Market Situation of Kodak-Camera Firm - Case Study Example

Kodak Introduction Kodak is a company based in the United States and carries out global business operations. It offers different types of imaging products as well as services. The company has been recognized as a leading organization in the development and production of new imaging products and services in the European markets and other global markets. It was founded by George Eastman who was highly interested in establishing improvements regarding cameras. Kodak Company is majorly involved in production of film products as well as dealing with digital photography together with printing (Reuters 2011). Market Situation of Kodak-Camera Firm Customer Context Analysis The customers for Kodak Company products are spread in many countries all over the world. The customers buy products such as cameras, sensors for images, frames designed for pictures, press equipments, digital photographic equipments, films, chemicals and papers used in photographic processing, scanners, and printers. They also receive services related to photographic work after which they pay the company for the provision of such services (Grant n.d). The customers are interested in buying the company’s products because the company has acquired good reputation over the years regarding to quality of products and services provided by the company. They prefer the company’s products and services due to the good image that the company has acquired. The customers’ demand for the company’s products and services has been increasing with time in the world market. The needs for the company customers include obtaining quality pictures and photographic videos, acquiring reliable printing equipments, and having availability of effective and efficient photographic related services. They need current photographic production systems that can promote the production of quality graphics and photography. Customers who buy the company products are not made of a single group of people. These customers range from old people to the young people but their biggest percentage consist of the youth who are highly interested with graphics and photography as compared to the older people. Some customers buy the company products for resale purposes and thus the company customers consist of wholesalers, retailers and the final consumers. Business Context Analysis The business in Kodak Company is done through the use of the current digital camera technologies and developments. The company has done away with traditional technologies which are unreliable and ineffective in terms of saving cost. The company’s business operations have been made effective and efficient through the use of completely automated production equipments that save time and reduce production as well as operational costs. This has made the company’s business to achieve the ability to satisfy customer needs. The business is focused on the changing characteristics of customers and this explains why the company changes the design of its products from time to time. The business is not only based on the interests of the owners but also the interests of the customers. Kodak Company’s business is large in that it is carried out in many countries all over the world. The business is not limited in the context of market coverage because it has gained power in the world markets. Many people who are engaged in the company’s business are spread all over the world. The business does not depend on a specified country for growth and development. It has been able to expand over the years due to the company’s performance in the market. The business of Kodak Company is a profitable business which generates the desired amounts of revenues. The profitability of the business has made the company to survive and remain competitive in the market. The future of Kodak Company is promising due the fact the company’s business is profitable and also relevant in the current world. The business is being suited by the current technological advancements and this increases the probability of the business to continue being carried out in the foreseeable future. Moreover, the business is carried out by qualified professionals who are authorized to carry out activities related with the company’s business. This ensures that unnecessary costs that are incurred due to the dependency on non-qualified professionals are effectively eliminated (Tokyo & Rochester 2011). The business of Kodak Company consists of a wide range of activities such as video production, the selling of imaging products and equipments, as well as provision of services related to photography. This has made the business to capture the attention of many people whose needs are met through the various activities of the business. Kodak Company business has the ability to simultaneously satisfy the different needs of different customers and thus increasing its chances of survival. The products and services that make up the business are needed by nearly all people living in the world today. It is relevant in making the life of people better and more enjoyable and this has made people to show support and admiration for the business (Tokyo & Rochester 2011). Internal Context Analysis Kodak Company has a well established mission statement which emphasizes on providing effective solutions to customers in regard to processing, capturing, storing, as well as communicating images. The company’s mission statement is founded on the customer needs (Hill & Jones 2010). One of the company’s goals is to produce and maintain the production of quality products within the company budgets. The company wants to develop and maintain brand equity regarding its products so as to remain competitive in the market. This is why the company produces quality products and services that can be identified and distinguished from the ones produced by the competitors. The company has well established values that guides the operations carried out in the company. The values are aimed at respecting the rights of all stakeholders that have any interest in the company such as employees and customers. The values directs the company towards increasing the value of its shareholders, ensuring company growth of the company, and also ensuring effective response to the various needs of the society as a whole. The key values that are observed by the company include respect, honesty, and trust. The company operates in line with the requirements of an organization that observes ethical behaviour. It ensures achievement of credibility by ensuring consistent delivery on the commitments it has regarding its customers (JLP 2005). Kodak Company supports growth and development through rewarding of admirable performance. It offers cheap and reliable means through which customer needs are effectively satisfied. The company undertakes the responsibility of seeing that its business operations agree with the ethical standards