Major Issues on Kodak and Fujifilm - Essay Example

Eastman Kodak and Fujifilm Company Question History and core business of Eastman Kodak and Fujifilm Company Eastman Kodak Company is a public company founded in 1889 by George Eastman.the company’s headquarters is in Rochester, New York, United States (Garcia, 2004). The company specializes in digital imaging and photography. It mainly deals with products like digital imaging, photographic materials, equipment, and services. The company has its branches almost in all the corners of the globe. During the last century, the Eastman Company mainly held a dominant position in photographic film. Like back in 1976, the company held almost 90% market share in the United State photographic film sales. This did not last for long, as later in 1990s, the company started to experience financial strains as a result of decline in sales of photographic film (Garcia, 2004). This decline in Eastman photographic film sales was also enhanced by it slowness in shifting from the analogue to digital photography. Fuji Film Company was started in 1924, with a core purpose of becoming one of the first Japanese producers of photographic film (Hill & Jones, 2010). Ten years after its formation, Fujifilm started to produce x-ray films and motion picture films. Fujifilm is one of the main Japanese famous multinational photography firms with its headquarters in Tokyo, japan.The company deals with the production and sale of color photographic films, medical imaging equipment and materials. Question 2 Compare and contrast the approach to management Both Kodak Company and Fujifilm Company have much in common. In their early stages the two companies enjoyed huge market share in their local markets, with Kodak almost dominating 90% of the American film market share (Garcia, 2004). Later in the late 90s, both companies saw their traditional business’s rendered obsolete with the changing technology. With Kodak company management failing to respond adequately to the changing technology, Fujifilm has rapidly transformed itself to be a prosperous company with its market capitalization policy. Both Kodak and Fujifilm companies saw the change coming in the Kodak industry. With both management bodies aware of the changing markets, they planned on how to adopt the new innovation in the market. The Fujifilm company management quickly responded to the changing technology by developing various pronged strategy. To adopt the new innovations in the market, the company decided to develop new business lines (Hill & Jones, 2010). On the other hand, in its attempts to perfectly embrace the new innovations in the photography markets, Eastman Kodak management allocated large sum of money on research (Garcia, 2004). But despite this approach by the Kodak management, the company failed to fully adopt the new innovations in the market. This was due to its culture, which had already made it a complacent monopolist. Question 3 What other management differences have impacted the relative success of Kodak and Fujifilm Another key management difference between Kodak and Fujifilm management was that Kodak management team suffered from a mentality of perfect product (Garcia, 2004). Whereas the Eastman Kodak company management spends their time focusing on how to produce perfect products, the Fujifilm Company keenly focused on how the company will adopt high tech mindset to enable it make, launch and fix its products to fit the customers demand. This management approach by the Eastman Kodak company made it to concentrate in one town, which was harmful to the growth of the company. Even when the company’s management thought of diversifying its operations, the overall process was too slow. Out of this, the company failed to make markets breakthrough. On the other hand, Fujifilm diversified more successfully. This is due to the effective management approaches adopted by Fujifilm Company. While the Eastman Kodak company used a lot of capital to carry research on how to create perfect product, the Fujifilm management adopted some effective plans that saw the increase in profits to the company. In its attempt to overcome the dominance of Kodak in the American market, for example, Fujifilm management opted to sponsor the 1984 Olympics in Los Angeles (Hill & Jones, 2010). The publicity Kodak ganed from this sponsorship helped its far cheaper films to enter and dominate the Kodak’s home market. Secondly, as the Eastman Kodak management failed to outsource much of the company’s production, Fujifilm management panel came up with very attractive ideas. The company management successfully created new markets outlets for its products. For example the firm created new optical films that perfectly matched with the LCD flat screens (Hill & Jones, 2010). This company initiative has really paid off. The firm now through its new outlets enjoys almost a 100% market share on optical films. Late 90s, Eastman Kodak company management decided to crank its digital cameras thus allowing its customers an opportunity to post and share their pictures online (Garcia, 2004). The management failed to come up with more effective way of doing this. Instead of cranking out digital cameras, the management could have opted for more effective channel like face book page which could have