DONE BY Romaric ZEIDA Aboubacar GARBA Michele HENRY KILY Mansour FALL Mamadou habiboulaye DIALLO

2337 2340 2346 2349 P0559

KODAK
STRATEGIC ANALYSIS
Directed by Ph.D M. WAHABI
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Kodaks ultimate aim is to remain to be one of the most successful business stories. Thanks to its 130 years of life, this company has the background and the experience required to keep being competitive.

Mission
Kodak searches continually to provide to its consumers the best solutions in the domains of photographic products and to keep giving a good return in investment to the shareholders

Goals

Keep to stay the wolds leader in the sector of photography. Diversify its activities toward other different fields Pursue a general expansion policy and to look forward the acquisition of companies performing in other sectors

Objectives

To be one of the most important actors in pharmaceuticals and biotechnology thanks to the Life Science Division and Sterling Drug Take profit from the 100 billion dollars market of the pharmaceutical industry Promoting the 35mm cameras and equipment which present a large growth potential Focus on the photofinishing segment by acquiring other sepcialized companies

EXTERNAL ANALYSIS

PESTEL ANALYSIS
Political / Legal

Political stability in USA George Bush Seniors presidency and end of the Cold War The economical sector is ruled by antitrusts laws which direct the mergers ,acquisitions or joint ventures processes

PESTEL ANALYSIS
Economic

Relative stability of the US economy Fast growth of the international exchanges Large growth perspectives on the photography sector and specially in Europe

PESTEL ANALYSIS
Social
Photographic devices become more and more used in the familial environment Photographys use is no longer limited to the professionals

PESTEL ANALYSIS

Technological

Evolution toward the digital quality of pictures

Particulars can do themselves the photofinishing (development) with domestic laser printers

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PESTEL ANALYSIS

Ecological

Important use of lithium specially for batteries Recycling problems risen by this material People become more and more sensitive to this situation

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Five factors of Michael Porters

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1) Risk of new entry by potential competitors

The barriers to entry are very high. One of the reasons that there is a high entry barrier is that each company which are currently in this industry have strong brand image leaving a harder job for new company to get in. Additionally, existing companies can take advantage of the absolute cost advantage achieved by large volume of shipments and economies of scale.

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2) Rivalry between established firms

Established players in shipping service industry compete rigorously for a market share, as demonstrated by the battle between KODAK and Xerox, Sharp, Canon in the photocopier market, the company who responses first to the constantly changing environment wins. Established companies have to strive for continuous improvement in quality, lowering price, and innovation. There is very low switching cost for consumers in this industry making rivalry even more intense.

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3) Threat of substitute products There are not many substitutes product in electronic imaging and computer mass strorage devices and Photofinishing market because of the level of the technology that used in that sector. In other hand there are not also many substitutes product in pharmaceuticals and biotechnology market.

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4) Bargaining power of suppliers

The supplier power within this industry is fairly low. This is because the companies that are operating in that sector are very huge, so they buy in large quantities and can turn to different suppliers easily.

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5) Bargaining power of buyers The bargaining power of buyers in photofinishing, electronic imaging and computer mass storage service industry is high. Cost associated with switching from one company to another is very low. Therefore, buyers can turn to a company that offers lower price and service innovation with ease.

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Keys of Success Factors

Finance: The return on investment on the PHOTOGRAPHY INDUSTRY is very high, because the growth in the industry that is attributable to factors according to Standard and Poors Industry surveys: new and improved products and services, and a population mix that has increasingly shifted toward a relatively affluent and free spending 25- to 40year-old age group.

Human Resource: the PHOTOGRAPHY INDUSTRY has now a strong employee base because the need to create a good environment that encourage the innovation.

