The current performance of Eastman Kodak
Kodak declared its bankruptcy in 2012, and since that time, this company sold many of its divisions to other enterprises. Moreover, they had to transfer some of their patents because, in this way, they tried to repay their debts. Currently, this organization passes through a period of dramatic change. At present, Kodak delivers services and goods, mostly to commercial customers (Lilien & Grewal, 2012, p. 223). So, it can be described as a B2B company (Lilien & Grewal, 2012, p. 223). The products of the company are related to such areas as digital printing, TV production, or flexography. One can say that this enterprise provides its clients with advanced technologies that can give these businesses a competitive advantage over others. So, the current activities of Kodak are not oriented to the needs of consumer markets. These are some of the main aspects that should be considered.
In 2013, the net income of this corporation was $ 1, 99 billion dollars while its net losses were $155 million. Apart from that, this organization successfully implements the policy of cost reduction, and this task is critical for the sustainability of this organization. For instance, this business was able to cut its administrative costs from $148 million to $ 93 million (Kodak, 2013). This example is important for showing that the management of this corporation has become more efficient. Nevertheless, it is important to remember that the company has to spend capital on its restructuring after bankruptcy.
Overall, the main priority for the management of Kodak is to retain and attract clients. Moreover, this enterprise is vulnerable to fluctuations in demand. Furthermore, bankruptcy made many people unwilling to support this enterprise. These are some of the factors that hinder the performance of Kodak.
The closest competitors of Kodak
There are several important competitors that can create significant challenges for Kodak. For instance, one can mention Canon that manufactures computer printers and photocopiers that can be used by commercial clients (Hill & Jones, 2008, p. 497). So, this corporation can erode the market share of Kodak. For instance, Canon produces wide format printers that are purchased primarily by organizations, rather than individuals (Hill & Jones, 2008, p. 497). Additionally, one can speak about scanners because such products are often purchased by enterprises. These products are usually less expensive that the technological solutions developed Kodak.
The main difference is that Kodak is much more focused on the needs of corporate clients; therefore, it can better meet the needs of these enterprises. As a rule, these organizations want to use technologies that can improve their operational and financial performance. However, Canon has financial resources in order to win a price competition (Hill & Jones, 2008, p. 497). This is one of the details that should be taken into account by senior executives since it is important for developing the most effective policies.
Moreover, much attention should be paid to Fujifilm. This corporation provides such products as photofinishing equipment, photocopiers, color paper, and other technological solutions that can be used by businesses. Fujifilm is one of the businesses that contributed to the decline of Kodak. So, the management of Kodak should be aware of the threats that his competitor can pose. However, Fujifilm does not position itself a B2B company. Unlike Kodak, it does not try to develop some sophisticated products that are oriented toward the activities of businesses. This is one of the distinctions that should be considered by the senior management of Kodak. So, one should not suppose that Kodak is not able to operate in the markets dominated by corporations like Fuji.
Finally, it is important to remember about Hewlett-Packard. This corporation manufactures a wide range of inkjets and laser printers that can be used by businesses, especially those one that work with a great number of documents. Moreover, one should pay attention to such a product as Officejet. These technological solutions can print, scan, and fax documents (Price, 2004, p. 112). Furthermore, one should mention that there are other corporations that sell similar products. These technologies can be purchased by a wide range of businesses. This is one of the details that should be considered.
This discussion shows that Kodak should be aware of the strategies adopted by their competitors. These organizations occupy a prominent place in mass consumer markets, while Kodak is able to consider the needs of these businesses and their competitive environment. Moreover, Kodak is a company that attaches importance to R&D, and it is famous for its innovative products. Certainly, this organization cannot win a price competition, but it can retain its competitive positions by offering breakthrough products to clients. However, Kodak can remain sustainable in this competitive environment, if it remains cost-efficient. Secondly, they need to develop an effective marketing campaign. This is the main tasks that should be the top priority for the senior executives. It should kept in mind that the absence of clear marketing strategies is one of the reasons why this business failed in the past (Lynch, 2009, p. 133). Despite financial difficulties faced by Kodak, this organization can survive in this competitive environment.
Strategic vision
These questions discussed in the previous sections can be used for developing a strategic vision of Kodak. In particular, this organization should try to become a leading manufacturer of digital printing technologies which are designed primarily for commercial clients. Moreover, this company should become the main innovator that can successfully market its products. These are the main objectives that Kodak should achieve in the future. If they can cope with this task, they can eventually overcome their financial difficulties and become profitable. This is one of the points that can be made.
Certainly, there are some possible alternatives to this strategic vision. For example, this business may try to enter mass consumer markets. However, this goal can be attained only if Kodak offers products at a low cost. Moreover, this strategy will not enable Kodak to distinguish itself among its competitors such as Canon or Fujifilm. So, in the long term, it can be ruinous. This is one of the main arguments that can be put forward. Additionally, at present, this business cannot introduce new products very often. Nevertheless, this business should achieve cost-efficiency by reducing operational costs. On the whole, this enterprise should avoid the pitfalls that contributed to its downfall in the past. For example, the lack of well-developed marketing strategies is one of such flaws.
At present, Kodak undergoes dramatic changes in order to respond to financial difficulties. The proposed strategic vision is based on the main strengths of this corporation. Moreover, this vision can enable this vision to avoid mistakes that they made in the past. These are the main benefits of this strategy.
Reference List
Hill, C., & Jones, G. (2008). Strategic Management: An Integrated Approach. New York, NY: Cengage Learning. Web.
Kodak. (2013). Kodak Shows Continuing Improvement in Third Quarter Results. Web.
Lilien, G., & Grewal, R. (2012). Handbook on Business to Business Marketing. New York, NY: Edward Elgar Publishing. Web.
Lynch, G. (2009). Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management. New York, NY: John Wiley and Sons. Web.
Price, C. (2004). Use Business Technology. New York, NY: Max Johnson. Web.