Key insights from the organizational and industry analysis report
The industry analysis revealed that the imaging industry is a swiftly developing industry which requires the organizations operating in the industry to be highly innovative and adaptive. The rapid development of digital technology brought about a far-reaching change in this industry, and Eastman Kodak could not adapt to it as fast as many of its competitors. Thus, Eastman Kodak lost its foremost position in the photographic equipment and supplies market. The company had to compete with established players who innovated faster than it and build a strong foot hold in the industry in addition to encountering substitute producing companies like HP, Xerox, and Canon etc.
The key matter that Kodak had to face in building its position in the digital imaging sector was that though it held the top position in terms of the conventional photography business associated with photo films, its position in context of digital imaging was very weak in comparison to its established competitors (Blackwell Publishing, 2012).
The key assets of Eastman Kodak that could be its source of competitive edge over its rival companies are its brand equity and awareness in addition to its internationally wide-reaching distribution presence. Moreover, in context of technology, Kodak had made years of investments in research and development activities, which had resulted in the establishment of proprietary technologies. This research and development experience of the company can be regarded as one of its biggest strengths (Kodak, 2009; Grant, n.d.). Eastman Kodak will have to assemble its substantial set of resources and competencies in addition to building new organizational competencies necessary for thriving in this fast pace industry. This is essential to develop and reinforce Eastman Kodak’s position in the digital imaging industry. Analysis of Eastman Kodak's approach to creating a competitive advantage Eastman Kodak attempted to set up its competitive advantage by leveraging on its core strengths as an organization and industrial leader over the years. The conjugation of the company’s renowned brand name, its huge investment in research and development activities over the years, and its global network of manufacturing and distribution, was vital for the creation of Eastman Kodak’s competitive position (Kodak, 2012a). The company had diverged its focus from its original product photographic films and started concentrating on its digital