Jiemarie D.

Paderes

1. Identify strategies used by the competitor and the company to survive. (fuji and Kodak)

Fujifilm strategies:

• Fujifilm diversified its business model, expanding beyond traditional film photography to digital
imaging, medical imaging, and other businesses. This strategy helped the company reduce its
dependence on the declining film photography market and diversify its revenue streams.
• Fujifilm invested heavily in research and development (R&D) to develop new technologies and
products. This strategy enabled the company to stay ahead of the competition and introduce
innovative products that met the evolving needs of consumers.
• Fujifilm pursued partnerships and collaborations with other companies to expand its reach and
capabilities. For example, the company partnered with Xerox to form a joint venture for
document solutions.

Kodak strategies:

• Kodak tried to adapt to the shift from traditional film photography to digital photography by
investing in digital cameras and printers. However, the company was late to the digital game, and
its products were not as competitive as those of its rivals.
• Kodak also tried to leverage its brand recognition and intellectual property to license its
technology to other companies, such as Samsung and LG. However, this strategy did not
generate enough revenue to offset the decline in Kodak's traditional film photography business.
• Kodak attempted to restructure its business, filing for bankruptcy in 2012 to reorganize its
operations and focus on its profitable businesses, such as commercial printing and packaging.
This strategy helped the company reduce its debt and focus on its core strengths, but it was not
enough to save the company from declining revenue and increased competition.

Overall, Fujifilm's strategy of diversifying its business model, investing in R&D, and pursuing partnerships
and collaborations helped the company stay ahead of the curve and adapt to changing industry trends.
In contrast, Kodak's attempts to adapt to digital photography were not as successful, and the company
ultimately had to file for bankruptcy to restructure its operations.

2. What was the cause of the downfall of kodak?

• Failure to adapt to the digital age: Kodak was slow to adapt to the digital photography
revolution, despite being one of the pioneers in digital imaging technology. The company's focus
on traditional film photography and reluctance to invest heavily in digital cameras and other
digital imaging products ultimately led to its decline.

• High costs and declining revenue: Kodak's traditional film photography business was expensive
to operate and maintain, with high production costs and declining demand from consumers. As a
result, the company struggled to generate enough revenue to cover its costs and remain
profitable.

• Increased competition: The rise of digital photography and the emergence of new competitors,
such as Apple and other mobile device manufacturers, disrupted the photography industry and
made it more difficult for Kodak to compete.

• Changing consumer preferences: The shift from traditional film photography to digital
photography and the rise of social media and online sharing platforms changed consumer
preferences and behaviors, leading to a decline in demand for Kodak's traditional film products.
 • Ineffective strategies: Kodak's attempts to adapt to the changing industry landscape and diversify
its business model were not as successful as its competitors, leading to continued financial
difficulties and a loss of market share.

Overall, the downfall of Kodak was a result of several factors, including its failure to adapt to the digital
age, declining revenue, increased competition, changing consumer preferences, and ineffective
strategies. These factors ultimately led to the company's bankruptcy and decline in the photography
industry.

3. What should they have done to survive?

To survive, Kodak could have taken several steps to adapt to the changing photography industry and
digital age. Some potential strategies that the company could have pursued include:

• Embrace digital technology earlier: Kodak was a pioneer in digital imaging technology, but the
company was slow to adopt it and failed to invest heavily in digital cameras and other digital
imaging products. To survive, Kodak should have embraced digital technology earlier and
invested more heavily in digital products.

• Diversify its business model: As demand for traditional film photography declined, Kodak could
have diversified its business model to include digital imaging, medical imaging, and other
industries. This would have allowed the company to reduce its dependence on the declining film
photography market and diversify its revenue streams.

• Cut costs and streamline operations: Kodak's traditional film photography business was
expensive to operate and maintain, with high production costs and declining demand from
consumers. To survive, the company should have cut costs and streamlined its operations to
reduce its expenses and increase efficiency.

• Focus on innovation: Kodak could have focused on innovation and developing new products and
technologies to meet the evolving needs of consumers. This would have enabled the company to
stay ahead of the competition and introduce innovative products that met the changing
demands of the market.

• Leverage its brand recognition and intellectual property: Kodak had strong brand recognition and
intellectual property, which could have been leveraged to license its technology to other
companies or generate revenue through partnerships and collaborations.

Overall, to survive, Kodak needed to adapt to the changing photography industry and digital age by
embracing digital technology, diversifying its business model, cutting costs, focusing on innovation, and
leveraging its brand recognition and intellectual property. Unfortunately, the company was unable to
successfully execute these strategies and ultimately filed for bankruptcy.

4. Using PESTEL analysis tool analyze the case and explain each factor.

Political:

Kodak had to deal with patent infringement lawsuits against Apple and Research In Motion (RIM)
regarding digital camera technology.
Government regulations and policies could affect Kodak's operations, especially in terms of
environmental regulations and intellectual property rights.
Economic:

Kodak faced financial difficulties due to increased competition and changing consumer preferences,
resulting in decreased revenue and profitability.
Economic downturns, currency fluctuations, and trade policies could also impact Kodak's financial
performance.

Social;

The rise of social media and digital photography shifted consumer preferences from traditional film
photography to digital photography.
The aging population and the decline of traditional photography enthusiasts also impacted Kodak's
business.

Technological:

The rapid advancement of digital photography technology made traditional film photography obsolete,
making it difficult for Kodak to compete.
The emergence of mobile devices with built-in cameras and photo editing software disrupted the
photography industry, making it easier for consumers to take and edit photos.

Environmental:

Kodak had to comply with environmental regulations related to waste disposal and chemical usage.
Consumers' growing environmental consciousness led to a decline in demand for traditional film
photography, which uses chemicals and produces waste.
Legal:

Kodak faced patent infringement lawsuits against Apple and RIM regarding digital camera technology.
Intellectual property laws and regulations could affect Kodak's ability to protect its patents and
trademarks.

Overall, the PESTEL analysis shows that Kodak faced significant challenges from various external factors,
such as technological advancements and changing consumer preferences, which made it difficult for the
company to remain competitive. Additionally, legal and environmental regulations also impacted Kodak's
operations.