Eastman Kodak is currently operating in a mature industry environment that arguably demonstrates elements of an embryonic and growth industry. Although Kodak remains the top manufacturer of photographic film (Fuji Photo Film is its closest competitor), in recent years the company's industry environment has been significantly impacted by the growth of digital camera and imaging technology (Hoover's). Notably, embryonic industries emerge when a technological innovation creates new product or market opportunities. This is precisely what has happened in the case of digital imaging technology in the photographic film industry environment. However, digital imaging technology has reached a mass market stage and Kodak has had to adjust its management strategies to target this new market. On the other hand, Kodak's industry environment is a mature industry because its industry is dominated by a small number of large companies and it is essentially reacting to competitive moves by its strategic rivals (204).
Despite its strength in the photographic film market, Kodak is in many ways practicing the competitive strategy of a new entrant to a mature industry. The digital imaging industry is dominated by big, entrenched competitors such as Hewlett-Packard, Canon, and Seiko Epson ("Kodak to Announce Shift," 1). In doing so, it is trying to manage the five forces of industry competition. First, Kodak is employing both creative channels of distribution and exploiting relationships with suppliers. Kodak is aligning itself with companies that supply complementary products, such as cell phone operators, so it can offer online photo services and printing capabilities at kiosks (Hoover's). Kodak has also allied with software companies in the medical imaging field for use of digital technologies in those markets (Hoover's). Second, Kodak addresses the threat of substitutes in the digital imaging market by pursuing the digital technology rather
...