Eastman Kodak CompanyHaley Duell5122016.docx
- 1. Eastman Kodak Company Haley Duell 5/12/2016 BUS/475 Eastman Kodak Company The consumer electronic field is a great and also equally competitive business area. Different companies usually design different techniques to and outsmart their fellow business
- 2. counterparts. They do this via developing various business promotional methods and marketing designs. Companies normally review their marketing strategies from time to time in order to ensure that they make maximum profits in their businesses, the do this due to changing internal and external factors of their business enterprises that they view as factors that slow their advancement. Most of the marketing departments have the likelihood of considering their consumers wants, they have a tendency to make or design products that are very much appealing and motivating to their customers. They do this to ensure customer satisfaction and ultimately they do this to ensure that their company makes maximum profit. Most of the marketing departments try to understand consumer feedback concerning their products therefore they have set up forums to ensure that they get the consumer feedback in order to think of even more interesting strategies that will ensure the companies maximum profit and sustainability in the market. To increase its competitiveness in the industry, the company should produce a new middle range smart phone in the market, 1.1 Brief Description of the company Eastman Kodak is part of one of the growing largest multi- billion dollar corporations in the world. In 2007 it exceeded the $100bn mark in annual sales for the first time in its history. This makes it one of the world's top three companies in the electronics industry where only two other companies, Siemens and Hewlett-Packard, have posted larger revenues. The name Eastman Kodak literally means grow Group’s dominance in two further sectors: Eastman Kodak Heavy Industries and Eastman Kodak Engineering and Construction. If you are talking innovation in Eastman Kodak walks the walk and is now the established leader in consumer electronics, providing a range of leading-edge premium products and, in their own words, ‘leading the digital convergence revolution’. In so doing Eastman Kodak has made a remarkable transformation from copy-cat manufacturer to become Asia's most valuable technology company.
- 3. 1.2 Organizational Structure As of 2013, Eastman Kodak Electronics has established 15 regional headquarters, 54 global sales offices, 38 global production facilities and 34 global R&D centers. Eastman Kodak consists of three main divisions: Consumer Electronics, IT & Mobile Communications and Device Solution s. Each division consists of several subsidiary divisions. 1.3The product being offered To increase its competitiveness in the market, the company should introduce a new mid-range smart phone, Blast, targeting the middle class consumers and the teenage population in third countries who are the largest consumers of mobile phones. 1.4 The strategy behind the plan The plan is designed to achieve the company's targets are formulated to ensure the company adaptiveness. The intent of this plan is to analyze the company’s marketing strategy, the business environment of the Eastman Kodak which focuses in particular in the smartphone production and sales functions. This report therefore intends to explore the various intrinsic and extrinsic factors of the marketing strategy for the new Eastman Kodak Blast and the methodologies of the retailer through SWOT.
