How Did Kodak Change Its Strategy To Respond To The Opportunities And Threats In The Photographic Imaging Market

738 words - 3 pages

3. - How did Kodak change its strategy to respond to the opportunities and threats in the photographic imaging market?In the beginning the strategy followed by Kodak due to a new and a big market of the recording imaging in paper "the photography" was: mass production to lower production costs; maintaining the lead in technological development; extensive product advertising; and the development of a multinational business to exploit the world market.Along many years the company operated in monopoly, with a lot of investment to growth and to consolidate the position, but the high cost, a inflexible structure made it to adapt to a low cost policy and new products such as the simple to use 35mm camera or the instant photography, photographic laboratories and new products to recording images.Despite of the more aggressive environment the chief executive Colby Chandler changed the strategy of Kodak in order to increase the competitiveness and to take some opportunities of the market. The company focused in 4 operating groups: imaging, information systems, health and chemical.In the imaging group the idea was to cover some necessities in the photographic market, create new and better products, and improve its position in the film processing market.So, the company had to reduce costs again and bought some companies (Texas-Based, Fox Photo Inc.) and formed ventures to create products with the name of Kodak (i.e. Matsushita or Chinon). Also it was needed to increase the amount in publicity to compete with other brands such as Fuji.The strategies of Kodak in the other operating groups were basically to acquire companies in order to diversificate the business. That was possible because Kodak has been the leader in the photography market for many years, this capability made that was able to pay s in 1985 for acquisitions $175millions.4.What other changes in corporate strategy did Kodak make to add value to its portfolio?As one of the changes in corporate strategy we can point out the change in the centralized decision making as a result of the conservative orientation, based on divisional orientation. The different departments within the company worked separately which have led to be deficient in communication, and to the fact that all the decisions took too...

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