Will Eastman Kodak under the leadership of CEO Perez succeed to manage its new environment? Perform an external analysis of Kodak in the following manner;:
- perform the analysis of the environment applying Porters five Forces Model
- make sure to also examine elements of the Macro Environment
- evaluate how Eastman Kodak managed their environments
- identify threats and opportunities in the environment and make recommendations.
Eastman Kodak Company is known for its wide range of photographic film products, Kodak has consistently increased its market share among digital camera manufacturers. According to IDC, Kodak is the world's largest digital camera manufacturer, shipping over 4.9 million digital cameras in 2004 to surpass traditional digital camera giants Sony (4.3 million) and Canon (3.5 million). Digital camera competitors with smaller market shares included HP, Olympus, Fujifilm, Casio and Nikon.
ANALYSIS OF ENVIRONMENT APPLYING PORTERS FORCE
Porter's 5 forces analysis is a framework for industry analysis and business strategy development developed by Michael E. Porter in 1979 of Harvard Business School. It uses concepts developed in Industrial Organization (IO) economics to derive 5 forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.. Michael Porter, considered to be one of the foremost gurus' of management, developed the famous five-force model, which influences an industry. These are:
1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.
2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you.
3. Competitive Rivalry: What is important here is the number and capability of your competitors - if you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation. If suppliers and buyers don't get a good deal from you, they'll go elsewhere. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.
4. Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do - for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs ...
Almost 2000 words give an analysis of Kodak's environment using the Porters Five Forces model, and including threats, opportunities and recommendations.
Marketing Management: Discuss company's strategies
Case Campbell's IQ Meals
In 1990, Campbell Soup was the undisputed leader among U.S. soup manufacturers, with a market share of over 75 percent. Soup consumption, however leveling off, and top management was looking for opportunities for growth in related markets. Competitors such as ConAgra (Healthy Choice brand) and H. J. Heinz (Weight Watchers brand) were making sizeable sales and profit gains in their frozen foods lines, stressing their dietary benefits, and this seemed like a good place for Campbell to begin generating new product ideas. At the time, the U.S. public was becoming more interested in the relationship between diet and disease prevention. It seemed that, every day, health benefits were turning up in one food or another, causing fads such as oat bran to: sweep the country. Campbell's R&D department soon turned to investigating the diet disease relationship, focusing on foods that could be used to prevent illnesses such as diabetes or cardiovascular disease (including high blood pressure). Given that 58 million Americans have some form of cardiovascular disease, and another 16 million have diabetes, this focus seemed very reasonable. Soon enough, the rough idea had been generated: a line of foods with medical benefits. The rough idea now needed to be further developed.
The challenge was to develop a food line that not only played a role in the. prevention of these diseases, but also would be accepted and adopted by the U.S. population .Dr. R. David C. Macnair, Campbell's chief technical officer, built an advisory board consisting of leading nutrition, heart disease, and diabetes specialists, who would scientifically analyze the new products. Campbell's CEO at the time, David W. Johnson, was 100 percent behind the food-with-medical-benefits idea, saying that it had "explosive potential." Soon, he was attending the advisory board meetings as well. Mr. Johnson said, "Wouldn't you be dumbfounded by the opportunity to take a quantum leap and develop a product that could help improve the health and nutrition of the world?"
With the backing of the Campbell CEO, the project was underway, with a clear goal: to make the concept of healthy vitamin-and-mineral- rich meals a reality. The Campbell food technologists found this a challenging task-one of the early prototype fiber-enriched rolls "could have been marketed as a hockey puck," according to Macnair. By fall 1994, however, about 24 meals that passed early taste tests were ready for clinical trials to determine health benefits. Over 500 subjects ate the meals for 10 weeks, and most reported improvements in cholesterol, blood pressure, and blood sugar levels. None experienced side effects, and many reported they liked the taste. Meanwhile, Mr. Johnson created Campbell's Center for Nutrition and Wellness, based in the Camden, New Jersey, head office and employing 30 nutrition scientists and dietitians. Next came the market test. Campbell marketing staff selected the name "Intelligent Quisine" (or IQ Meals), and a blue box or can for packaging. The plan was for UPS drivers to deliver 21 meals (mostly frozen, a few in cans) each week to test subjects' doors. By January 1997, the product was being test marketed in Ohio, backed up with a print ad campaign and a 10 minute infomercial designed to stimulate toll-free calls to Campbell's information line. Campbell also hired part time pharmaceutical sales reps to pitch IQ Meals to doctors, and contacted leading hospitals such as the Cleveland Clinic to distribute IQ Meals and promotional material. Things were looking up!
1. What major macro environmental forces will impact the likelihood of success or failure for Campbell's IQ meals? List the forces and following each indicate how they will impact IQ (e.g. +, - and +/-) and its market success.
2. How should the voice of the customer enter into IQ meals' design and launch?
3. Conduct a SWOT analysis of Campbell in introducing IQ Meals. Under each area of your SWOT list no more than three (3) considerations (e.g 3 strengths, 3 weaknesses, etc.). What are the overall implications of your SWOT for the proposed product?
4. Evaluate Campell's strategy with IQ Meals. Do they have a marketing strategy? How could their strategy be strengthened?
5. What contemporary marketing tools seem particularly applicable to the launch and continued marketing behind IQ Meals? Pick two tools and very briefly outline their role and fit here.View Full Posting Details