- 4. 2.1Market Summary Total mobile phone shipments (that is, sales from manufacturers to the distribution channel, also referred to as "sell in") in 2013 reached 1.83 billion units globally, a year-on-year increase of 6 percent from 1.73 billion units in 2012. Although plenty of growth remains in the smartphone segment, growth as a whole is slowing. Total handset market growth of 6 percent in 2013 was down from 9 percent in 2012 and 13 percent in 2011. Smartphone shipments exceeded the 1 billion unit mark for the first time in 2013, reaching 1.03 billion units and accounting for 56 percent of total mobile phone shipments. This represented growth of 40 percent on 734 million units in 2012. Yet smartphone shipment growth was down from 46 percent in 2012 and is forecast to slow to 21 percent in 2014 (see Section 6, Market Forecasts and Assumptions, in this report). CCS Insight estimates the sell-in value of the mobile phone market in 2013 at $303 billion, up 15 percent from $265 billion in 2012. driven by replacement sales. CCS Insight estimates replacements rates in 2014 were 60 percent of the installed base in 2013 in North America, and 40 percent of the installed base in 2013 in Western Europe. Smartphone growth is now heavily dependent on emerging markets, notably China. China accounted for mobile phone shipments of 385 million units in 2013, or 21 percent of the global total. Smartphone shipments in 2013 approached 300 million, or 29 percent of global smartphone
- 5. shipments. 2.2 SWOT ANALYSIS Strengths · Eastman Kodak is currently to be apparently the world’s most successful electronics producer; it surely supplied the best LCD panel’s mobile phones and smartphones. · Eastman Kodak is strong in terms of manufacturing and manufacturing, and still has a high potential. · Eastman Kodak has established good relations between the retailers in the United States and Europe which are good marketers and provide a steady sales channel for its products. Weaknesses. · Despite introduction of new features, Eastman Kodak has not yet been able to beat Apple or to match Apple in their marketing capabilities. · Eastman marketing structure is not as sophisticated as apple's. · Eastman Kodak phones use Google’s androids matching operating system which is not very much accepted by the people compared to apple iOS which is much preferred by the people. Opportunities · There are new technologies such as wearable technology. · The increasing middle-class in growing countries is likely to improve the market space. · There is growing online markets such as Amazon and Alibaba. · Increased demand for smartphones and tablets boosts the
- 6. market. Threats · Apple has dominated ion some markets in the smartphone and tablet slot. For instance, the United States. · Some companies such as Huawei are serious threats for Eastman Kodak. · Apple reputation in terms of its quality and dependability has been growing from time to time. · Apple has expanded its market mix and directly competes with the Eastman in those fields. 2.2. Direct and Indirect competition Eastman Kodak faces stiff competition from Apple on the high- end of the smartphone market thanks to the iPhone 6 and 6 Plus, while simultaneously facing pressure on the lower-end from makers Xiaomi and Huawei in China. Eastman Kodak has few competitors in the mid-price smartphone market.
- 7. References http://www.lenovo.com/transactions/pdf/CCS-Insight- Smartphone-Market-Analysis-Full-Report-07-2014.pdf Piao, M., &Kleiner, B. (2015). Excellence in the Electronics Industry: The Comparison of the Organizational Culture among Apple Inc., and Google Inc. Conflict Resolution & Negotiation Journal, 2015(1). 3.1 Marketing Strategy Eastman Kodak marketing strategy is of the most effective marketing strategies ever developed since it assists a cost driven company to change its structure; hence become a leading manufacturer. As a result of the ever changing consumer tastes and preferences in the technology industry, Eastman Kodak had to follow the pace and provide progressive and evolving products to customers. Hence, the company had to accept change to obtain an upper hand and the new marketing strategy had to be developed and was the key to evolution. In technology, growth and development are paramount. As a result, Eastman Kodak has created a new product (The Eastman Kodak Blast) that would satisfy the needs of the targeted users. The company has developed in terms of innovation and started to create the need for customers. The company has a vast product portfolio, with a wide range of products. In addition, the company has the largest marketing budget that has propelled it in the competition, which explains its leadership position in
