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Key resources and capabilities in eastman kodak

For further copies or publication permission, or citation please email us at Hthestrategytank gmail. The Graphic Communications segment provides inkjet printers, high-speed production 2 Kodak Website; Retrieved on 2nd Decemberavailable at www.

Kodak is indeed in trouble, admittedly key resources and capabilities in eastman kodak are many other businesses — especially under the current sluggish economic climate, but what separates Kodak from a number of other similarly distressed firms is the continual failure of strategy at the Big Yellow.

This has happened in spite of recurrent market signals to help guide strategists, coupled with a number of changes at the top. Why is this the case? What went wrong at Eastman Kodak? How strategists should define or solve strategic issues so as to generate the best possible solutions is an area of great debate between two schools of thought; the Rational Thinking Perspective RTP and the Generative Thinking Perspective GTP.

The RTP is often favoured because of its mutually-exclusive and collectively-exhaustive approach to breaking down problems into discrete and manageable components through four distinct stages of strategic thinking — identifying and diagnosing problems, followed by conceiving and realising solutions.

  • I have to complete a paper of a strategic plan for eastman kodak key success factors of eastman kodak the main resources for the research of eastman kodak;
  • Deciding to augment internal capabilities with outside service providers is a long-term rely on employees as a key resource eastman kodak's health imaging division in denver implemented a customized training program after implementing a new control system;
  • Its ability to reduce the operating expenses by million USD annually is another critical business aspect that will enable it to compete effectively in the market;
  • This is a crucial resource;
  • Resources with the Greatest Competitive Power Human expertise on digital imaging is the greatest competitive power for the company;
  • This will help massively in promoting efficiency, which usually is an integral part of improved financial performance.

Although the paradox appears mutually exclusive in fundamental basis, it is not necessarily true that each reasoning perspective cannot be to some extent co-joined — albeit in small part 11 MacKay, B. What is clearly apparent however, is that relying solely on one undiversified approach could be dangerous to the extent that an organisation would lack the balance of the other integrating portion.

This issue of singularity is discussed in the case of Kodak that follows. Kodak used a razor-blade strategy: In a similar theme to T. Strategic problems were tackled through rigid means, and as mistakes in the in the manufacturing process were costly, and profitability was high, Kodak avoided risky decisions, and instead developed procedures and policies to maintain the quo.

Instead however, Kodak lacked the frame-breaking Kodak virtually committed corporate suicide behaviour postulated by the GTP approach. The result was a yellow by sticking to a business model that was to dinosaur of myopic proportions that lagged the behind the market.

A radical change was required, and one that could have been found in a more key resources and capabilities in eastman kodak and intuitive GTP approach.

Kodak would restructure, letting its film business wither while re-investing the cashflow in new digital technologies. Since then Kodak has laid off 11, workers; 15, more will go by Instead, the result was a yellow dinosaur of myopic proportions that lagged the behind the market.

The discontinuous renewal perspective DRP that focuses on making change radical and revolutionary, and the Continuous Renewal Perspective CRP that offers incremental changes by a more subtle approach.

Since the s Strategic change has come to the forefront after being an often-overlooked component of building good strategy. Whether this is an on-going process or one of swift action is most probably highly dependent on the type of organisation or the business issue at hand.

Case Analysis: Eastman Kodak in 2012

The tempo is different. The kind of skills you need are different. In the absence of this however, the firm would have benefited from undergoing a radical revolutionary change as although Carp correctly realised the strategic changes required, the business lacked the forceful nature of revolutionary execution that would have allowed Kodak 24 A.

Swasy,Changing Focus: Evolutionary change had failed Kodak in the years leading up to this point, and now revolutionary change was necessary.

Key resources and capabilities in eastman kodak

The digital age had shaken the imaging industry, and now Kodak needed to apply the same revolutionary change internally — or else the market would. As a recent observation declared, the risk is that after more than years of bringing the wonders of photography to millions, Kodak will again make a half-hearted transition.

If the firm stumbles this time, a break-up beckons. Prahalad and Hamel, who suggested that resources that are valuable, rare or are in some form difficult to imitate form the core-competencies that enable an organisation to compete successfully, questioned this theme. The following case study analyses how Kodak failed to recognise its strategy in reference to these two divergent views of strategic content.

E, Competitive Key resources and capabilities in eastman kodak Not for the first time, Kodak has been trying to find a future beyond film,35 and in September a new strategy was announced: We also announced we would select future business opportunities, notably in the display and inkjet 36 markets, that build on our core competencies and our solid base of intellectual property. As the market rapidly changed around Kodak, the business began to consider what functions could be developed to support new, market-based consumer demands.

The fundamental market structure had transformed see subsequent diagramsand Kodak — along with many other traditional film makers — wants a share of the end user market.

With over half of the traditional razor blade financial model rapidly disappearing with the secular decline in film, the new post silver halide world depends on convincing the mass market to print hard copies of digital photos. Memory stick Printing - Digital mini-labs - Online services - At home: At key resources and capabilities in eastman kodak most promising, Kodak has invented a new discipline in an attempt to reconcile the RBV and MBV in the form of high risk minilabs and kiosks in order to diversify operations through applying a core competencies in paper and to some extent printing to the new market Should Kodak change focus?

The firm has bent over backwards in an attempt to change identity to something that it may never become. As an ancient Samurai teaching explains, I have learnt not how to defeat others, only how to defeat myself38 it will be important for Kodak to recognise — and address those weaknesses. The risk is that even if remedying the change to digital is successful, it may never be able to compete against those whose capabilities are naturally orientated towards the digital age.

