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Strategies of Kodak

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Eastman Kodak once dominated the consumer photographic market, but has recently lost some market share to Fuji film in photographic supplies, and to Polaroid in instant cameras. The high rate of usage of 35mm cameras also meant a loss of market share as consumers moved away from Kodak's flagship instamatic cameras and to the higher quality (but now easier to use) reflex cameras. This research considers the current strategies in place at Kodak, the competitive environment in which the company operates, and evaluates alternatives the company might follow in coming years in order to ensure its success.

Kodak develops, manufactures and markets consumer and commercial imaging products. The consumer imaging products are used for capturing, recording or displaying a consumer originated image. For example, traditional amateur photography requires, at a minimum, a camera, film and photofinishing. Photofinishing, in turn, requires equipment and supplies, including chemicals and paper for prints.

Kodak manufactures and markets various components of these imaging systems. For amateur photography, Kodak supplies films, photographic papers, processing services, photographic chemicals, cameras and projectors. Recent imaging products developed by Kodak include new generations of films, cameras, photographic papers and single-use (disposable) cameras.

. . .
pite the strong performance of the single-use camera, and earnings have decreased at the rate of 1.5 percent per year. These poor financial results are due in part to the maturity of the industry, but also to the volatility of the dollar, which is a problem which any multinational company faces. Recently, the dollar has gained strength overseas, which makes Kodak's products more expensive overseas and thus less competitive. This, in turn, hurts the company's performance. While the company is not in any immediate danger, its poor financial performance indicates that it needs to pay particular attention to new markets and to returning to profitability in the markets where it currently operates. Environmental Analysis The single use camera came on the market in 1987 when a basic model was introduced by Fuji Photo. Since that time, disposables have been added with flashes, telephoto and wide angle lenses, and even underwater versions; all of these sell for typically for under $13. During 1988 (the first full year that the camera was marketed), unit sales totaled 3 million; by 1992, unit sales topped 21 million, and increased to more than 32 million in 1993. Clearly this represents a strong and significant market for particip
. . .

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Approximate Word count = 1820
Approximate Pages = 7 (250 words per page)

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