- 8. terms of market share. It deploys a marketing communication strategy that comprises of production and execution. These also include advertising and sales promotion. 3.2 Marketing Objectives Eastman Kodak marketing objectives for the Blast include: i. To provide the market with a mid-price Smartphone. ii. The company seeks to appeal to the mid price consumer by offering a great choice Smartphone for the category. 3.3 Financial Objectives The company has sound financial objectives. For instance, a part from being a trading business, the company sees to diversify into different market segments, such as insurance, securities, as well as retail. In essence, the company has a sound financial strategy, which is Behind its endless success. The company seeks to be a leader in managing finances that has made it to look into financial issues as well as concerns. It adopted and exclusive and effective financial strategy to cope with the current challenges that may cause negative effects on the company’s financial status. Nonetheless, the financial strategy covers a wider scope but this has to be give priority and monitoring to ensure that the company maintains its financial record. Thus, the company seeks to manage finances strategically to achieve its objectives and maximize value (Morrison & Bergen, 2015). The financial strategy involves a comprehensive sequence of approaches, which encompasses an
- 9. inclusive range of company’s incurred expenses. The company also seeks to manage its income and finances to enable organizations and other companies evaluate their financial needs and support sources to be able to meet their objectives and fulfill the company’s mission. 3.4 Target Markets The company targets a wide range of users ranging from the normal users, students, researchers, business executives, and professionals. However, the usual target age range of customer range from 20 years to 50 years or even older depending on the ability to purchase and use the product that the company offers in the market (Zikmund&Babin, 2007). Early adults are usually Eastman Kodak Smartphone target market since they mostly technology savvy. It is a growing target market and has more spending power. Between 25 and 50 years target group are the largest portion of the company’s target market because they have the most ability to purchase the gadgets that the company offers and is expected to expand in the coming years. 3.5 Positioning Positioning is concerned with customer perception concerning the brand as being different from other brands on specific features including product specifications or attributes. The strategies adopted by Eastman Kodak are to emphasize on
- 10. the real margin with regards to high end segments and to brand itself as a synonym for quality. In addition, the company is to design a unique brand image for itself to be a high end value driven brand. 3.6 Strategies The company deploys channel marketing strategy within its industry. As a result of this strategy, only service dealers are considered for corporate sales. In addition, the retailers who present the technology chain are more likely to include the products among their list. 3.7 Marketing Program i. Pricing The company uses skimming pricing and competitive pricing. Eastman Kodak uses skimming to gain the upper hand over rival firms. Competitive pricing is used because the company is a competitive company to be able to withstand the still competition. ii. Distribution Distribution is an important part of the company’s marketing strategy. There are cases where the company has a direct contact with a single distribution outlet that distributed the products. iii. Promotion Eastman Kodak marketing strategy incorporates numerous forms of promotions. It is convinced that advertising is one of the
- 11. vital forms of promotion through engaging with customers. Besides advertising, the company introduces discounts, sponsors, and also engages with national as well as global events; hence its promotional strategies assist in organizing progress in various aspects. iv. Customer Service Eastman Kodak supports its customers and products in different ways. First, the company has a website where the customers can use the “contact us” page to communicate their concerns. In addition, the company also offers Eastman Mobile Customer Care Number where customers can easily contact them. 3.8 Marketing Research Eastman Kodak is one of the companies that is currently reaping profits in the wireless device market; hence their marketing research includes creative qualitative research approaches to collect vital information in interpreting and using data (Cavusgil, 2009). Marketing research informs the knowledge and insights of creative designers and markets. References Cavusgil, S. T. (2009). Conducting market research for international business. New York, NY: Business Expert Press. Morrison, M. & Bergen, M. (2015). Advertising Age, Available at: http://adage.com/article/cmo-strategy/-launches-marketing- blitz-latest-galaxy/297995/
- 12. Zikmund, W. G., &Babin, B. J. (2007). Exploring marketing research. Mason, Ohio: Thomson South-Western.