The RBV and MBV pose fundamental questions as to how Kodak should meet these new challenges through by building new capabilities, or whether the firm should stick to core competencies historically developed in film and paper and deliver in those — albeit shrinking — but highly specialised markets. Whilst the DOP stresses that relationships with external organisations should be kept to a minimum under strict market conditions, the EOP demonstrates the importance of building relationships in a networked environment — and encourages businesses to consider the value brought from alliances and joint-ventures through to considering mergers and acquisitions with other similar, or even dissimilar firms in the marketplace.

Whereas this co-operative strategy has the ability to transform external companies into embedded organisations along blurred or even open boundaries, the independent discrete organisation emphasises a strictly narrow and opportunistic stance39 that advocates firms only act independently and only interact with outside organisations under formal contractual agreements. Proponents of this perspective suggest argue that collaborative arrangements are always second best to working independently, and that even under certain conditions, where a weakness might force a firm to chose an alliance, it is always a tactical necessity, and never a strategic preference.

  • This promotes effective and efficient performance;
  • When effectively done, this will enable it to emerge stronger.

These sweeping strategic decisions, along with smaller scale joint-ventures in the marketplace are aimed at building new capabilities that can create value through mutually beneficial symbiotic relationships.

The DOP view however, questions the value created through these strategic alliances as they depend wholly on the ability to generate presumed synergies — which for as many as half41 of these ventures can be negative.

The business has been busy in an attempt to radically reorganise and develop new capabilities in-house through acquisitions and divestments. Unless the company takes a good Later that year Kodak acquired the image look at itself, it will never know who sensor business from National Semiconductor, to partner with.

In an another form of embedded organisations, Kodak, Fuji Photo Film and Konica Minolta Photo Imaging formed a picture archiving Kodak and sharing standard group aimed at the preservation of digital photos and motion images on CDs, DVDs or other media at the end of September Eastman Kodak, Datamonitor www.

Key resources and capabilities in eastman kodak

However, these eager — and almost rash changes have had a price. Not only has this dented cash-flow and dampened further appeal by investors, but it is characteristic of the injudicious approach to catching up in the marketplace.

Key resources and capabilities in eastman kodak

Unless the company takes a good look at itself, it will never know who to partner with. A clear paradox faces many organisations on how they should run business across borders. Many questions arise over a number of factors — from how businesses should distribute and control resources to the key resources and capabilities in eastman kodak of products offered between culturally diverse consumers.

Conversely, the International Diversity Perspective IDP validates the importance of remaining individually dissimilar by allowing organisations to be separate through maintaining their own locally unique identities in an effort to provide a customer tailored responsive approach that ultimately builds a stronger organisation through cultural diversity. Against a backdrop of increasing integration through international regionalisation and the liberalisation of markets around the world, many organisations have been quick to jump on the globalisation bandwagon, allowing them to exploit the cost savings that result from economies of scale.

The cost savings have arisen from a number of sources — by centralising global headquarters to networking production and synchronising transportation across continents, or even building a singularly strong global brand that is instantly recognisable in the most disparate of locations. Whether or not companies should correctly pursue an agenda of globalisation remains to be seen. Although there are clear benefits to the standardisation within internal functions of a 47 Porter, M.

Levitt after his identification of our global similarity in needs and desires49 that cut across borders. There May Still be Light at the End of the Shutter Despite continually releasing poor financial forecasts, Kodak has managed to keep afloat by hanging on to the traditional razor-blade model of analogue technology.

In the computer world, no one company does it all. The key now is whether Kodak will recognise this reprieve and build a global strategy that can continue to exploit silver-halide technology, whilst getting the rest of the firm in shape to address the changed market in the West.

Kodak is an example of repeat strategic failure — it was unable to grasp the future of digital quickly enough, and even when it did so, it was implemented too slowly under a continuous change strategy and ultimately it did not fit coherently as a core competency.

  • Whereas this co-operative strategy has the ability to transform external companies into embedded organisations along blurred or even open boundaries, the independent discrete organisation emphasises a strictly narrow and opportunistic stance39 that advocates firms only act independently and only interact with outside organisations under formal contractual agreements;
  • Therefore, reorganizing its business, under Chapter 11 bankruptcy provided an avenue to protect its working capital as it sought to complete its transformation into digital platforms;
  • Strategy needs to take account of both the requirements of the firm's external environment and the firm's own resources and capabilities the difficulties faced by eastman kodak and olivetti in adapting to radical technological change within their markets point to:

Three facets of strategy — process, content and context have been addressed in this study in relation to the business operations and strategic decisions made by Kodak.

Together these have provided a holistic view of what went wrong at Kodak and why, and how strategy can and should be applied in the future. This study also recognises the importance of strategy outside the constraints of implementation and confirms the significance and criticality of maintaining strategies that are naturally dynamic. Global Brand Scorecard Reuters, retrieved 10th Decemberwww.

Eastman Kodak, Datamonitor Dyer, J. The contribution of archetypes. Academy of Management Journal, Kodak Website; available at www. Types of organizational change: From incremental improvement to discontinuous transformation.

Leading organizational transformation pp.

Case Analysis: Eastman Kodak in 2012

Discourse, organizations and organizing: Human Relations, 53 9: Academy of Management Review, The Cornerstones of Competitive Advantage: Strategic Management Journal, Journal of Management Studies, 24 6: Continuity and Change in ICI. Basil Blackwell Pettigrew, A. Why search for a new paradigm? Professional papers and materials Inkjet photo paper Thermal printer media Chemistry: Photographic chemicals Digital Products: Professional digital cameras Digital photo printers Lab digitisation products Professional photoCD Medical imaging products: Colour management and proofing Press, plates and printing systems Data management and storage Document management Business and government products: Maintenance services Online support Support telephone services Service agreement Top Competitors The following companies are the major competitors of Eastman Kodak Company: Fuji Photo Film Co.