables the involved companies to wipe out minor (individual) competitors by being unique, cheaper, or more popular. Fourth, in diversification, the companies share their organization-specific knowledge and as such, each party learns something extra from the other, and can apply it in its business endeavors. For instance, Kodak can team up with LG so that LG can share its device manufacturing expertise with Kodak. Kodak would in turn share its imaging knowledge with LG and together they come up with a unique digital imaging camera. The final way of profitability through diversification is that there is sharing of risks and costs. This means that in the event that a loss occurs, it will be shared by the two companies and that would not affect the profitability as compared to individual cases (Hill & Jones, 2010).  In its newest cloud service industry, Eastman Kodak requires an umbrella strategy to cover all its entities so that its production fits its new industry while maximizing on profits and growth. First, the organization should be structured in a way that the managers come up with decisions and influences which determine how the production processes proceed. In short, the managers should determine which strategies best fit the objectives earlier discuss with regards to cloud services and spread them throughout the entire workforce. There should however be coordination amongst the constituent segments or departments so that the tasks can be shared accordingly and implemented easily. The data and financial systems in place should be very accurate and reliable since data and financial control are a necessity in cloud services. If this is considered, upgrading to cloud services industry will be effective. The organizational culture should also be restructured to alter Kodak’s way of conducting business. Since cloud services are a new leaf to Kodak, training and/or replacing the current top managers with more “technological” ones seems like a potential solution to amending its organizational cultures to adapt to the new cloud services industry for Kodak. The above implementation strategy relates to the corporate-level strategy of diversification in that both support the ethical aspect of behaviors within Kodak. Corporate social responsibility first of all determines the reputation, thus acceptability of Kodak in the consumer fraternity. A Company with good CSR is bound to run much easily, thus be more profitable (Swanson & Fisher, 2008). This includes a responsibility to both stakeholders and shareholders. Business ethics would highly determine the implementation of the proposed strategies. For example, if Kodak’s organizational cultures resist, rather than reason with change, then implementing the said strategies would be difficult or impossible. This would also hamper the implementation of diversification (multi-business model). The final aspect, environmental sustainability is similar to CSR and business ethics. This is so because the manner in which Kodak will show concern for the environment, or handle its surrounding environment determines its reputation with all parties involved including clients. As such, being fluent in environmental sustainability would determine diversification since acceptability will be determined by factors like these. Generally, it is sufficient to state that the manner of handling ethics determines Kodak’s success with implementing its strategies; if it is fluent, then its chances of success are raised. References Hill, C., & Jones, G. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin. Jones, G. (2011). “The Rise and Fall of Eastman Kodak: Will It Survive Beyond 2012?” Case 28. 375-89. Newlands, D., & Hooper, M. (2009). The global business handbook: The eight dimensions of international management. Farnham, Surrey, England: Gower. Swanson, D., & Fisher, D. (2008). Advancing business ethics education. Charlotte, NC: IAP. Read More