Business 599: Strategic Management
A New Strategy for Kodak
1. Establish five (5) key objectives for Eastman Kodak that encompasses the operational, financial, human resource aspects of the business. Next, argue that each of the established objectives is essential to the success of the company within the Cloud service industry.
The new strategic role of Human Resource (HR) management that requires that HR systems not only achieve operational excellence in performing their traditional activities, but that they also contribute to developing the strategic capabilities needed by the organization to maintain its competitive advantage. Initially, Kodak ...view middle of the document...
Kodak desired to attain the first mover advantage in new technologies. A company that becomes the first to release new products in the market usually gain trust from the employees as far as originality and quality is concerned. With this sudden change of technologies, Kodak's CEO implemented four (4) new strategies, including: 1) increase Kodak's control of its existing chemical based imaging businesses; 2) make Kodak the leader in electronic imaging; 3) diversify into new businesses to increase profitability and ; 4)reduce costs and improve productivity. For Kodak, mass production is essential in order to service its traditional local and global market. Generally, the company had been relying on its traditional silver halide photography. Mass production is necessary to sustain its target annual revenue.
Lowering the cost of production is a critical objective of the company. From the case study, it is apparent that other companies such as Fuji of Japan have been able to maintain lower prices for their products. Therefore, Kodak had to identify ways to cut its cost of production to avoid being pushed out of the market. Kodak had a strong brand and image, which carried them over the years and afforded them the equity used to diversify its business. However, the emergences of new companies that are efficient, especially in digital imaging have neutralized the company’s popularity. Therefore, the company had to invest more advertising to uphold its brand image and reputation. It was believed that expanding its international presence, would enhance its customer responsiveness and efficiency. In addition, it would be able to access the remote markets, especially the developing countries. However, due to funding loss, Kodak has had to shut down it's operations in other countries.
2. Analyze Kodak’s horizontal and vertical integration strategy and determine the corporate level strategy that is more appropriate for the company to establish a competitive advantage in the Cloud service industry. Provide a rationale for the determination.
Horizontal and vertical integration strategies are essential in current dynamic and competitive business environment. Horizontal strategy is critical in reducing the market competition by acquiring or collaborating with the competitors to pool resources and operations to better compete in a business industry. To start with, Kodak extensively invested in horizontal integration strategy due to the intense competition in digital imaging; and ultimately, the cloud service industry. Kodak entered into a joint venture with Chinon of Japan to produce a range of 35mm automatic film cameras that would be sold under the Kodak name. In addition, invested in film to match the new 35mm market and tried to gain control of the film processing market by purchasing Fox Photo Inc. (Hill & Jones, 2013).
On the other hand, vertical integration strategy would assist in reducing the cost of production by...