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The intent of this study is to execute an extended analysis of the Eastman Kodak digital picture taking trade name. and finally. to supply a sound selling scheme to their board based on our findings. We do so by analyzing both a macro position of the digital camera industry every bit good as analysing the brand’s history. placement. success factors. and current challenges. We discovered that Eastman Kodak. while one time the unquestionable leader in the movie industry. failed to accommodate to altering technological market tendencies and was left behind the digital revolution.

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Kodak’s unsuccessful response to a major technological discontinuity has resulted in a profound loss of market portion and profitableness. We have developed a market program for the desperate province Kodak presently finds itself in. 1 that will try to reinvigorate Kodak’s trade name as a premium name in digital picture taking by returning to its traditional values and competences. While the company presently operates through three distinguishable sections: Digital & A ; Film Imaging. Health Group. and Graphic Communications. we have narrowed our range to concentrate chiefly on the digital movie section as we felt that this country has the most possible for betterment in the close hereafter.

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The Digital Film Industry

Beginnings of the Market

The development of the digital camera market mirrors the development of the engineering and inventions environing picture taking itself. Throughout the 19th century the motives behind inventions and finds in picture taking surrounded the velocity and affordability of making an exposure. Some of the earliest exposure took up to eight hours of exposure to finish. and were frequently contained on onionskin and expensive stuffs. that did non impart themselves to being easy shared. It is apparent that the desire to rapidly make and portion still images existed more than a century before modern digital cameras were of all time created.

Early on efforts at digitising images for storage remained mostly in the picture imaging section. and really small focal point was put on the engineering for still images. The advancement that was made was characterized by hapless image quality and really hard storage processs. As a consequence. professional lensmans and hobbyists clung to the old procedures of developing movie good into the 1990’s. In world it was the progressively competitory nature of the intelligence media. peculiarly in the newspaper industry that led to some of the more feasible inventions in digital still imaging engineering. It was seen as a competitory advantage for a media mercantile establishment to take. shop. and send images through digital transmittal. instead than wait for a slow development procedure before a image could even be viewed. It is no happenstance that the first commercially available digital cameras were improbably expensive and used about entirely by exposure journalists.

As was the instance with the market. for still cameras trusting on 35mm movie for image development. it was technological discoveries that spurred the growing of the digital camera market. With the development of JPEG file formats in the late 1980’s digital images could be taken and stored on the same device utilizing battery power. Although there are many competitory claims as to who entered the market foremost. Kodak was arguably the first entrant in 1991 with the DCS-100.

The Growth of Digital Photography

The transmutation from conventional to digital picture taking was a entire displacement of engineering that non merely wholly changed the manner companies of this industry operate. but besides the merchandises and services they offered. Advancement in the information and communicating engineerings besides significantly contributed in determining digital picture taking. every bit good as the digital camera itself. Computers were being used to hive away and redact exposures. while cyberspace offered an easy manner to portion and distribute multiple transcripts of the image to different people at the same clip. Furthermore. the construct of a exposure being original was eliminated as extra. unidentifiable transcripts of the image were possible. The cardinal growing phases of the digital picture taking can be summarized as follows.

Steven Sasson ( of Kodak ) invented the digital camera in 1985 in Kodak research research labs. The low operating cost. easy storage and distribution were the major attractive characteristics of this new merchandise. Alternatively of utilizing movie like traditional parallel cameras they were able to hive away the image on internal storage or on rewritable memory cards.

In 1986. many electronic cameras were released by different makers. e. g. . Canon released foremost still video electronic camera. Kodak: 1. 4 million pel CCD. Nikon: SVC. electronic camera with a 2/3-inch CCD of 300 000 pels. Sony: Mavica A7AF still video camera. ( CCD ) of 380. 000 pels which records images onto a 2-inch floppy discs.

The world’s foremost to the full digital consumer digital camera was released by Fuji. with the characteristic that images could be digitally recorded on a removable memory cards. Since so the betterment in camera fabrication has continued over the old ages. as new participants joined the race with the find of new dimensions of digital engineering and its applications. and the demand for new accoutrements. Hewlett-Pakard’s ink jet pressmans became consumer points. Sanyo. Samsung. Olympus besides released new digital cameras. and Toshiba manufactured memory cards. Joint Photographic Experts Group ( JPEG ) created compaction file format to easy reassign digital image electronically.

The merchandises were farther improved with the better apprehension of digital engineering as continued research and costs were well reduced in 1998. taking to exponential rise in gross revenues of digital cameras over the following old ages. ( See Exhibit 1 to see how digital camera gross revenues have skyrocketed since the bend of the century ) .

New professions emerged covering assorted available characteristics of the digital cameras. and cameras were developed for the specific sections and niches. such as recreational picture taking. advertising picture taking. column picture taking. documental picture taking and scientific picture taking.

