BUSI 0000 Presentation Analysis of business strategies and recommendations for its success Group XXX

BUSI 0000 PresentationAnalysis of business strategies and recommendations for its success

Group XXX

Outline

• History & Background• External Environment• Internal Organization

Strategic InputsA

• Business & Corporate level Strategies

• Acquisitions and Restructuring• International Strategy

Formulation of Strategic ActionsB

• Take Advantage of Its Strengths• Follow the Industry Trend• Learn from Its Past Failure

RecommendationsC

2

History and Background

• Established in 1888 by George Eastman in Rochester, New York

• Invented world’s first simple film camera, first digital camera

• (Kodak picture)

3

History and Background

• Field for voluntary petitions for Chapter 11 in 2012

• Just emerged from bankruptcy, and relisted on NYSE November 2013 onwards

• Exited consumer business and focus on business and commercial printing

4

General Environment

• Technological– Fast changes in technology

5

External Environment: Past

Competitive Rivalry

Low

Bargaining Power of Buyers

Low

Bargaining Power of Suppliers

Low

Threat of Substitutes

Low

Threat of New EntrantsLow to

moderate

6


• Rivalry among competing firms– Low– Only few major players in the market

• Threat of substitutes – Low – At that time there were few alternatives to

the film camera

• Threat of new entrants– Low to moderate– High entry barriers due to high R&D costs

7


• Bargaining power of suppliers– Low– Kodak was vertically integrated, supplied its own

materials in many areas

• Bargaining power of buyers– Low– Few alternatives to the film camera so the

buyers did not have much say

Film business was appealing

8


Competitive Rivalry

Moderate to high

Bargaining Power of BuyersHigh

Bargaining Power of Suppliers

High

Threat of Substitutes

High

Threat of New Entrants

Low

9

External Environment: Present

• Rivalry among competing firms– Moderate to high – Many players in the industry

• Threat of substitutes – High– Switching costs are relatively low

• Threat of new entrants– Low – Low entry barriers

10

External Environment: Present

• Bargaining power of suppliers– High– Many other companies as alternatives

• Bargaining power of buyers– High– Many other companies as alternatives

Commercial printing business is a tough business to be in

11

External Environment

• Competitor analysis

Present

Commercial Printing Companies

Film Manufacturers

Past

• Japanese company• Manufactured film

(high market commonality)

• Entered the U.S. in 1980s with lower price

• Others: AGFA, Konica

• RR Donnelley & Quad/Graphics Inc. occupy the greatest market share

• Fuji Xerox and Canon, HP

12

Internal Organization

• Main reason for the past failure- Complacency culture led the failure to

recognize the transition to digital age

• Current- Strong R&D and exclusive patents

13

Outline


Strategic InputsA





RecommendationsC

14

Business Level Strategy

Integrated Cost-leadership with differentiation

Broad differentiatio

n

Focused differentiatio

n strategy

BeginningIntroducing digital cameras

Current business in commercial printing industry

15

Corporate Level Strategy

Present

Dominant Business Diversification

Related Diversification

Past

Over-diversified Moved from B2C to B2B

Linkage was been weakened, not muck value and competency was shared

Linkage still needs to be strengthened (?????)

16

Active Acquisitions

17

2000-2002

2003

2004

2005

2009

2011

lumisys, Inc., a leading provider of desktop computed radiography systems and x-ray film digitizers.Bell & Howell Company's imaging businessesOfoto,Inc., a leading online photography serviceEncad, focused exclusively on the wide-format inkjet printing industry

Kodak made several acquisitions including- PracticeWorks, Inc., a provider of dental practice management software;- 20% of lucky Film Co., ltd., the largest maker of photo film headquartered in China;- laser-Pacific Media Corporation, a provider of post-production services for filmmakers;- Algotec Systems ltd., developer of picture archiving and communications systems; - Applied Science Fiction's Digital PIC rapid film processing technology.

