Eastman Kodak Company and Fujifilm are competing corporations in the photography supply and equipment industry. When the industry changed both companies were impacted, but due to very unique management styles and ability to adapt to change one Fujifilm excelled while Kodak faltered and eventually declared Chapter 11 Bankruptcy in 2012.
History of Kodak
George Eastman founded Kodak, in 1888. The company’s early success was based on the new technology for cameras. The camera simplified the photo taking process (Williams, C. 2013) Kodak’s main focus was photography and imaging. They had an array of products that ranged from photography equipment, film, paper and color chemicals. In ...view middle of the document...
Popularity for Fujifilm grew at an enormous rate. They were in second place in the United States in film usage. Eventually, they began selling globally. Fujifilm made bold moves in American market. They used aggressive marketing and lower prices for their product. The 1984 Los Angeles Olympics marked the turning point of the Fujifilm’s success in this venture, when they became the official film of the event. This placed Fujifilm on the market permanently. The company began taking over Kodak’s market share by offering equal quality products for a lower price (Tsurumi, Y 1999). As Fujifilm prepared for the fast changing needs in the market, it widened its business scope to digital cameras, printers, photocopiers, and optical devices. It also tapped into the health sector, producing medical equipment that includes X-ray imaging and chemicals. In January 1934(Tsurumi, Y 1999). In February 1934 the Ashigara Factory began operation producing photographic film, print paper, dry plates and other photosensitive materials (Tsurumi, Y 1999). With reported revenue of 917.4 billion Yen ($9.8 billion,) today Fujifilm is the world’s largest photographic and imaging company. Manufacturing Digital cameras, 3D Image products, binoculars, supplies and a multitude of products and services to various businesses Fujifilm has established itself in several markets within the U.S. and other countries (Tsurumi, Y 1999).
Compare and Contrast Kodak and Fuji Film
Kodak’s failure to embrace innovation in a timely fashion could be blamed on its management’s approach. They seemed to “rule” from behind the desk from their Rochester headquarters, which made them ignorant about the coming changes in technology and customers’ needs, and how it would affect them. Even when they were advised that the move to digital technology was necessary, management still refused to take action. In fact, avoiding revolutionizing the technology they originally created is the main reason behind Kodak’s current troubles and loss of share in the market (Snyder, 2013). Although they created the first ever digital camera back in 1975, top-level management rejected the idea in fear of losing its core business in film. Looking back, this seems to be the turning point in the company’s fortune (Tsurumi, Y 1999). The predicted change to digital technology 20 years later was seen as the far future, and as the company enjoyed success, leadership did not see a reason for change.
Kodak was at a downfall because of complacency and not changing with the market. For decades Kodak’s sales and profits climbed. Management had the easy job of simply refining existing products rather than creating new ones. Many business owners did not adopt and change their way of thinking for their own companies. Small business with its lean and management style could easily be lured into unrelated industries. Most cases this will not only result in failure, and also have a negative impact on its core and products and...