Eastman Kodak in the Photography Business - Case Study Example

Kodak and Fujifilm business management strategies The History of Eastman Kodak and Fujifilm Eastman Kodak is popularly known as oneof the leading American company in digital imaging for a long period. The company who appears to have been the pioneer of photo imaging has been in the market since 1888. Kodak not only made photography technology simpler by just a press of a button, but, it also deals in imaging solutions, packaging and other professional services for business globally. The company has been best known to lead in the photographic film production for a number of years before it reported a financial crisis due to technological transformation from film imaging to digital imaging in 1972. Later, this organization went through successive struggle in the market until it was declared bankrupt the by the district court in the United States in mid 2013 giving room to a Japanese company, Fujifilm (Taylor, 1997). Although Kodak Company played a role top the invention of digital cameras, it also experienced stiff competition from the rival company Fujifilm who has succeeded in dominating markets internationally, especially in the United States. The history of Fujifilm can be traced back to 1932, where they started as photographic film manufacturers but later expanded into diversity of opportunities. Fujifilm as the pioneer of film photography in Japan has revolved from manufacture of simple images like motion film in 1940s to digital diagnostic X-ray imaging system in the year 2000. Besides, the organization has managed to come up with electronic internal care products and additional services like metabarier and oxibarrier nutritional supplements. The main point in this research is THESIS: to determine what management strategies has Fujifilm used to succeed Eastman Kodak from the photography business (Bird, 2005). Management comparison of Kodak and Fujifilm towards innovation To start with, Fujifilm company management believes in the adaptation and innovation of digital imaging and related products to achieve competitive advantage. This has been put in to practice by embracing a change in technological development and innovation of diversity for the future benefits of their clients. Under the leadership of Shigetaka Komori the CEO, Fujifilm is engaged in a variety of services, which include digital imaging and provision of healthcare services to modern electronic gadgets such as smart phones. The organization has consistently embraced the innovation of new products and services that are perceived to excite their clients towards a global competitive edge. The management structure of this organization has set up innovation department responsible of encouraging flexible attitude towards innovation based on the employees, original and latest technologies. Moreover, Fujifilm has introduced skincare products and pharmaceutical research amongst other services that has helped to improve its sustainability above the rival Kodak (Bird, 2005). On the other part, Kodak Company has never explored much about innovation. However, its innovative strategy has been based on three aspects of technologies; material science, deposition science and image science. In contrast to Fujifilm, whose innovation is more direct and inclined to the customers’ demands, Kodak’s material science focused on electric substances and materials such as robust inks used in all printing applications. Besides, the organization has also invested in deposition science where the innovation strategy specializes in the development of print engines to facilitate material design and printing of graphic applications. Eastman Kodak also considered image science as best to ensure that the information prints are secure while improving the image quality and data security (Taylor, 1997). Much more to management, it has been noted with concern that, several variations attributed to Fujifilm taking over Kodak company. Management differences and their impacted the relative success of Kodak and Fujifilm Considering similar management approaches between the two companies, it is very clear Kodak has suffered several financial problems against filmmaker Fujifilm. However, both companies have employed monopolistic form of management, which helped to dominate the market in their countries’ of origin for a long period. In addition, the two companies emphasized on supply of quality products as a way of ensuring health management and sustenance of their competitive edge. This has been done by ensuring that, the supplies of their commodities are of the right standard and quality. Kodak and Fujifilm engaged in export of their products to alternate countries by ensuring free trade tariff from each side put in place by signing of treaties. While Fujifilm considered inventing into other additional services such as cosmetics and skincare to enhance economic sustainability during financial crunch, Eastman Kodak ventured into market branding services as its market alternative to maintain its sustainability. In order to engage partisanship of the society, the issue of social responsibility was put at the forefront by any of the companies (Taylor, 1997). Approach to ethics and social responsibility For the above two companies, approach to ethics and social responsibility is valued for the sake of the business profitability. Targeting to give back to the society, their provision of products and services has been considered vital and the decision making process made flexible in order to ensure that all the stakeholders enjoy being partisan to the organization. With respect to Fujifilm, the organization has been engaged in production of quality services and products that are based on customers’ satisfactions and trust. Moreover, all their process of imaging production are inclined to culture, scientific innovation and their industrial products are free and friendly to both human and to the environment. The organization also operates in compliance to common sense and ethics by ensuring that all the activities they carry are socially friendly to the society and are not debating of any socially unacceptable behavior (Bird, 