-Bought remaining shares of Chinon Industries, a digital camera manufacturer- Acquired The imaging sensor business of National Semiconductor, and formed an alliance with IBM to manufacture CMOS image sensors.

- OREX Computed Radiography ltd., a leading provider of compact computed radiography systems that digitally acquire x-ray images.- Former joint venture Kodak Polychrome Graphics -a leading supplier of products and services to the graphic communications market;- Creo Inc.- a premier supplier of prepress and workflow systems used by commercial2005 printers around the world.

The document scanner division of BÖWE BELL + HOWELL, a leading supplier of document scanners to value-added resellers, system integrators and end users

The relief plates business of Tokyo Ohka Kogyo Co., ltd., helping expand capabilities for flexographic/packaging markets.

Acquisitions Assessment

Consumer Photography Companies

Digital Printing Companies

• Success • More Details

Healthcare Imaging Companies

• Failure

18

Restructuring

Downsizing Downscoping

Short-term

Long-term

• Monetize some non-strategic properties• Reduce operation costs• Emphasize more on strategic controls over the

digital printing businesses

• leads Kodak to suffer from high risks

• a loss of human capital

International Strategy

International Corporate Level Strategy• Global

– Standardized products offered

International Business Level Strategy• Same as home market

20

Outline


Strategic InputsA





RecommendationsC

21

1) Take advantage of its strength

• Emphasize its history and root in the US- One of its main competitor Fuji Xerox has its focus

in

• Emphasis on printing on foil, plastic, glass, and metal- Pitch in the court to keep the business - Concentrate on niche market

Printing on glass has become a big trend in Japan and Europe; trend is moving towards North America

Sophisticated technology22

23

Recommendation

• Emphasize its history and root in the United States– Fuji Xerox, one of its competitors is focused in the Asia Pacific

region. Kodak can gain geographical advantage by focusing on North America market.

• Maintain remaining patents– Kodak has recently sold more than 1,000 patents to Apple and

Google to save itself from bankruptcy. The remaining patents have potential for Kodak to gain competitive advantage

• Emphasis on printing on foil, plastic, glass and metal– It has been noted by its pitch in the court for exiting

bankruptcy that Kodak holds competitive advantage in printing on special materials.

– In addition, there is an increase interest in glass printing – market available

01. Take advantage of strengths

2) Follow the industry trend

• Provide a platform for B2B file sharing- Allowing business clients to store their graphics and

freely transfer without security issues- Kodak can make use of its patent for managing assets

and metadata as well as displaying image on the screen- Increase demand in cloud file sharing

• Be aware of the 3D printing trend- 3D printer patents will expire in 2014- Not necessarily have to join the industry but should

prepare to adapt to the change if the change in trend is detected

24


• Opportunities from SMEs

Fuji Xe

ros

Canno

n

Ricoh

Koda

k

Other

8.2

54

0.8

6

Sales

Market ShareBig corporations’ situation

Already have

suppliers

High switching cost

Not much

differentiation

25



SMEs’ choices

Demand for new supplier

s

Not familiar with the market

Kodak is a big

name to them

Emerging SMEs

Emerging Markets

26



SMEs’ choices


s


Kodak is a big

name to them

Emerging SMEs

Emerging Markets

27



SMEs’ choices


s


Kodak is a big

name to them

Emerging SMEs

Emerging Markets

28



SMEs’ choices


s


Kodak is a big

name to them

Emerging SMEs

Emerging Markets

29

Great Opportunity for Kodak

3) Learn from its past mistakes

• Do not overdiversify – Unrelated diversification into healthcare

and biotechnology– Diversifies its risk, but also increases the

range of competition

30

Conclusion

• Take advantage of its strengths • Follow industry trends• Learn from its past mistakes

Kodak could shine again

31

32

Q & A

Documents

BUSI 0000 Presentation Analysis of business strategies and recommendations for its success Group XXX