- 13. Strategic Plan Part 2 Haley Duell 05/24/16 BUS/475 Internal and external environmental analysis and supply chain
- 14. analysis. Internal environmental analysis Eastman Kodak company is Asia’s most considered technology company that considers its customers likes and dislikes on products they produce. They progressively produce new products in the market so as to cater for the customer’s tastes and preferences. Among its large range of products, is smart phones and tablets seeing Blast smart as the newest Smartphone model known as Blast and each day the demand for these products increases . all together, the market place is seen growing as the population of middle class people in growing countries is rapidly growing. There are several markets for the company’s products and more are emerging such as Amazon and Alibdoa which is one of the boosters for the company’s growth. External environmental analysis. Some of the external factors that affect the company ,include competition just as any other organization would face. Its main competitor is Apple which it competes with directly. Apple company remains ahead of Eastman Kodak company because it produces more sophisticated technological products. In addition it uses iOS in its operating system in comparison to Eastman Kodak
- 15. company which uses Google’s android which the customers do not consider much. This remains a challenge to the company. Its other competitors are Xiaomi and Huawei who provide indirect competition and other middle level Smartphone markets. It is worth noticing that the company has deployed some strategies to ensure good relationship with its customers on where customers can communicate with them. This has been made effective through creation of certain websites and provision of Eastman customer care service. SUPPLY CHAIN ANALYSIS. The company has three major divisions:IT,Device solutions and mobile communication with each division having other sub-divisions. It manufactures electronic equipment and these include smartphones, handsets and tablets. The company targets students, professionals, researchers and business people. Customers aging between 25 and 50 years provide the highest market as they have the capability of purchasing and using the electronic gadgets. Although the general growth of the company in terms of the market is slow ,the growth in market of smart phones is quite high. In the year 2013, the total “sell in” had increased from 1.73 billion units in 2012 to 1.83 billion units. Growth market of handsets decreased from 9% in 2012 to
- 16. 6% in 2013. Shipping of smart phones by 2013 was 1.03 billion units. (3/83/RI, 1999) A SWOT table summarizing findings: Strength Weakness Opportunity Threat Global It is valued most by Asians in production of electronics. It cannot match apple company despite introduction of new features The population of middle –class in growing countries is growing rapidly. Domination of apple company in most USA’s markets is a threat. Economic Its sales are steady. It uses less sophisticated features in its gadgets. There is increased demand for smart phones and tablets in the market.
- 17. Technological It offers the best LCD panels, smartphones and mobiles. It uses Google android in its operating system which is not considered much by users. To introduce wearable technology. Shift in buyers needs. Innovation Weak production of innovations.3 To introduce wearable technology. Social it has good relations between retailers in USA and Europe. There is high demand as most people e.g. students, business people e.t.c. Wants the gadgets. Apple company has good reputation from users regarding its products. Environmental Failure to recognize the dynamic environmental that is digital Online markets to market its products such as Amazon and Alibdoa.
- 18. Apple has a larger market hence it directly competes with Eastman Kodak. Competitive analysis It receives competition direct competition from apple company It has created marketing strategies to keep it competitive e.g. skimming and competitive pricing. It receives competition from Huawei Strategy It uses marketing communication strategy that involves production, execution ,advertising and sales promotion. They failed to keep in touch with the market when laying out strategies. With the visionary leaders ,effective strategies are laid. Financial constraints may hinder some of the strategies from being met. Resources It manufactured its own products. The company uses its own trucks to transportation of products hence reducing shipping costs. Market prices are fluctuating affecting purchasing of required resources. Goals
- 19. Produce middle price smart phones to target middle class customers. Bring mid price smart phones to customers that are appealing to them. Strategic capabilities Much focus is in smart phone production and sales function. Some of its leaders are not visionary to lay out effective strategies. There are opportunities to lay out marketing strategies that will help the company sustain its business. Culture It was ranked the leading film producer in the world. Production of analog cameras. Diversify to other income generating sectors e.g insurance provision. Digital revolution as other filming firms have offered competition. Technologies It was ranked the best producer of LCD panels and smart phones in the world. Leaders who are not visionary to welcome digitalization. Installation of internet access features in the gadgets.
