Eastman Kodak: Meeting the Digital Challenge
Issue: The main issue behind this case is the problems faced by the Eastman Kodak Company in the process of changing to Digital technology in printing. It failed to establish market share and market leadership in the Digital sector.
Summary: George Eastman began the commercial manufacture of a new type of dry photographic plate in 1880 in order to reduce the risk regarding with the old technical photo graphic plates. In 1884 he developed silver halide paper based photographic film and 1888 he developed the first fully portable camera. With these two photographic became a leisure activity for the people. On October 24, 1901 the company name changed to the Eastman Kodak Company.
Their main strategy was to provide a fully integrated photographic service supplying the camera and film through to processing and printing. They attracted the people with their advertising slogan "You push the button, we do the rest". Eastman Kodak came to dominate the world market for photographic film, photographic paper and chemicals, and low cost cameras.
Eastman established seven basic business principles for Kodak in order to achieve success.
Mass Production at low cost
International distribution
Extensive advertising
A focus on the customer
Fostering growth and development through continuing research
Treating employees in a fair, self- respecting way
Reinvesting profits to build and extend the business
Kodak continued to build its dominant position in market with vertical integration combined with continuous innovation and product development.
In 1970s they faced stiff competition from Japanese in ...