Introduction: Background Information
Eastman Kodak Co. is referred to the top level companies manufacturing and marketing professional and consumer imaging digital products; the company operates in the USA, Africa, Middle East and Europe; the headquarters are located in New York and Rochester, employing more than 41 000 people. It was established in 1901 in New Jersey specializing in the manufacturing of dry photographic plates on the commercial basis. Since that period, the company has developed a number of innovative digital products taking a strong position in the photography business.
The company’s industrial position
The company is one of the powerful and profitable leaders in digital industry development of the USA; at the beginning of 70s the company faced the challenges at the market industry connected with innovational technologies and film industry transformations. Nowadays the industry of this company can be characterized by great competitive level producing films in many countries throughout the world. It is necessary to underline the fact that this strong position has its disadvantages; for example, cost problems were caused by high competition, which stimulated the company to improve the quality and increase productivity. The environmental changes made Kodak take a leadership position on the world market.
The paper will be focused on the analysis of new strategic planning of the company, its principal objectives and weaknesses; the central point will be dedicated to analytical investigation of the company’s management peculiarities and strategic perspectives to be developed in near future. (Louks, 2008).
The mission of the company
The central mission of Kodak Eastman Co is concentrated on providing the customers with opportunities ‘to capture, store, process, output, and communicate the images to people and machines’; the key issue in company’s operating its design and facilities, and marketing its products is connected with the attempts to increase the shareholder value and stimulate the community well-being promotion.
It is necessary to underline the fact that key objectives of the company have been identified from the period of its establishment. The growth of business is to be stimulated through the following issues:
- Mass product promotion and production to lower costs;
- Strong product advertising;
- Multinational business development with the purpose of world market exploitation;
- Keeping the leadership position in the sphere of technological developments.
The productivity improvement and innovational enrichment influenced the internal division of the company, outlining the departments, such as imaging, chemicals, and information systems; the restructuring of Kodak faced at the end of 20th century appeared to be the first step to modernization and creative technological products provided to present day consumers. (Eastman Kodak. 2009)
Eastman Kodak is on the way of providing help to the customers’ business growth through technology ranging on the basis of digital capture. Modern business operations are fulfilled in accordance with Enterprise management information systems, which is regarded to be a new management approach developed for business operations improvement. The main conception of the company is focused on its ability to combine the technologies and service in the most professional way. Business Development Service worked out by the company comprises business operating tools, such as vertical market resources, planning resources, open house support, sales supporting training, application samples and guides, and marketing templates. It is necessary to stress that the company introduced Graphic Communications Group, concentrating on the improvement of inventory communication programs. Strategic planning in the company management is based on the creation of effective organizational style to fulfill the tasks:
- Cost reduction;
- Flexibility of the organization attuning to a competitive environment.
Management system operates in accordance with marketing demands on the basis of careful marketing segments analysis.
Kodak Eastman strengths are connected with high productivity and product quality; the strong position of the company’s brand gives an opportunity to get the privileged market share; the leadership position stimulates constant increase of the customers’ basis. High quality of the products made the company be the ‘digital giant’ not only in the USA but on the international arena.
Modern world of digital technologies provides a high competitive level in this sphere; international leaders, such as Sony and Fuji, weaken Kodak products’ promotion in other countries, destroying the balance of supply and demand. This caused a considerable operating loss in 2006 decreasing the sales volume by 9.1%. (Kodak Shares Plunge 25 percent. 2000)
Kodak is technologically equipped on a high level; it gives an opportunity to increase the innovative basis in the sphere of digital imaging. Special stress of the company on imaging emphasizes the digital impacts on the chance to revitalize Kodak core through keeping a more aggressive approach in marketing difficulties settlement. (Jones, 2007)
It is necessary to underline the fact that current weak economical position in the world is one of the greatest threats to the company; the difficulties faced on the European market are connected with the fact that Euro has shed about 27 percent of its value, weakening the company’s brand marketing position. One more threat to the company’s demand is caused by the terrorism rate. It is necessary to stress the idea, that modern fight with terrorism and constant terrorist attacks improves the customer’s demand in Kodak products; as the less terrorism rate will stimulate less photography demand.
Kodak Eastman market and technical perspectives lie in the product commercialization and technology development through the creation of business alliances with smaller companies operating at the same market. Special interest of the company is concentrated on the interfacing of a large corporation with early stage companies and university faculty. The company is interested in building long term relationships focusing on the media, devices and materials to be used in printing applications and related technologies display.
Eastman Kodak. (2009). Algotec systems Ltd. Health Management Technology.
Jones, G. (2007) From Silver Halide to Digital imaging technology at Eastman Kodak: the challenges ahead. Texas University.
Kodak Shares Plunge 25 percent. (2000). Digital Photography news. Web.
Louks, O. (2008). Sustainability perspectives for resources and business. CRC Press.