KODAK AND FUJIFILM

Kodak and Fujifilm

Kodak and Fujifilm

1. Describe the history and core business of each company.

Eastman Kodak Company is a company providing the photographic and imaging equipment, services and materials and is based in Rochester, New York, United States. The company was established in the year 1889 by George Eastman. The company is popular for the photographic film products. After its inception, the company had adopted the razor and blades strategy which was directed at the sales of cheaper cameras and manufacturing large margins from consumables —chemicals, film, and chemicals. During the later part of 1976, an 85% of camera sales and 90% of film sales were commanded by Kodak in the United States. During the late 1990s, the financial struggle of Kodak started due to the decrease in sales of photographic film and its sluggishness in transitioning to digital photography (Kodak, 2012).

Fujifilm, officially named as Fujifilm Holdings Corporation, is a multinational company providing the imaging and photography services and is based in Tokyo, Japan. The fundamental activities of Fujifilm include the production, development, servicing and sale of digital cameras, color photographic film, color paper, graphic arts equipment and materials, optical devices, photofinishing equipment, medical imaging equipment, photofinishing chemicals, flat panel displays, printers and photocopiers.(Fujifilm, 2012).. The company diversified after the Second World War, and then penetrated the printing, medical (X-ray diagnosis), magnetic materials fields and the electronic imaging.

2. Compare and contrast the approach to management that each company has pursued in order to embrace innovation.

In terms of innovation and product development, Kodak had significantly concentrated on the market of digital imaging through installing digital print kiosks worldwide (Kodak Picture Kiosk), establishing its leading photo services online (Kodak Gallery), taking the lead as the leading manufacturers of digital camera (Kodak easy share), entering the market of ink jet printer (Kodacolor) and making move into other businesses such as health business in order to fund its transition. The management approaches of Kodak have made it a consumer brand which possessed a strong technology base. Thus, apparently, the company strived to fulfill the customers' user needs relying on the further potential of the new digital imaging technology.

Fujifilm had adopted a different management strategy for undertaking and managing innovation. The company offered to its customers prints services and digital cameras but also directed its focus of spending otherwise. The company began venturing in numerous other connected markets. The strategy marked it with the new name “Fujifilm” while leaving the word “photo” out and was launched with Fujifilm in the year 2006. It seems that, instead of meeting the needs of consumer markets, Fujifilm aimed upon discovering new executions and possibilities for their existing technologies by changing the name and marking the “second foundation” of the company. The strategic alliances and joint ventures of both the companies also provided a boost to their management strategies.

3. Determine what other management differences have impacted the relative success of Kodak and Fujifilm. Provide specific examples to support your ...