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Kodak's Position in the Analogue Film Industry

Please answer to all comments included in the KODAK_Q1 file and the following question:

The 2 files from the case (pdf files) are attached.

Q2: What are Kodak's prospects in digital photography? (use SWOT analysis)

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STEP 1

Kodak-type business which dominated the analogue market. In 2000, Fuji and Kodak together controlled 70% of the world's color film market.
However, Kodak type business was declining. For example, exhibit VIII shows that sales of traditional cameras sold in the US declined from 18 million units in 1999 to 7 million in 2004. This trend is likely to be replicated in different parts of the world as the proliferation of computers and digital cameras takes place. The falling figures in the US market shows that Kodak-type business products are in the decline stage of the PLC and Kodak thus is likely to face falling demand. US trends are precursors to international trends and Kodak can expect to face falling demand the world over.

STEP 2
What about the law suit filed by Sony?

The lawsuit filed by Sony relates to patent infringement by Kodak. The charges are that Sony had infringed on 10 patents owned by Kodak. The court is required to decide if Kodak has infringed on its patents or if Sony has infringed on Kodak's patents. If Kodak wins the suit then it has the authority to charge license fees on every camera sold by Sony. Kodak is already charging such fees from 10 such camera manufacturers. In other words the implications are that suppliers of technology wield bargaining power. For example Kodak has been able to charge licensing fees to 10 makers of cameras. Because of this the power of suppliers is medium or even high. The suppliers of technology can actually prevent new entrants from making digital cameras unless they are paid licensing fees.

STEP 3
I am unclear of the role of the yellow ellipse ("Customer/human needs for instant prints") in the CLD. For example, the way I read it, the CLD appears to be suggesting that more patents or competitive advantage will lead to greater need for instant prints. I don't follow the link.
Reading through the whole document, one possibility might be that "...needs for instant prints" could be replaced by something on the lines of "minimising the technical processing skills required of the customer". That way, you could perhaps build up a CLD which applied equally to Kodak and Polaroid. But that's only a suggestion.

If in the yellow ellipse we say " Increased demand for instant prints". This would mean that more competitive advantage would lead to increased demand for instant prints.

The implications of increased demand for instant prints means the ...

Solution Summary

This posting gives you an in-depth insight into Kodak's position in the analogue film industry

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