Marketing

Kodak 's strategy in the Digital age

Introduction

Kodak is a multinational public company located at New York . The company develops and manufactures imaging and photographic materials of high quality . Kodak is led by Antonio M . Perez as its CEO and has been famous for its wide variety of photographic film products from a very long time . However , the company is currently redesigning its strategy to concentrate on new business opportunities existing in the areas of digital photography and digital printing (Kodak , 2008

Entry of Kodak in the Digital Camera Market

p Kodak made its entry into the digital camera market , in the latter half of 1998 . The company had a goal to improve the clarity , usability , and life of Kodak moments to make them bigger , better , and more enduring . In fact , the decision to upgrade the business operations and the technology used in the company became indispensable to compete in the era of digital photography . Kodak 's aim was to develop a comprehensive system to integrate all its digital products and services , before entering the market of digital photography

Accordingly , the management team of the company directed all its efforts to upgrade the business operations from traditional film to digital products , in the form of cameras and snapshot printers . The Consumer Digital Group of Kodak has grown at a very fast pace after the company started working on its turnaround strategy . As a result , the net profit from the digital subdivision inflated to about 400 from 2005 to 2006 In fact , the credit for this tremendous growth can be attributed to tough pricing decisions across the board and soaring growth in the digital and graphic communications business of the company (Kodak 2008

Product

The decision of the company to supply the digital camera market with Digital Photograph Kit was a major step in the direction of achieving its long-term goals . This kit offered the customers with everything that is required to take and share digital pictures . It included a Kodak DC20 Digital Camera , user-friendly software packages and high-quality for printing purposes . Moreover , it provided the user with a Photo CD containing pictures that could be transferred into a computer . However the company was not able to achieve desired sales figures despite providing the customers with a large number of novel features (Digital Technology , 2008

In fact , the customers were satisfied with the performance of their traditional photographic equipments and cameras . Consequently , Kodak decided to alter its business strategy and joined hands with Intel to fill the gap between traditional and digital technologies . This gave birth to the concept of digitization ' in the world of photography . As a result , Kodak was able to develop the ability to translate a traditional film to a digital format through standard photographic processing technique (Kodak , 2008

The Photo CD included as a part of this package consisted of high quality softwares required for viewing and modifying the images . As per its product strategy , the company tied up with IT giants like Intel Microsoft , Adobe...