1. KODAK vs FUJI
a battle for global market share
Section C – Group 8
Abhishek Anand
Kunal Ahuja
Nihit Jain
Sanjay B K
Vaibhav Kukreja
Vaibhav Sathe

2. Introduction
Analyzing Competition
Market Defense
Market Expansion
Expanding total market
Kodak Today
Recommendations

3. 1997
EASTMAN KODAK COMPANY
USA Market Leader – 70%
Worldwide share – 44%
Japan share – 7-9%
Pioneer of inexpensive cameras & easy to
use films
FUJI
Japan Market Leader – 70%
Worldwide share – 33%
USA share – 17%
First to introduce one time use cameras

4. SPONSORSHIP WARS
FUJI film sponsor of 1984 Los Angeles Olympics
Strong foothold into US market
Kodak sponsored ABC TV broadcast
LEGAL WARS
Kodak Complaint under US Trade Act, 301
Antitrust allegation against Fuji
Fuji rebutted blaming mismanagement of Kodak
WTO rejected Kodak complaints as baseless

5. PRICE WAR
Fuji cleared excess inventory at lower price sparked the
Price War
Fuji experienced strong market growth
Kodak did not intend to reduce prices initially thereby
letting Fuji gain market share
American consumers preferred Fuji as long as it was
cheaper
80
60
40
Kodak
20 Fuji
0

6. Strengths
Direct selling and contact Slow response to pricing
with distributors and strategy
retailers (US)
Effective division into Ineffective management
SBUs of human resources
Growth and presence in
markets outside Late response to
US, reducing dependability competition
of profits on the US
market
Online portal for receiving
print orders
Strategic location of
Weaknesses
business near talent pool
e.g. Software business in
Silicon Valley

7. Strengths
Competitive low cost
advantage Low payouts to employee
Strong promotional &
branding strategy through Neglecting profitability
sponsoring
Efficient financing More focus on long term
Close ties with Distributors growth
in Japan
High Operational
efficiency, high revenues per
employee
Strong focus on R&D
, allocated 7% of Sales
Differentiated product line
Weaknesses
up (first mover in OTUC )
Web support for printing

8. Opportunities
Competitive low cost US photo industry
Market growth potential in unstable and unpredictable
developing countries of Subtle change in US
Indonesia , China, Brazil & consumer attitude with
India acceptance to foreign
Concentric diversification products, huge trade
into Digital imaging space deficits without any
Technological advancement protectionist legislation
and increasing application Decreasing margin for
in different fields leading manufacturers
wider opportunity for Digital Imaging is an
innovation increasing trend
Increasing consumption of Strong US dollar is
films by marketing the idea eroding kodak's export
of photography as fun advantage
Threats

9. Market Broadening
Focus on R&D – embracing digital
technology
Concentrating on getting non users
Market Diversification
Concentrating on emerging economies –
Brazil Russia India China (BRIC)
Developing economies still used Film and
not digital cameras

10. Niche marketing – Price conscious customer segment
Cheaper than Fujicolor Super G., but higher profit
margin.
No advertising expenditure
Limited presence and quantities
Value packs, multiple speeds
Some Cannibalization its own higher products
But Retaining customers

11. Retreat in 2002 due to low demand
Re-entry in 2004
Acquisition of Chinon
Tackling Issues in Distribution channels
Launch of new products
Primarily marketing Print Systems
Secondarily marketing Cameras, films
Kodak DX7590

12. Investing in infrastructure and world class
consumer centric products
Promoting Photography as a fun activity
Kodak Moments
Kodak Moment of the month
Photo Cards, Gifts and Books
Bringing more people to take
photographs

13. Touchscreen cameras
Regaining Momentum Video cameras
Expansion in Digital products Digital picture frames
Ink-jet printers
Continued decline in traditional products
Digital Camera competition from
Sony
Nikon
Cannon
High End Smartphones
Apple
HTC
Online Photo sharing service
Google Picasa
Flickr

14. Products/Services
Provide cheaper online print services
Tie-up with companies like zoomin.com
Smart Phones apps to order print online
Kiosks at Mall for instant photo printing
Place
Make available online services in emerging markets
Promotion
Promote OTUC in tourist spots, malls