2005). Eastman Kodak on the other hand played its role in ethics and social responsibility by maintaining safe facilities and provision of products and services that are thus safe to the environment. Eastman Kodak has set standards to the suppliers by ensuring uniform conformity to the delivery of products and services. In addition to this, the organization has put in mechanism that ensures their workers are treated with a lot of dignity while preventing violence of any kind. In addition, the organization is engaged in employee’s assistance program that helps to educate the outgoing employees and leaders in recognition of domestic violence as none personal issue but a business issue, while putting into consideration to the changing market trends (Taylor, 1997). How management of Kodak and Fujifilm has adapted to changing market conditions The management of Kodak Company is characterized by complex procedures and slow rate of transformation towards the changing market conditions. Due to technological advancement, the management of Kodak was threatened by competition forcing it to reduce the level of productivity and lower the prices of its common products to maintain its competitiveness in the market. In order to meet the market demands, the organization introduced pocket-sized cameras, which were much selling as compared to the initial ones. However, this led to an increment to the production cost forcing an introduction of performance contract where the employees were paid based on the level of output they have contributed. Conclusively, the organization targeted high quality market products in order to win the government contracts but did not put into consideration the local consumers leading to escalation and loss of market price. These practices were very different from his competitor (Taylor, 1997). Fujifilm however, learnt to be viable by venturing into other additional activities besides photography. The organization discovered that, using the oxidation control, which help in avoiding the photos from creases could be to design the skin care creams necessary for the protection of the skin. With the introduction of digital photography, the management ventured in chemical production and manufacture of digital electronic gadgets such as smart phones and tablet processors to bridge the market deficit that was created. The organization also developed liquid crystal display television (LCD) sets and drugs for treating influenza as one of the ways to thrive through a competitive edge. The emphasis on complex procedures and introduction of small sized cameras did not prove much viable to Kodak company as compared to Fujifilm who diversified its earnings for the sustenance of competitiveness this has been based on flexibility to adapt the market changes (Bird, 2005). Company’s flexibility and decision making process Decision making process is a vital aspect in management because it should be flexible to adapt the changing market conditions to ensure that the organization achieves its objectives. Organizations can build flexibility based on several aspects of decision, but, some of the decisive flexibility amongst others include Transparency/openness The most important aspect of flexibility is the level of transparency of those engaged in the decision making process and how they introduce ideas. Although decision-making is always orchestrated by different objectives, people who make decision are lured towards the most common alternatives. It is therefore, advised that the decision process should embrace diverse sources of information both internally and externally before the actual resolution is made (Salaman, 2002). Recusivenes While most scholars have introduced the decision making process to have a predefined sequence, most of the organizations do not actually go through a complete sequence. This is because the process always requires consultation from different sources thus portrayed to assume a circular trend. As illustrated from the concept above, before making any decision process there should a value of actions before actual conclusion is made. Flexible decision making process is known to allow for identification of mistakes and adjustments for successful outcome (Salaman, 2002). Innovative approach Innovation is also considered as an important approach of flexibility to the decision making process. This is because its actions are considered to play an important role to the development of the future objectives of the organization. Analyzing the future prospects of the decision creates flexibility toward the decision-making process. Moreover, well-planed approaches often lead to brilliant decision. Therefore, decision makers must learn to identify problems involved during the process and seek for the permanent solution in case of any sudden problem (Salaman, 2002). Conclusion Eastman Kodak Company has been a leading company in the photography production for several decades, but lack of strategy to adopt technological transformation made it sell its repudiation to a Japanese company Fujifilm. In order to meet comparative market demand, Fujifilm management embraced diversified strategies such as venturing into cosmetics and chemical production. Through this research, there are adequate illustrations that Eastman Kodak did not accept change transformation. This why even after the introduction of digital photography, nothing much was done as compared to Fujifilm who has succeeded even to the development of electronic gadgets such as smart phones. More to this, we have seen how both companies practice the issue of ethics and social responsibility, where Fujifilm has put in place adequate measures in developing both drugs and skin care chemical that are environmental friendly. In conclusion, we prove that appropriate management strategy and good diversification plan has helped Fujifilm company to succeed Eastman Kodak in the photography business References: Bird, A. (2005). Encyclopedia of Japanese Business and Management. Rutledge. Taylor, D. (1997). Global cases in logistics and supply chain management. London [u.a.]: Thomson. Salaman, G. (2002). Decision making for business: a reader. London: Sage. Read More