Digital picture taking is still far from adulthood. as merchandises are continuously introduced or improved though changeless invention. The demand to develop specifications ( sizes. dimensional tolerance for imaging media. and formats for all major users ) and written criterions for digital imagination are realized. developed by American National Standards Institute and International Standards Organization.

Ultimately. the reaching of digital picture taking. combined with the ever-improving capablenesss of computing machines to hive away and expose exposure. and the Internet to portion them helped revolutionise the major client procedures associated with picture taking. Photographs could now be taken by consumers at virtually no cost. who could so take to salvage or cancel their exposures with the push of a button. and make up one’s mind to publish them on a Personal computer pressman or via electronic mail. It is clear so that the industry is about wholly driven by both societal and technological alteration.

Rivals

Overall. the digital movie industry is a extremely competitory 1. An analysis of the forces that determine the long-term net income attraction of this peculiar section would uncover that the industry has: high menace of section competition ( being of several big viing companies ) ; high menace of new entrants ( copiousness of digital picture taking engineering on nomadic devices ) ; highly high menace of replacement devices ( infinite ways to set an image into digital format ) ; high menace of purchaser power ( low distinction degree of most digital cameras ) ; and eventually. high menace of provider power ( cost of exchanging providers for a big digital camera company would be astronomical ) .

Kodak industries and distributes a big figure of different merchandises. chiefly focused around picture taking. The sale of each line of merchandises comes with its ain rivals. However. for the intents of this study. the focal point of the rival analysis will be on cameras. both digital and non digital assortments.

The camera industry had world-wide gross revenues of $ 35. 5 billion in 2010. Given the big value of this industry. it is of import to cognize what portion of the market Kodak’s competitors’ control. A expression at the market for digital SLR cameras. disposable cameras and movie follows.

The universe market for digital SLR cameras is dominated by Canon and Nikon. who held universe market portions of 37 % and 33 % severally in 2010. The staying 30 % market portion is held chiefly by Sony and Olympus/Panasonic. Sony sold 12 % of the world’s digital SLR cameras in 2010. and Olympus/Panasonic had 11 % of the market in that same period. Kodak was merely one of the several rivals who comprise the staying 7 % of world-wide digital SLR camera gross revenues.

Low cost digital SLR cameras have come on to the market and are viing in the same infinite as digital compact cameras. A expression at Kodak’s web site showed merely one trade name of digital SLR camera is being offered by Kodak. Since Kodak is chiefly viing in the digital camera infinite through compact cameras. the displacement in digital SLR cameras to a lower monetary value point does non portend good for Kodak since it increases competition.

Disposable camera gross revenues in 2009 were comprised chiefly of cameras under the Kodak and Fuji trade names. Kodak enjoyed a 52. 9 % market portion in this period. while Fuji held 18. 1 % of the universe market. The bulk of the staying 29 % of the world-wide market of disposable cameras came from private label trade names. who sold 28. 4 % of disposable cameras worldwide. Disposable cameras like any other cameras come in two assortments. parallel and digital. The market for parallel cameras has been diminishing over the old ages. For case. the gross revenues of parallel cameras decreased from US $ 1. 335. 5 million in the United States in 2004 to merely US $ 9. 5 million in 2009. This is a lessening in gross revenues of over 99 % in merely 6 old ages. Although Kodak has kept a prima place in the parallel market. the disintegration of the market for parallel cameras limits the value of Kodak’s taking place in this section.

Kodak has besides kept a prima place in the sale of camera movie. However. this market section has seen a similar autumn in gross revenues as the lessening in the disposable camera market. In this section. Fuji is one time once more Kodak’s largest rival. Kodak’s tagline “Kodak Moments” helps it keep its leading place in movie. but the crisp diminution in the sale of movie and a strong rival in Fuji one time once more limits the value of this prima place. The market for cameras has seen a rise in the fight of one peculiar alternate merchandise that may restrict the growing potency of the camera industry in the hereafter. Mobile phones with cameras built in now form the chief replacement to cameras. Since these devices have many characteristics such as picture. sound. and internet browse. and are comparatively cheap. they represent a existent menace to the camera industry. 80 % of the universe demand for the imagination devices and optical faculties that comprise the cameras in nomadic phones is handled by Panasonic. Sony. Sharp and Konica Minolta. Kodak does non vie in this market.

Other replacements that Kodak will necessitate to vie with are imitative points. Not merely are these points probably to be sold at lower monetary values. they are besides by and large inferior in quality and could harm the trade name of the companies whose merchandises are being forgery.