that have been developed for all organization operating in the same industry. Kodak ensures that all its operations are authorized by the law and thus no illegal operations are encouraged (JLP 2005). Kodak applies effective process in production of its products and services and this is facilitated by the current technological developments adopted by the company. This is a key strength for the company which has made it to gain a competitive advantage over the other players in the market. The management of the company has proved be effective because the right decisions are taken in response to certain changes regarding the company. The management team in charge of marketing department ensures that effective research is done so as to enable the production of products that suit the customer preferences (Grant n.d). External Context Analysis Kodak Company operates under a frequently changing environment due to external factors such as economic, legal, and technological changes. The current world markets are characterized by decrease and increase in prices due to fluctuations in the value of various currencies used in the exchange of goods and services. Most of the countries today have been reporting unfavourable economic conditions which have significant effects on the prices of goods and services in the world market. Kodak Company is exposed to market forces that are present in the markets in which the company’s products are sold. Such market forces majorly consists of competition pressure, which is brought about by other companies offering the same or similar products and services, and frequent changes in the demand and preferences of customers. All these forces expose Kodak to tensions that may affect the performance of the company’s business and thus reducing the amount of profits made by the company (Mendes n.d). Consumer needs are not always the same since they are influenced by several factors. It has been observed that when technology changes, consumer needs also change. This is because consumers always tend to demand for products that are supported by the advancements in technology. In the past, Kodak was forced to do away with traditional technologies and adopt the current digital technologies due to the advancements in technology. Adoption of new technologies by Kodak increased the company costs although in the long run, the company’s performance improved (Mendes n.d). The advanced technology has improved the company’s products and services which has in turn led to increased sales revenue. The company does not have the ability to control the external environment that surrounds it. The company applies strategies, such as early planning, which helps it in handling the challenges that are caused by the external forces. The government is considered as an independent body that has the power to control prices for products and services in the markets. Kodak is therefore exposed to laws that are made by the respective governments in countries in which the company has based its operations or sales its products and services. The laws which are proposed and implemented by the governments may sometimes favour Kodak Company and in other times, they may be unfavourable to the company. Kodak is always expected to adhere to the laws that are related to all the business that the company is engaged in. The company has been adhering to government laws so as to avoid law suits which may lead to reduction in profits due to expenses incurred in form of fines. Key Issues The key issues that are faced in the marketing communication industry and Kodak Company includes technological advancements, changes in consumer tastes and preferences, the information acquired by consumers, economic conditions, government restrictions, and competition in the market. These issues apply in nearly all the marketing situations regarding marketing communication industry and Kodak Company. The technological advancements are things that occur frequently due to the increased efforts that are made with an aim of improving the effectiveness and efficiency of operations as well as ensuring maximum satisfaction of consumer needs. Technological changes may have negative and positive impacts but in most cases, the positive impact outweighs the negative ones. In the marketing communication industry, consumers’ behaviour is not something that can be predicted with reliable levels of accuracy. The consumers’ decision to buy products is dependent on changing factors such as consumer tastes and preferences. The frequently changing consumer behaviour will remain to be an issue in the industry and the company. Marketing Communications Objectives for Kodak in the Coming Year The marketing communications objectives for Kodak Company for the coming year include the following: To establish the best strategies for dealing with uncertainties as well as external factors affecting the company. This will be accomplished through carrying out intensive and reliable researches. To introduce other products and services that will be in line with the current technological developments and thus satisfying customer needs better. To enter new markets whereby the company’s products have not been well recognized by customers dominating such markets. This will be done through effective advertisement campaigns which will be accompanied with physical demonstrations of the products thus boosting customer understanding on product features. To improve the quality of products which have not been achieving the desirable sales volume levels. This will increase sales revenue and promote a balanced company’s growth. To do away with outdated production processes and photographic equipments in the company. Conclusion Kodak Company has been performing well in the communication marketing industry despite the many challenges it has been facing. It employs strategic decision making approach which has made it successful. The company is expected to remain competitive in the future. References Grant, R. M. n.d. Eastman Kodak: Meeting the Digital Challenge. Retrieved December 10, 2011, from www.blackwellpublishing.com/grant/docs/06Kodak.pdf Hill, C. W., & Jones, G. R. 2010. Strategic management theory : an integrated approach. Boston: Houghton Mifflin. JLP. 2005, May 9. Eastman Kodak's (EK) Mission Statement. Retrieved December 9, 2011, from http://technorati.com/tag/mission-statement Mendes, G. n.d. What Went Wrong at Eastman Kodak? Retrieved december 9, 2011, from http://www.martinfrost.ws/htmlfiles/oct2011/What-Went-Wrong-At-Eastman-Kodak.pdf Reuters. 2011. Eastman Kodak Co (EK). Retrieved December 9, 2011, from http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=EK Tokyo, & Rochester. 2011, February 24. Konica Minolta and Kodak Sign Global Distribution Agreement; Combined Expertise Helps Customers Build Stronger Businesses. Retrieved December 9, 2011, from http://www.konicaminolta.com/about/releases/2011/0224_01_01.html Read More