eastman kodak company jessica lo calvin ng yvette olmos tiffany taubodo tuan tieu julie xiong
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Eastman Kodak Company
Jessica Lo
Calvin Ng
Yvette Olmos
Tiffany Taubodo
Tuan Tieu
Julie Xiong
Kodak’s History
• The history of Kodak began in 1879
• George Eastman
• Henry A. Strong
• The world’s first Kodak camera was born in 1888
• “You press the button, we do the rest.”
• “Share moments. Share life.”
Company Name Chronology
• Eastman Dry Plate Company (1881)
• Eastman Dry Plate Film Company (1884)
• Eastman Company (1889)
• Eastman Kodak Company of New York (1892)
• Eastman Kodak Company of New Jersey (1901)
George Eastman’s Four Basic Business Principles
• Mass production at low cost
• International distribution
• Extensive advertising
• Focus on the customer
George Eastman’s Three Additional Policies
• Foster growth and development through continuing research
• Treat employees fairly and with respect
• Reinvest profits to build and extend the business
Financial Highlights
2002• Net sales= $12,835 million
• Stock price per share at year end= $35.04
• Net earnings= $770 million
• Shareholders at end of year= 89,988 million
2003• Net sales= $13,317 million
• Stock price per share at year end= $25.67
• Net earnings= $265 million
• Shareholders at end of year= 85,712 million
Financial Highlights 2003
• Net sales increased by a tad bit
• Net earnings decreased significantly
• Stock prices dropped
• Shareholders disappeared
• Less employees in U.S and worldwide
Kodak’s Stock Price
• As of 4/17/04, Kodak is selling their stocks at $25.35 per share
• From previous close of the stock price, it rose $0.40 cents.
Today’s Competitors
• Sony, Olympus, and Canon are all leaders of the digital cameras
• Kodak falls short at fourth place
• Kodak holds 14% of the market share
Nikon10%
Olympus18%
Kodak14%
Canon16%
Sony19%
Others23%
Single-Use Cameras
• Kodak dominated the market share when the single-use 35mm cameras were still around in 2001
• Sony held 51% of the market share
Concord4%
Kodak51%
Jazz10%
Others3%
Fuji32%
International Service Locations
• All of the Americas Region, the Latin America Region, Japan, the European Region, the Greater Asia Region, and the Middle East and Africa
• Within these regions, Kodak exists all in the major cities
U.S. Major Headquarters• The four major headquarters in the U.S. Are located in
-Windsor, Colorado
-Atlanta, Georgia
-Oakdale, Minnesota
-Toronto, Ontario
Purchasing & Suppliers
• Keykode equipment and software itself holds at least twenty-six suppliers from all over the world
• Kodak purchases 3 main material
1. Imaging material manufacturing
– chemicals, fuel and energy, and packaging supply
2. Equipment manufacturing
– circuit boards, plastics and electronic components
3. Non Manufacturing goods and services
– advertising, IT services, and travel/fleet
Kodak’s IT Department
• Electronic Retrieval Workstations• Kodak i7300 Scanner• 2400 and 3000 DSV digital scanner/printer
• IBM– Directly buying from IBM– Standardizing all hardware and installing a set of
preinstalled software on all PCs• reduces on-site problem solving• saves $200 per person by help desk
Porter’s Competitive Forces Model
• Market leader in traditional film
• Main focus in manufacturing digital cameras and photo processing services
• Imaging Industry
• Entry barriers
Porter’s Competitive Forces Model Continue
• Industry Demand for digital imaging equipment and services
• Bargaining powers of buyers
• Substitutes
• Existing Competitor Threats
SWOT Analysis
• Internal Strengths
• Internal Weaknesses
• External Opportunities
• External Threats
Kodak’s Internal Strengths
• Kodak Brand Name
– Biggest Strength
– “Kodak moment”
• Kodak Image
– Environmentally & socially conscientious
• Website
– Great detail of product features & uses
Kodak’s Internal Weaknesses
• No E-Commerce
• Being Innovative with IT
• Acquiring without profitability
– Expanding just for the sake of growth
• Product offering
– Need to narrow their focus
External opportunities• Camera phones
– Kiosks
• Cinema – Investment
• Multi-Cultural marketing
• Health care– Expansion
External Threats• Competitors
– Sony– Canon– Olympus
• Distinctive Industries– Healthcare– Professional and consumer photography– Government– Cinematography– Docking and imaging
SWOT Analysis Conclusion
• Based on the SWOT analysis, Kodak may improve by
– Investing in selective industries
– Improvements in products and services
– Brand name recognition in digital industry
– Innovation
Competitive Position
• Cost Leadership
– Producing products and services at a low cost
– Supplying photography tools to a large number of people
– Maintaining a cost advantage over competitors
• Differentiation
• Growth
Differentiation Strategy
• Infoimaging
– Form of technology that uses image science and IT
– Tool for developing new products and services
– Improves communication and commerce
– $385B industry
Differentiation Strategy cont.• Industry Expansion
– Consumer and Professional Photography
– Health, Entertainment, Printing, Publishing
– Document Imaging
• Investment in Research & Development
– Product Development
– Technology Research
– Imaging Research
Growth Strategy• Switching from traditional film to digital
• Entering new markets
• Earnings Growth– Increase Profits and Productivity– Cutting Costs and Dividends
• Acquisitions– $2-3B acquisition strategy– Acquired at least six leading companies in several
industries
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