DIFFERENCE IN DISTRIBUTION

• In US manufacturers sold directly to retailers & photofinishers

• In Japan distributors acted as intermediaries

• Fuji had strong ties 4 main distributors Asanuma, Misuzu, Kashimura and Ohmiya

• Whereas Kodak had only 1 distributor – Nagase

• Kodak claimed that the tie up of fuji with major distributors prevented other brands entry

DISTRIBUTION STRATEGY

Kodak

Nagase

Secondary Wholesalers

Tertiary Wholesalers

Small Retailers Camera Stores

Large Retailers

Fujifilm

Asanuma

Secondary Wholesalers

Tertiary Wholesalers

Camera Stores

Camera Stores

Small Retailers

Misuzu Kashimura

Large Reatilers

Ohmiya

Large Retailers

• Fuji products were sold through 216000 retail outlets

• 15% of them gave 75% of the total sales.

• Fuji owned a controlling interest in 3 of the 5 major wholesalers

• In response kodak bought Ksuda Business Machines a local distrubutor there