Managing Eastman Kodaks New Environment Case Study

Managing Eastman Kodaks New Environment - Case Study ExampleThe appointment of CEO Antonio Perez, in 2003, with his commitment to the worldwide sack of Kodak from a business based on film to one based primarily on digital technologies (Marcial 2007) may well be the suffice to Kodaks woes. willing Eastman Kodak under the leadership of CEO Perez succeed to manage its new environment According to Michael Porters five forces model of constancy analysis, the points to consider are (1) Rivalry, (2) Threat of Substitutes, (3) emptor Power, (4) Supplier Power, and (5) Barriers to Entry. (QuickMBA 2007)Under Perez, Kodak realized that the company needed to reinvent and reposition itself. It was no longer the technological giant of the photography, film and film processing patience, because that industry was in danger of extinction with the changes in the technological environment and consumers appreciation of those changes. Perez steered Kodak into entering the digital photography market and faced fierce competition from Sony and Canon. (Marcial 2007) Kodak launched EasyShare, its family of digital cameras, which was widely praised. But it failed to anticipate how fast these digital cameras would become commodities, with low profit margins, as every competitor raced into the market. Perez had counted on rising demand for conventional photography in China to slow the fall. But China went digital as fast as everybody else While blazing growth of camera gross revenue has helped blunt the effects of Kodaks fast-fading film revenues, it hasnt replaced the rich profits of the film business Perez realized that he had championed a dramatic change only to find it wasnt the compensate model for turning the company around. (Hamm, Symonds 2007) Perez had succeeded in addressing its rivals in the digital camera market and even surpassed targets in camera sales but this was not the answer to Kodaks problems. According to Porter, the next force to contend with is the threat of substitutes. (QuickMBA 2007). In Kodaks case, even with its digital camera rivals, it did not have to contend with threats of substitutes but rather, current industry players had to contend with Kodak, as did Sony and Canon in the milieu of digital cameras. And since digital cameras did not prove to be the answer that Kodak was looking for, CEO Perez, with his expertise gleaned from Hewlett-Packard, want to threaten yet another in Kodaks quest for answers to its problems.According to Symonds in a Business Week article, printing could be Kodaks brightest hope for the future with its $2.1 one million million investment in the commercial printing market. And its technology could prove nearly as important an evolution in printmaking as movable type -- allowing for mass customization on unprecedented scales. (Symonds 2006) In this arena, again Kodak had to face tough competition from leaders Xerox and Hewlett-Packard, but Kodak has pulled together a broader portfolio than rivals by pi cking up everything from the software and plates printers need to get a job started to the presses needed to complete it. (Symonds 2006) So, it wasnt so much that Kodak had to deal with the threats of substitutes but rather it had to work on adequate a potent threat itself to dislodge