made Kodak more competitive. As Kodak management went on adopting ineffective ideas, the Fujifilm company management was busy launching different lines of cosmetics both in Asia and Europe (Hill & Jones, 2010). These new lines have continued to dominate both the local and foreign markets. The difference in management approaches between the two companies has seen Fujifilm achieve more market growth in comparison to the Eastman Kodak company. Question 4 Evaluate each company’s approach to ethics and social responsibility East Mark Company has always shown its commitment of operating in an ethically and socially responsible manner by maintaining safe facilities, providing products that are safe, and also by ensuring that its operations cause less environmental damage throughout the firm’s life cycle (Garcia, 2004). The company has also laid down valid plans to ensure that it suppliers also play a very significant role towards this social and ethical commitment. Trough the supplier standard, Kodak Company has sets expectations for suppliers. The company suppliers are urged to ensure safety of their products, healthy environment, fair labor and ethical standards. These practices are regarded as a supply chain initiatives and the company ensures that its suppliers passes these expectations to their suppliers thus ensuring uniformity across the supply chain (Garcia, 2004). The company ensures that all its employees are treated with dignity and respect. The company also ensures that the suppliers operate in an ethically responsible manner. This friendly approach of Kodak Company towards ethical and social responsibility has created a conducive interaction between the company employees, managers, consumers, and also the general public. This cooperation has allowed the company a great opportunity to establish itself in different areas. Trough this, the company has been able to attract many customers thus significantly increasing it overall profit. After Fujifilm shifted to become a holding company back in 2006, it incorporated several principles like respect for human life and other socially related principles that stipulated how the company employees; both senior and junior will work (Hill & Jones, 2010). The company, through the press statement encouraged it employees to commit themselves to the fulfillment of corporate social responsibility in their daily business duties. The company through every mean attempted to contribute to the sustainable development of the society by even putting into practice the Fujifilm group corporate philosophy. The company also went a mile further to sponsor the Los Angeles Olympics in its endeavor to give back to society. All this earned the company a lot of publicity thus allowing it to attract more customers both in its home market in Japan and also in foreign markets like Europe. This led to expansion of the company’s market thus increase in overall revenues and profits (Hill & Jones, 2010). Question 5 Extent to which management of both companies adapted to changing market conditions The Kodak company management initiated several programs to counter the changing market conditions. The company’s management allocated a lot of funds in research so as to realize better ways of creating perfect products to fit the changing market. The management also tried to crank out the company’s digital cameras so as to give room to the consumers to share their pictures online (Garcia, 2004). Though these attempts were somehow successful, they were not effective enough to keep the company in the market for long. On the other hand, the Fujifilm Company successfully adjusted to the changing market conditions.first, the company sought new markets and outlets for its film products, which saw it, enjoy a 100% market share. Secondly, Fujifilm started a new cosmetics outlet in Asia and Europe, which ensured flow of revenue despite the change in markets (Hill & Jones, 2010). Lastly, Kodak Company also adopted high tech in its products creation. All these adaptation saw the company persevere the extreme markets conditions that leaving it as one of the most successful film photography in the world. Question 6 Three ways any company should build in flexibility to back up its decision-making process in order to adapt to changing market conditions Flexibility is very crucial for a firm that operates in a rapidly changing environment. To ensure this flexibility, a firm should create a flexible work force (Snopek, 2012). This is because market change may call for people with different skills.Secondly; the firm should build a network of partners (Snopek, 2012). This is because if a firm cannot be able to meet the changing market on its own resources then it can work closely with its partners to facilitate the change. Lastly, the firm should always show strong leadership (Snopek, 2012). This is because business leaders need correct tactics and adequate tools to adapt to the quick changing markets. References Garcia, J. (2004). International Marketing Management and Exporting of Fujifilm. GRIN Verlag. Hill, C. W., & Jones, G. R. (2010). Strategic management cases: An integrated approach. Mason, OH: South-Western/Cengage Learning. Snopek, L. (2012). The complete guide to portfolio construction and management. Chichester, U.K: Wiley. Read More