6.0 SWOT Analysis of Eastman Kodak 6.

1 Strength
Kodak has more than 100 years of history in photographic film industry. This history has brought about the benefit and also the strength of the Kodak brand name and Kodak's worldwide distribution network. Kodak has its own international distribution network. In the past, when Kodak's focus was on the camera and photo developing business, it made a strong distribution network, which helped to maintain the sales volume by distributing to retailers and it also helped to introduce the new products to customers. A strong customer base was also built, which includes a huge amount of target customers who changed from the traditional camera to the digital camera. List of Strengths:

Many products lines

Broad market coverage

Manufacturing competence

Brand name reputation

Diversifying its product lines depth and width

6.2 weakness
A key weakness of Kodak was its ability to bring its technology to market. The product development of Kodak was targeted on the high-priced products, which were used in professional markets. It reflects Kodak's lack of concentration on the consumer market and therefore a loss of money in this market. Promotion is another weakness, when Kodak launched a new product, there was lack of promotion. List of weaknesses:

Poor marketing plan

Loss of corporate control

Growth without direction

6.3 opportunities
Due to Kodak's successful history and good reputation they have the ability to easily obtain government contracts. According to the Kodak official website there are six services departments: Consumer Imaging, Digital & Applied Imaging, Entertainment Imaging, Health Imaging, and Kodak Professional and Document Imaging. These departments give Kodak the opportunity to move into government and big business ventures. These ventures could build an incredible professional image for Kodak and by word-ofmouth could create and promote products to other large businesses. This image can also be transferred down to the more traditional consumer. List of Opportunities:

Expand core business

Exploit new market segments

Widen product range

Diversify into new growth business

6.4 Threats
The threats mainly come from competitors. There were 45 digital camera manufacturers producing more than 100 models priced below $1000 in 1997. Kodak produces various types of products, but their competitors also produce these products. For example, in film production and digital cameras Fuji is the major

competitor. In the photo-printer category, Hewlett-Packard is the main competitor. The digital imaging business is an intensive capital business. Investors need to invest a lot of money into research and development. . Unfortunately in the photo equipment industry it is difficult to differentiate from your competitors. When a company launches a new product with special features, other companies can easily and quickly imitate and/or copy this new product and its special features. List of Threats:

Attacks on core business

Increase in domestic and foreign competition

Change in customer tastes

Risk in new product Increase in industry rivalry

Slower market growth

Read more: http://www.businessteacher.org.uk/free-business-essays/a-case-study-of-kodak/#ixzz29uwmOZlJ

Strengths * Cost advantage * Asset leverage * Effective communication * High R&D * Innovation * Online growth * Loyal customers * Market share leadership * Strong management team * Strong brand equity * Strong financial position

* Supply chain * Pricing * Real estate * Reputation management * Unique products Weaknesses * Bad communication * Diseconomies to scale * Over leveraged fiancial position * Low R&D * Low market share * No online presence * Not innovative * Not diversified * Poor supply chain * Weak management team * Weak real estate * Weak, damaged brand * Ubiquitiouegory, products, services Opportunities * Acquisitions * Asset leverage * Financial markets (raise money through debt, etc) * Emerging markets and expansion abroad * Innovation * Online * Product and services expansion * Takeovers Threats * Competition * Cheaper technology * Economic slowdown * External changes (government, politics, taxes, etc) * Exchange rate fluctuations * Lower cost competitors or imports * Maturing categories, products, or services

* Price wars * Product substitution

SWOT ANALYSIS
The analysis below puts the finger on what Kodak is all about: a company that carries its former glory like a burden, unable to free itself from the shackles of Eastmans legacy. I. Strengths

- Century-long experience in the traditional photography business - Household brand name - Highly valuable brand equity - International presence - Strong distribution channels - Huge financial resources

II. Weaknesses

- Lack of long term commitment to its SBUs - Core rigidities ingrained in the company - Company culture hindering strategic changes - Inability to translate innovation into marketable products - Lack of digital culture and expertise - Inability to integrate acquisitions

III. Opportunities

- High growth in digital imaging demand (products and services) - Emerging markets are ripe for Kodaks existing product portfolio

IV. Threats

- Industry saturating with new entrants and incumbents - Shrinking profit margins in the digital SBUs

- Consumers progressive abandon of analog photographic solutions - More experienced competition in the digital field

Challenges are numerous for Kodak and it is currently not in an ideal position to overcome them.In the next segment well see how Kodak could take a completely different path to success in differentiating itself and in leveraging its current competences to enter new markets

SWOT

Strengths - Long years of experience in the photography business - Capable of producing highly marketable digital cameras - Has a strong management team - Strong brand name

Weaknesses - Tend to invest greatly on ineffective business strategies - Have just decided to venture into the digital segment, making its experience for this sector limited - Have lost billions due to strategic failures and economic changes

Opportunities - booming demand for digital cameras can support Kodak's objective to become a digitally-oriented company - digital photography industry is expected to grow up to 26% until 2012

Threats - Major competitors and new entrants - Emergence of substitute products - Economical force - Requirement for substantial capital investment