- 20. Rapid diversification in technology Innovations There are innovative people willing to create new innovations. Provide a middle price phone in the market. Intellectual property Consumers like photographs so as to keep fond memories of events. The cameras are not digitalized. New production images, printer services leadership Some leaders who are visionary to the company. Poor management that led to its decrease in sales. With the visionary leadership, create new innovations to sustain the business. SYNOPSIS Eastman Kodak company was started by the man George Eastman in the year 1888 with a single camera that took photographs of people. It has grown to being the most trusted technology shop in Asia. The company has created
- 21. several headquarters by the year 2013 that offer best smart phones with the latest being Blast, electronic gadgets, cameras , printers and best photographs for one to keep memories of events. The company ensures that they provide best services and best selling goods to its consumers. They provide communication channels such as websites and customer care services for consumers and clients to reach them. With the dynamic consumers tastes and preferences, they have to consider that so as to improve the business. Eastman struggles to remain competitive despite facing various threats and challenges. With the dynamic technological advancement, consumers prefer cell phones and Personal Digital Assistants PDAs that have inbuilt cameras rendering photograph services from Kodak irrelevant. It receives a stiff competition from other Smartphone producing companies such as Huawei which has a better reputation due to its application of sophisticated features in its gadgets. Fluctuating market prices of electronic equipment is also a big blow to the company. To maintain its position, it manufactures a diversity of items in vast production away from dealing with photography . there are new marketing strategies that involve skimming and competitive ways of pricing so as to be able to withstand the stiff competitition,single
- 22. distributing outlet and offering promotions to keep customers engaged. The company aims at ensuring that its employees and the members of executive remain hardworking to see the company sail to great heights. All employees that are more productive are always retained in the company by ensuring adequate salaries to its employees. It continues to invest in other sectors that provides diversification of its products as well as opening more branches in various parts of the country. It is the objective of Eastman to fund these investment sectors. Maintaining the quality of products for the consumers is a key issue so as to appeal them. This is done by contacting the consumers to know what is their taste and preference. In addition, Eastman Kodak aims at remaining reliable to its customers as well. This may involve delivery of goods and services at a fair cost and in good time so as to win their trust. The company anticipates to create more markets for its products as well as bring more services and products to the limelight. This is to be achieved by venturing into innovating new technological measures and produce the gadgets that are in hand with the current digital platform. As a way of adapting to the dynamic
- 23. technological platform, Eastman Kodak company installs features to help consumers access internet in the electronic gadgets away from other applications since film photography is outdated. They have as well improved printout quality of the photographs to appeal customers who prefer using their cell phones and PDAs to capture snaps as well as sell best quality printers. Due to the unsteady prices of products, it offers to diversify into other incoming generating sectors i.e. Provision of insurances and security. It has financial strategies that are effective that will withstand challenges that can affect the company’s finance and strategically manage the finances in a way it can achieve its objectives. MAJOR ISSUES AND CHALLENGES. From the analysis, we identify the following challenges that the company faces: · Stiff competition from other smart phone manufacturers in the world such as Apple company. · Increased markets rising for digital replacement. · Downfall of Eastman Kodak Company. Who are his competitors and what has it done to remain competitive? What has brought to the downfall of Eastman Kodak
- 24. company? The company faces competition from film photography companies such as Sony, Nikon and Fuji Films in USA. For instance Fuji films came with cheaper products hence winning people’s trust in USA where Eastman Kodak had dominated for many years. Apple company is also a threat to the falling company in production of digital cameras and high tech printers. In regards to the external environment. The rapid development in technology has instilled competition as each company is innovating new technology to remain competitive. Its downfall began in 1990’s when the digital technology swerved in ,which involved sharing photos online but the company never adapted to it. This was due to internal environment force where the company experienced leadership wrangles. Some were visionary and wanted to shift to the digital production and others wanted to remain analog and focus on increasing sales. New firms emerged after copying what the company was doing and taking advantage of the digital revolution to come with new innovations. · Firms monitor how their competitors strategize their work and use it as a stepping stone to their success. · To remain successful it is advisable for a company to make sure that it is difficult for others to emulate their main processes and competencies.
- 25. · The company should keep in touch with the market so as to be aware of the dynamic tastes and preferences rather than focusing on how to increase sales. 3/83/RI, L. (1999). NEW YORK. References http://www.lenovo.com/transactions/pdf/CCS-Insight- Smartphone-Market-Analysis-Full-Report-07-2014.pdf Piao, M., &Kleiner, B. (2015). Excellence in the Electronics Industry: The Comparison of the Organizational Culture among Apple Inc., and Google Inc. Conflict Resolution & Negotiation Journal, 2015(1). 3/83/RI, L. (1999). NEW YORK.