BUSI 0000 Presentation Analysis of business strategies and recommendations for its success Group XXX

Outline History & Background External Environment Internal Organization Strategic Inputs A Business & Corporate level Strategies Acquisitions and Restructuring International Strategy Formulation of Strategic Actions B Take Advantage of Its Strengths Follow the Industry Trend Learn from Its Past Failure Recommendations C 2

History and Background Established in 1888 by George Eastman in Rochester, New York Invented world’s first simple film camera, first digital camera (Kodak picture) 3

History and Background Field for voluntary petitions for Chapter 11 in 2012 Just emerged from bankruptcy, and relisted on NYSE November 2013 onwards Exited consumer business and focus on business and commercial printing 4

General Environment Technological –Fast changes in technology 5

External Environment: Past Competitive Rivalry Low Bargaining Power of Buyers Low Bargaining Power of Suppliers Low Threat of Substitutes Low Threat of New Entrants Low to moderate 6

External Environment: Past Rivalry among competing firms –Low –Only few major players in the market Threat of substitutes –Low –At that time there were few alternatives to the film camera Threat of new entrants –Low to moderate –High entry barriers due to high R&D costs 7

External Environment: Past Bargaining power of suppliers –Low –Kodak was vertically integrated, supplied its own materials in many areas Bargaining power of buyers –Low –Few alternatives to the film camera so the buyers did not have much say  Film business was appealing 8

External Environment: Past Competitive Rivalry Moderate to high Bargaining Power of Buyers High Bargaining Power of Suppliers High Threat of Substitutes High Threat of New Entrants Low 9

External Environment: Present Rivalry among competing firms –Moderate to high –Many players in the industry Threat of substitutes –High –Switching costs are relatively low Threat of new entrants –Low –Low entry barriers 10

External Environment: Present Bargaining power of suppliers –High –Many other companies as alternatives Bargaining power of buyers –High –Many other companies as alternatives  Commercial printing business is a tough business to be in 11

External Environment Competitor analysis Present Commercial Printing Companies Film Manufacturers Past Japanese company Manufactured film (high market commonality) Entered the U.S. in 1980s with lower price Others: AGFA, Konica RR Donnelley & Quad/Graphics Inc. occupy the greatest market share Fuji Xerox and Canon, HP 12

Internal Organization Main reason for the past failure -Complacency culture led the failure to recognize the transition to digital age Current - Strong R&D and exclusive patents 13

Outline History & Background External Environment Internal Organization Strategic Inputs A Business & Corporate level Strategies Acquisitions and Restructuring International Strategy Formulation of Strategic Actions B Take Advantage of Its Strengths Follow the Industry Trend Learn from Its Past Failure Recommendations C 14

Business Level Strategy Integrated Cost- leadership with differentiation Broad differentiation Focused differentiation strategy Beginning Introducing digital cameras Current business in commercial printing industry 15

Corporate Level Strategy Present Dominant Business Diversification Related Diversification Past Over-diversifiedMoved from B2C to B2B Linkage was been weakened, not muck value and competency was shared Linkage still needs to be strengthened (?????) 16

Active Acquisitions lumisys, Inc., a leading provider of desktop computed radiography systems and x-ray film digitizers. Bell & Howell Company's imaging businesses Ofoto,Inc., a leading online photography service Encad, focused exclusively on the wide-format inkjet printing industry Kodak made several acquisitions including - PracticeWorks, Inc., a provider of dental practice management software; - 20% of lucky Film Co., ltd., the largest maker of photo film headquartered in China; - laser-Pacific Media Corporation, a provider of post-production services for filmmakers; - Algotec Systems ltd., developer of picture archiving and communications systems; - Applied Science Fiction's Digital PIC rapid film processing technology. -Bought remaining shares of Chinon Industries, a digital camera manufacturer - Acquired The imaging sensor business of National Semiconductor, and formed an alliance with IBM to manufacture CMOS image sensors. - OREX Computed Radiography ltd., a leading provider of compact computed radiography systems that digitally acquire x-ray images. - Former joint venture Kodak Polychrome Graphics -a leading supplier of products and services to the graphic communications market; - Creo Inc.- a premier supplier of prepress and workflow systems used by commercial 2005 printers around the world. The document scanner division of BÖWE BELL + HOWELL, a leading supplier of document scanners to value-added resellers, system integrators and end users The relief plates business of Tokyo Ohka Kogyo Co., ltd., helping expand capabilities for flexographic/packaging markets.

Acquisitions Assessment Consumer Photography Companies Digital Printing Companies Success More Details Healthcare Imaging Companies Failure 18

Restructuring Downsizing Downscoping Short-term Long-term Monetize some non-strategic properties Reduce operation costs Emphasize more on strategic controls over the digital printing businesses leads Kodak to suffer from high risks a loss of human capital

International Strategy International Corporate Level Strategy Global –Standardized products offered International Business Level Strategy Same as home market 20

Outline History & Background External Environment Internal Organization Strategic Inputs A Business & Corporate level Strategies Acquisitions and Restructuring International Strategy Formulation of Strategic Actions B Take Advantage of Its Strengths Follow the Industry Trend Learn from Its Past Failure Recommendations C 21

1) Take advantage of its strength Emphasize its history and root in the US -One of its main competitor Fuji Xerox has its focus in Emphasis on printing on foil, plastic, glass, and metal -Pitch in the court to keep the business -Concentrate on niche market  Printing on glass has become a big trend in Japan and Europe; trend is moving towards North America  Sophisticated technology 22

Recommendation Emphasize its history and root in the United States –Fuji Xerox, one of its competitors is focused in the Asia Pacific region. Kodak can gain geographical advantage by focusing on North America market. Maintain remaining patents –Kodak has recently sold more than 1,000 patents to Apple and Google to save itself from bankruptcy. The remaining patents have potential for Kodak to gain competitive advantage Emphasis on printing on foil, plastic, glass and metal –It has been noted by its pitch in the court for exiting bankruptcy that Kodak holds competitive advantage in printing on special materials. –In addition, there is an increase interest in glass printing – market available 01. Take advantage of strengths 23

2) Follow the industry trend Provide a platform for B2B file sharing -Allowing business clients to store their graphics and freely transfer without security issues -Kodak can make use of its patent for managing assets and metadata as well as displaying image on the screen -Increase demand in cloud file sharing Be aware of the 3D printing trend -3D printer patents will expire in Not necessarily have to join the industry but should prepare to adapt to the change if the change in trend is detected 24

2) Follow the industry trend Opportunities from SMEs Market Share Big corporations’ situation Already have suppliers High switching cost Not much differentia tion 25

2) Follow the industry trend Opportunities from SMEs SMEs’ choices Demand for new suppliers Not familiar with the market Kodak is a big name to them Emerging SMEs Emerging Markets 26

2) Follow the industry trend Opportunities from SMEs SMEs’ choices Demand for new suppliers Not familiar with the market Kodak is a big name to them Emerging SMEs Emerging Markets 27

2) Follow the industry trend Opportunities from SMEs SMEs’ choices Demand for new suppliers Not familiar with the market Kodak is a big name to them Emerging SMEs Emerging Markets 28

2) Follow the industry trend Opportunities from SMEs SMEs’ choices Demand for new suppliers Not familiar with the market Kodak is a big name to them Emerging SMEs Emerging Markets 29 Great Opportunity for Kodak

3) Learn from its past mistakes Do not overdiversify –Unrelated diversification into healthcare and biotechnology –Diversifies its risk, but also increases the range of competition 30

Conclusion Take advantage of its strengths Follow industry trends Learn from its past mistakes  Kodak could shine again 31

Q & A 32