Kodak at a crossroad

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  • Pages : 13 (3021 mots )
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  • Publié le : 10 octobre 2010
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Kodak at a Crossroads
Strategic Management Fundamendals
September, 2010

I/ Covering Letter 3
II/ Executive Summary 4
III/ Challenge Statement 5
IV/ Analysis 6
V/ Alternatives 10
VI/ Recommendations 11
VII/ Implementation 12
VIII/ Contingency plan 13
IX/ Bibliography 14

I/ Covering Letter

Report of Consultancy Group
To the Board of Directors andShareholders of
Eastman Kodak Company

In our opinion, the accompanying analysis and recommendations appearing on 14 pages present fairly, in all material respects, that the position of Eastman Kodak Company (the Company) and the results of its operations and its cash flows could be characterized as unstable and indefinite with several problems. These problems might be solved in the nearest future.This is the responsibility of the Company’s management team; our responsibility is to express an opinion on this strategy and other business solutions based on our analysis. We conducted our research of company situation in accordance with strategic management standards generally accepted in ESC Rennes School of Business, which require that we plan and perform the report to obtain reasonable andsufficient solution of the company’s problems.

Our report includes analysis of the company situation, defining the challenges, stating the alternatives and recommendation of the possible actions to be implemented by company.

We strongly believe that the implementing improved business model or the introducing new effective company strategy could be the most useful practice for the Company inthe present situation on the market. Maintaining leadership in photography industry and developing new company vision for Kodak as a strong brand with long history are significant.

We consider our recommendations to provide a reasonable basis for your business solution.

Coralie Rebillard, Elizaveta Romanishina, Yannis Treffot, Matthieu Vernet, Sophie Winter

ESC Rennes School of Business,Rennes, France
II/ Executive Summary

In this report we have completely analyzed the company’s position in the market and its business environment, then defined the current problems. Regarding the tendencies in digital technology markets, economic situation and company’s mission statement we have discovered several primary issues for Kodak. The first one is that the Company decreases in salesfor the past few years because of its film-based technology segment and inefficient digital-oriented strategy. In fact Kodak has decided too late to focus on digital technology to be able to compete with other competitors for consumer needs. Thirdly the Company’s management team was not able to hit target and implement an appropriate strategy and increase profits for the last period of time.
Werecommend to the Board of directors to achieve the goal of becoming a market maker. In order to that the Company has to implement the following strategy: focus on Research and Development of digital technologies, invest in marketing strategy and to become a leader in developing countries. Moreover it has to reduce its costs on film-based technologies and to concentrate on its digital imaging servicesby expanding online services and printing services. Kodak has to support its environment-friendly status and to keep on taking care of the nature. Health segment is another vitally important segment of the Company’s business as well. It guarantees Kodak’s activity diversification, gives reasonable additional returns on investment and provides good image of the Company to all the existing andpotential customers. Therefore Kodak’s priorities might be keeping the 2nd biggest market share in digital imaging market, saving its costs and stabilizing revenues and entering into new markets as both digital and traditional photography leader. According to this we recommend to reshape its business model and adopt price policy.
Firstly, Kodak is strongly advised to define clear objectives,...
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