During a period of rapid development of imaging technologies Eastman Kodak failed to acquire important patents to widen its product portfolio and for many of these new products return on capital fell way below cost of capital. Divestments followed and under new management Eastman Kodak focused again on the picture business. The new area of digital photography faced Eastman Kodak with many more competitors then the traditional camera and film business. Eastman Kodak Today Today, Eastman Kodak is no product champion in the consumer sector anymore like in its silver-halide photography times where it was a pioneer.
Through a wide-ranging distribution presence and a good financial management Eastman Kodak? s brand name reputation is still superior but the rise of potential competitors and the rivalry among established companies within industry is immense and still increasing. Kodak Eastman? s strategy changes from many product lines in different markets to a strategy basically focused on the medical, commercial and government market comes to fruition. These are secure markets for Kodak because of the need for long-term-technology for planning military campaigns, weather forecasting and medical imaging.
In addition, bargaining power of buyers is more present in the alternating consumer market and the risk of new entry by potential competitors is limited. Kodak still has research and development and marketing innovations for the consumer market and can use parts of his innovations from the professional markets, but it has to share the field with many other well established companies like Sony, Canon, Fuji and Olympus. Strategic alliances with Intel, Hewlett-Packard and AOL formed under Georg Fischer improved the worldwide distribution network and added value to its own research and development department.
The Term Paper on New Product Development
New Product Development Here are the main stages that guarantee positive results of new product development in case the group of researchers will follow all steps: Problem Acknowledgement (scheduled process; market changes and fluctuations; changes in technology; new distribution channels; changes in the model of consumption); Desired Characteristics of New Product (vision; mission; objective; ...
Recommendations The Eastman Kodak strategic management should stabilize relationships and distribution networks for the commercial, health and government sector. In that sector is the incremental approach idea from George Fischer realizable and Kodak can improve its key technologies CCD sensors, OLED screens and color management systems for the commercial market. Especially the color management system research has potential to obtain a better position in the consumer market when Kodak can provide this technology to other camera developers. The consumer market is turbulent for Eastman Kodak.
Its digital camera portfolio contains only low to mid-price cameras. Kodak should also offer cameras for professional photographs and reduce its portfolio for low and mid-cost “Easyshare” cameras from twenty-five down to a number which is not so confusing for the customer. These strategy corrections are essential to hold the actual market-position in that highly competitive area. To expand its market-position in the consumer market Kodak should focus on its core competencies like online photofinishing in Asian countries and photographic paper.