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INTERNAL ANALYSIS

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Value Chain of Kodak

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HRM

R&D

Image Capture

Finance

Digitization

Retrieval
Storage Transmission

Printing
Manipulation

Projection

Kodaks SBU

Kodak has four distinct submarket

Digital cameras Home printing Online services Retail kiosks and mini-labs

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Kodaks strengths

Innovation Distribution channel Leadership in photographic market Silver-halide technology

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Kodaks Weaknesses

Size and bureaucracy Corporate Culture Non rational Escalation of commitment Kodak has a lot of Unprofitable product which decrease its profit

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Core Competences/Distinctive Capabilities

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Financial Ratios (2010)

Current Ratios : Current assets / Current liabilities = 1.4

KODAKs current assets can cover all of its current liabilities, that is a desirable situation.
Quick ratio: Current assets-inventory / Current liabilities = 1.0 The current assets can immediately cover all of the KODAKs currents liabilities

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Asset turnover: Sales / Total turnover = 1.0 KODAKs total assets are used efficiently to produce sales Return on Investment: Net income Before Taxes/Total assets = -10.7% The rate of return on total assets employed by FEDEX is not appreciable in this year. KODAK has a problem of Return on Investment.

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Competitor Analysis

Kodaks main competitors include Canon, Nikon, Sony, Fuji

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Canon
SCORES

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Price Advertising Market Share Product Design Technology Product Quality Distribution

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Nikon
SCORES

1
Price Advertising Market Share Design Technology Product Quality

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Fuji
SCORES

1
Price Advertising Market Share Design Technology Product Quality

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STATEGIES FORMULATION

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SWOT

analysis
STRENGTHS WEAKNESSES Size and bureaucracy Corporate Culture Non rational Escalation of commitment Kodak has a lot of Unprofitable product which decrease its profit Kodak had diverted its attention from the retail of photo film business

A good brand image among retailers provides them with a measure of comfort Leadership in photographic market Innovation, taking risk and move quickly Organizational and management change. Life science drug division and sterling drug acquisitions OPPORTUNITIES Investment Multi-Cultural marketing Expansion in the field of Health care Digital Image New alliance, acquisitions and merger THREATS Competitors: FUJI is taking its place in the photographic industry The introduction of electronic imaging Shortage of silvers that made them vulnerable in the foreign market

Kodak must go on in growth strategy and continue to innovate new products that can be profitable for them.

Kodak must improve its way to communicate with its employees It also must improve its corporate culture It must stops manufacturing product that decreasu its profit and stops acquiring without profitability

Kodak must not only focus on quality but also on low cost product in order to keep its customer. It should make more market studies for detecting the need of customer in order to sale the most qualified product.

Kodak must do some studies in order to block its competitors and avoid to neglige any product It has to make some studies about its competitors and get informations about them.

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BCG Matrix

Market Growth rate = 17299-13541/13541 = 27,75%

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BCG Matrix

The market growth rate of KODAK is High and it is known as the giant of the photographic industry and health care, so it is positionned on the Stars case, it means that i has market share in rapidly growing market the recommended strategy is growth, add resources and build the business further based upon market projections.
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Mc kinsey s Matrix

Evaluation of internal factors:

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Mc kinsey s Matrix
Evaluation of internal factors:

Comments:

Strengths: Kodak must completely take an advantage from his strengths because it has abilities in certain domains which are very necessary in this sector of activity. Weaknesses: In the average, Federal Express has some weaknesses that can shoot it down or ruin it. So it must try to adapt itself in order to avoid the risks that might come from its own organization.

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Mc kinsey s Matrix

Evaluation of external factors:

Comments: Opportunities: The coefficient obtained from this framework is 2,7. So we can say that the company can take advantage from the environment on the average because its a very complex environment which is not stable and certain. Threats: We have a coefficient of 2,45. so there is an average risk that the company must focus on. The most important to take care is the high level of competition.
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The Strategic Position and Action Evaluation (SPACE) Matrix

Spaces matrix Elaboration

Competitive advantage (CA):
Brand image : -1 Technological know-how : -1 Control over distributions: -2 Average: ((-1)+( -1)+(-2))/3= -1,33

Financial strength (FS):

Return on investment : 1 Liquidity : 5 Leverage: 2 Working capital : 4 Average: (1+5+2+4)/4 = 3 Environmental stability (ES): Competitive pressure : -4 Technological changes : -4 Barriers to entry into market: -2 Average: ((-4)+(-4)+(-2))/3= 3,33

Industry strength (IS): Growth potential : 5,5 Profit potential : 4 Capital intensity : 3,5 Average: (5,5+4+3,5)/3= 4,33

Conclusion: Directional vector coordinates: X axis: -1,33+(+4,33)= 3 Y axis: -3,33+(+3)= -0,33

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The Strategic Position and Action Evaluation (SPACE) Matrix

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