Eastman Kodak Company
Eastman Kodak Company was established in 1888 by George Eastman. Eastman Kodak Company is a technology centered firm that specializes in entertainment merchandises along with services. The enterprise has its headquarters at Rochester in New York. The company has been able to survive through both profitable and bankruptcy times. Currently, the management is working at making the company a world-class company as well as creating opportunities for profit making. This paper implores the objectives, integration strategies and the profitability diversifications embraced by the firm as it faces severe competition in the film industry today.
Kodak services and products
Eastman Kodak Company deal in imaging and commercial filming products used world over. Kodak majors in two central segments. These are Graphics Entertainment and Commercial Films (GECF) as well as Digital Printing and Enterprise (DP&E). The GECF merchandise offers digitalized and traditional products. The GECF products include front-end controller, production workflow soft wares, motions imaging product, intellectual properties, licensing of brand activities as well as industrial filming. This section goes further to serve enterprises in executing activities such as printing, direct mailing, publishing of books, magazines and newspapers. This includes activities such as producing films for companies and producing motion picture entertainment for the companies.
DP&E section deals with inkjets and electrographic printings remedies facilities as well as consumable services. Kodak’s DP&E consumable services include packaging of the facilities used for printing services, offering of services that can be sued in protecting brands as well as documentation management. Some of these products and services have survived the market since Kodak was established with a few advancements and changes being done on them to suit the changes in technology.
Objectives of the Eastman Kodak Company
Kodak adopted a strategy to help it grow from bankruptcy. The company’s low operations were triggered by inability to efficiently adopt to the changing technologies that impacted customer electronic tastes. It is worth noting that Kodak failure arose from sluggishness in responding to the competition that was arising from the Japanese Fujifilm (Rajagopal, 2007). Kodak has developed objectives that propel it towards growth. The company aims at massive productions at lower costs. The firm works at sustaining the lead in technological advancements. This can be done through intensive researches and studies on how the products can be bettered to suit the current market niche.
The company aims at extensively advertising its products. While this may have the negative effects when looked into from the costs involved in advertising, extensive advertising goes a long way in goes a long way in escalating sales, broadening market share as well as increasing customer values (Wrenn and Mansfield, 2014). An enterprise that is the first to release fresh products in the market wins the trust of the clients. Advertising is significant is letting the customer understand that the company maintains robust efforts in remaining relevant in the market. Visibility is created through advertising which boost the reputation that the customer has for the company’s products.
In a bid to get a wider market share, the company aims at developing a multinational enterprise. The firm works at reducing costs so as to be able to attract a larger clientele as compared to the current situation. This goes a long way in boosting the revenues and the earnings of the company. In addition, it attracts, retains and motivates the shareholders who tirelessly work towards success.
Kodak’s vertical and horizontal strategy.
Kodak’s real strategies are objective on maximally improving the shareholder’s values. This is done through a continued, fiscal oriented and organization processes improvements. These are designed towards optimally aligning the firm’s existing and prospective investments. The fact that Kodak has been in the market for a long time places it in a better position to serve its local, traditional as well as its global market. Kodak has horizontally strategized by entering into mergers with other firms, which deal with related products (Robbins, Bergman, Coulter, and Stagg, 2011). This is significant as it lowers competition in the market
Kodak is determined in establishing transformation measures in building the strongest foundation ever for the Kodak brand. This brand will meet the current market demands as well as those of the customers. Today, the company works at reinventing itself. Attention is given to products printers, packages and the software used workforces.
The company strategizes at maximizing the control of its existing chemical-based imaging enterprises. This will increase its profits and win loyal clientele for the company. Costs can be cut by cutting the internal costs. The available finances should be well managed so that more to revenue generations and maximizing capitals, the company may be impacted positively through effective management of spending and controlling of costs. The business is tirelessly working on generating more money than they are incurring in production costs. This is efficiently done by evaluating the expected returns and understanding how the expenses will recover the amount of money spent in productions. Cutting of productions impacts the prices of products in the market thus wining the price-sensitive customers and those who are loyal to any brand.
To further escalate its profitability, the company diversifying their activities by venturing into new market segments. According to Hill and Jones (2012), diversification is significant creating a new market share as well as novel products and services. This enables the company to venture in business lines that are different from the existing operations. Growth arises, as a result of diversification is important as it affects the organization.
Eastman Kodak has launched critical strategies vital for achieving competitive advantage. This will service the company especially in the competitive cloud industry. The enterprise aims at sustenance that leads to technological advantage. The cloud service in the industry has been caused by new technologies like digital imaging. Kodak desires to acquire first movers in novice technology. As one of their vertical integrations, Kodak works at venturing in the global markets. This will incorporate both the existing market as well as untapped markets.
Implementation of Kodak strategies and corporate responsibilities
The Kodak Company should hold a holistic perception of its activities and measure its engagements against the social, environmental and the fiscal backgrounds. This is because incorporating ethics into business strategies facilitates the development of sustainable businesses. It is worth noting that ethics are central to success of a business enterprise. An effective ethical policy should go beyond any regulations. It should aim at adding value to brands. On the contrary, failure of ethics at the corporate level may lead to the undermining of the company’s long-term plans as they may cause damages to the environment, the social as well as the economic settings.
The quality of administration is critical for the observations on the progress of the social, environmental and economic arenas. This leads to sustainability and a lot of justice is done to the green agenda. Any chances of negative impacts are limited as the positive effects are prioritized.
It is important to ensure adequate supply of the products in the market. This can be done by ensuring a year-round product supply as well as maintaining sufficient product quantities in the market. Continued firm shape and presence can benefit the company highly.
Recommendations viable for Kodak.
Kodak has been faced with a lot of competition. My personal recommendation is that Kodak work at recovering the lost market share. This can be done through introducing competitive Kodak Funtime films to an emerging clientele. Evaluations on the demographic market segment as well as the casual film consumers should be properly conducted.
Kodak should establish line extension. This can work effectively when toppled with realizing a new product in the market that aims at the existing consumers rather than any new ones. The company should position standard films at affordable prices. The technology used should be innovative yet inexpensive. This makes the consumer’s feel secure as they get quality Kodak products. The firm should allocate advertisement support mechanisms. These will go a long way in creating product awareness, which affects the customers as it maintains the company brand image.
Jones, G., & Hill, C., (2012). Strategic Management: An intergrated Approach. Cengage Learning Publisher.
Rajagopal,. (2007). Dynamics of international trade and economy: An inquiry into emerging markets. New York: Nova Science Publishers.
Robbins, S., Bergman, R., Coulter, M., & Stagg, I. (2011). Management. Pearson Higher Education AU Publishers.
Wrenn, B., & Manfield, P. (2014). Marketing Planning Guide. Routledge publishers.