1. Polaroid-Kodak Case Preparation Questions:
Why has Kodak entered the instant camera business?
How serious is the threat to Polaroid?
What should Polaroid do?

2. Competitor Analysis For each of Polaroid and Kodak: Goals Assumptions
Strategic resources
Stakes in the instant market
Position and motives vis a vis a battle

3. Market Signals
What market signals were used by Kodak surrounding its entry into the instant market?

4. Game Theory Formulation
Kodak’s choices
. Go aggressively for a large share (fight)
. Accept a modest share (dètente)
Polaroid’s choices
. Aggressively protect its dominance (fight)
. Yield Kodak a substantial piece of the market (dètente)

5. Strategic Outcome Matrix

6. Game Theory Analysis
Interpret Kodak’s move in terms of fight or dètente--which is it?
Analyze the options available to Kodak. What will happen if it fights? dètentes?
What choice options and potential costs/benefits are available to Polaroid now that Kodak has mode it’s move?