Strategic Audit for Kodak

Solution Preview

a. External Factors Analysis Summary
EXTERNAL FACTORS ANALYSIS SUMMARY
External Factors Weight Rating Weighted Score Comments
Opportunities
Supplier Relationships 0.10 3 0.30 Raw materials like plastic, metal, microchips, etc are supplied to Kodak by suppliers who have good relationship with the company
Customer Relationship Management 0.10 3 0.30 Kodak's follow-up service and customer relationship management is important to success of sales
Development of products 0.20 4 0.80 Kodak adds value to their digital products through continued investment in research and development
Sales & Marketing 0.20 5 1.00 Kodak has a number of marketing tools in use that add considerable value to digital cameras
Threats
Digital Technology 0.10 3 0.30 Failure to pursue and develop digital technologies could push the player out of the market
Changing Demographics of customers 0.10 1 0.10 Increased globalization arguably has led to customers demanding faster responses to their needs creating much more competitive business fields attempting to satisfy these desires
Increased Competition 0.15 2 0.30 Economically globalization has increased the number and size of competitors which threaten Kodak
Economic slowdown 0.05 2 0.10 Kodak's products are used both by consumers and as industrial goods. Economic slowdown would lead to reduced expenditures by companies leading to slowdown in sales
TOTAL 1.00 3.20

The EFAS table lists the opportunities and threats faced by Kodak. Each factor is given a weight and a rating according to the priority Kodak gives to the opportunity or threat. Weighted score is arrived at by multiplying weight by ranking and a cumulative score is arrived at. The total weight score for Kodak is 3.20 whereas the total score for an average firm in the industry is 3.0. From the analysis it is clear that Kodak is only slightly above the average.

Opportunities
 Supplier Relationships: The raw materials for digital cameras include plastic, metal, microchips, etc. Companies providing these materials have become specialized in their production and distribution. Maintaining good relationships with suppliers has been a good opportunity for Kodak to be able to minimize risk from non availability of materials and for negotiating good rates with suppliers.

 Customer Relationship Management: Kodak products are primarily sold through retail outlets. Kodak's success in the film markets has inevitably helped build strong relationships with buyers because they enjoy margins on the sale of Kodak products. Success in digital markets can be facilitated through continued management of these customer relationships.

 Development of Products: Digital cameras would continue to see growth as long as companies come out with innovative products which are easy to use, and compatible with other devices such as computers and cell phones. Kodak adds value to their digital products through continued investment in research and development. Development can be a big opportunity for Kodak to increase its brand recognition in the digital camera market.

 Sales & Marketing: Sales & Marketing efforts help a company achieve the desired ranking in the industry. It presents an opportunity for companies to gain competitive advantage through market capture. Kodak has a number of marketing tools (in the form of complementary products) in use that add considerable value to digital cameras.
Threats
 Digital Technology: the rate of technological development in the imaging industry has been and is even more ...