From this analysis of the current competitory landscape. we can see that Kodak’s most of import rivals in digital cameras are Canon. Nikon. Sony. Panasonic and Fuji. ( See Exhibit 2 for a expression at Kodak compared to its traditional rival. Fuji ) . Customers

The digital movie industry targets a big figure of consumers crossing different sections and demographics. The followers will exemplify who these chief consumers are and which sorts of persons digital picture taking entreaties to. Sections

Digital picture taking is targeted to two major sections ; professional and non-professional consumers. As expected. the demands of these two mark sections are rather different. and organisations in the digital camera industry market their merchandise to appeal to these distinguishable outlooks and demands. Digital camera companies. hence. market their merchandise to these diverse groups and accordingly place farther submarkets and niche markets.

Demographics

In the universe of picture taking demographic cleavage plays really critical function in marketing the merchandise. In this method of cleavage. demographics is of import because customers’ wants. desires. penchants. and uses are strongly associated with demographic variables. Interest in picture taking by and large starts at early age. normally early adolescents. Consumers are non particularly witting about the trade name but want to carry through their intent. However. this is the stage where a perceptual experience of the trade name starts taking place in the heads and acquire stronger and stronger with the clip. After this stage consumers of age 20 to 50 are divided into different groups. Some people adopt picture taking as profession. some use it for their extended touristry wonts. and eventually some take it as merriment and leisure activity and some use it as their demand. This usage depends on their nature. life manner and occupation demand.

Professionals. who adopt picture taking as business or as their avocation. are ever more witting about the quality and success consequences. They don’t want to see that there is no exposure in their camera after any event coverage or after returning from an escapade. They need more dependable equipment with warrant of better consequences because this is their earning beginning. If person is prosecuting picture taking merely for merriment and don’t have passions for the avocation so they will typically non pay as close attending to the bells and whistlings of the merchandise.

In footings of gender. picture taking entreaties to both work forces and adult females likewise. Selling does non by and large aim work forces or adult females. although recent fabrication of point and shoot cameras includes the merchandise in a assortment of colorss for the consumer to take from.

Last. demographics in the digital movie industry relies on the consumer’s income. The major makers of digital cameras have realized this. and typically offer merchandise runing from budget quality. to expensive professional equipment.

Psychographics

Psychology is besides a strong variable to understand consumers. Peoples are different based on their personality traits. psychological science. life manner and values. Psychographic profile could be wholly different within same demographic group of consumers. For illustration. two persons of same age group have same scope of income similar picture taking as a merriment but they have different psychological science. One is more caring about quality with respect to inside informations captured in the images and the other more focal point on the originality of the colors of the images. For this ground. camera makers have produced cameras with a overplus of adjustable characteristics. which can be modified to accommodate the user’s penchants.

Important Tendencies

The wide industry of exposure imagination and cameras has gone through some profound alterations over the past several decennaries. As expected. technological promotions over the past century are the premier drivers of the assorted tendencies this industry has witnessed.

Possibly the greatest transmutation this industry has seen has been the comparatively recent rise of the digital camera phenomenon. Although the paradigm for the digital movie industry began with the development of Sony’s analog-type “Mavica” electronic camera. this merchandise did non derive immediate credence in the market place due to its high monetary value and the deficiency of suited peripherals ( i. e personal computing machines ) . The larger tendency towards digital cameras so was genuinely popularized in the late ninetiess and early 2000s with digital “point and shoot” cameras. of which Kodak participated in at a much later phase than its rivals. With the release of these user friendly devices. digital camera gross revenues increased by 75 % per twelvemonth by 1997 where movie cameras increased by 3 % . At first. the absence of an LCD screen for arranging. hiting. and reexamining intents proved to be a hinderance to the popularisation of digital cameras. Once the LCD screen was introduced. the tendency was ignited. Photographs could now be viewed instantly. and kept or discarded as the consumer desired.

Today. most major camera makers have made the hegira from movie to digital. Canon every bit good as Nikon surprised the universe when they agreed to halt production of most movie cameras. puting another tendency that has continued to this twenty-four hours.

Another major displacement in the universe of digital picture taking was the gradual outgrowth of cameras on nomadic phones. As engineering improved. so did the quality of cameras included with virtually every nomadic device. As expected. this had an impact on the sale of inexpensive digital cameras. as the phenomenon was now available to anyone who had a nomadic device. This tendency continues to this twenty-four hours. with both iphones and Blackberries including high quality cameras with their nomadic devices.

Presently. there has been a resurgence of DSLR cameras. with Canon and Nikon keeping the bulk of market portion. Although it is hard to foretell future tendencies in the camera industry. many market research workers. tendency spectators. and engineering forecasters agree that digital is here to remain. Easy entree to necessary peripherals such as personal computing machines and even pressmans has garnered speedy credence of the digital camera by consumers. The move to digital will stay ; nevertheless. the comparative ripening of the Japanese. North American and European digital camera markets may ensue in repetition purchasers. every bit good as marketing cameras to for late adoptive parents. This could all climax in lower net income borders for some of the universes taking camera makers.

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