Concepts of Strategic Management - Essay Example

The ease with which digital images could be downloaded and shared therefore provided a completely new dimension to growth in this segment of the business.

The higher level of adaptability by the consumers of digital imaging products therefore can offer new strategic choices to Kodak to further penetrate into its existing markets and also develop new markets with a special focus on emerging markets. In order to achieve such growth, it is important that Kodak must develop efficient distribution channels in order to increase its reach to customers. One of the key initiatives in this regard should be to develop an online distribution channel through the dedicated website selling digital imaging products to consumers directly. Historically, Kodak has relied on dealers and retailers to sell its products to the customers however, with increasing use of the web, Kodak can develop an efficient portal to develop a more efficient distribution channel.

In order to achieve this growth, Kodak can actually adapt different functional strategies including the development of a better sales management force as well as developing better online strategies. The online strategy of the firm should entail how the firm will actually develop its marketing strategy in order to improve the visibility of its products on the web besides increasing the exposure of its products through extensive personal and other selling techniques.

The directional strategies of the firm may include a market development strategy under which the firm could focus on emerging markets such as India and Brazil for the expansion of its markets. Since the overall trends in countries like China and India are changing due to the improvement in the purchasing power of the consumers therefore Kodak can actually target consumers in emerging markets. Another important strategic step to be taken b Kodak may include competing on the basis of factors such as innovation and price. By adopting creativity and innovation at the organization-wide level Kodak can actually compete by rolling out more innovative products in its existing markets. (David, 2004)

Kodak can outsource activities such as manufacturing of its products, software development for the products, etc. Outsourcing manufacturing activities to countries like China would allow Kodak to achieve the cost advantage whereas the software development process should be outsourced because it is not one of the core competencies of the firm.