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George Eastman founded Kodak Company in 1888 with the motto “you press the button, we do the rest,” and designed a simple camera that consumers could use in making photography simpler (Fandel, 2007).
The Eastman Kodak Company has been focusing on photography and has currently added the use of technology in combining images and information in order to alter the ways through which businesses and people communicate.
By 1879, London had become the center of the photographic world such that by 1894, the Eastman Dry Plate and Film Company went underway.
The Company has built its foundation on four key principles namely focusing on the customers, executing extensive advertisement, massive production at minimum costs, and enhancing international distribution (Fandel, 2007).
Later, Eastman added the following policies: strengthening growth and development through extensive and continuous research, treating employees fairly, and profit reinvestment for building and extending the business.
The high rate of growth that the Company witnessed made the management use the principle of large-scale production in order to meet all the customers’ needs. The Company also witnessed massive expansion in 1880’s.
For example, it constructed the Harrow Factory in England and established numerous outlets in Italy, Japan, Germany, France, and other European nations (Fandel, 2007).
Fujifilm on its part has been producing photographic films since its establishment in 1934. In addition, Fuji Photo Film Company Limited has diversified its services into new markets hence has been able to build its presence in the entire world.
For instance, in 2006, it transformed Dimatix and renamed it to Fujifilm Dimatix and in January 2013, it established its subsidiaries in Colombia and Panama.
Fujifilm has expanded its services extensively hence becoming an innovative leader in different business fields such as graphic arts, healthcare and optical devices.
This Company believes in using proprietary technology in providing first-class services and products to consumers.
The core reason for operating the business is enhancing the quality of life people in the entire world. Fujifilm focuses on maintaining its sustainable activities in order to realize a society where people’s needs are fully satisfied.
The two companies believe in the influence that continuous innovation has on their operations. For example, Kodak focuses its research on leveraging scientific understanding as a way of comprehending how technologies for film and photographic products operate.
It has worked towards making photography process extremely convenient as a pencil. In 1992, the company introduced a writable CD for its customers.
This device has enabled consumers to store their data such as images, X-ray images, and songs. Kodak used a centralized approach of managing its operations where the management had the final option of whether to adopt the innovative idea or not.
Fujifilm has also made tremendous strides in the innovation path. This Company remained flexible in the innovation field such that by 2010, it overpowered Kodak -the all time Photographic and Camera Company. Fujifilm has been open to new inventions as opposed to its rivals.
For instance, Fujifilm learnt of the probable impacts of the digital age on their analog photographic system and steadily changed to digital photography. The two Filmmakers companies have enjoyed almost 100% monopoly in their home countries, with Kodak in America and Fujifilm in Japan.
The long-time rivalry was intense in the 1990s when Japan and America had trade restriction issues. Kodak was able to keep Fujifilm products off the American market. Notably, when the digital photography came into action, the core businesses of the two companies became obsolete.
However, Fujifilm capitalized on other sectors and built solid profitable businesses, as Kodak remained reluctant to act. Markedly, in the same rough year, Fujifilm managed to make profits of $12.5 billion to Kodak’s $210 million.
On the other hand, Kodak hesitated on accepting the changes in the technological field. The hesitation made the company file for bankruptcy, as it could not compete in the digital market. Fujifilm management process focused on diversification in electronics and healthcare operations.
In Photography and Camera Industry, the Kodak Company of 1900s is comparable to Google of today. However, the rigidity within the management to accept price changes in their services and products made the competitors acquire competitive advantage over Kodak.
Kodak had dominated the industry and did not expect any competition within the industry. This management style is also the cause for slow acceptance for the modern technological applications within the photographic industry (Daft & Marcic, 2010).
Fujifilm had a vibrant and flexible management team that has remained open to accept any technological services that may make them gain competitive advantage over their competitors.
For example, the company re-engineered its films to be compatible with LCD panels for electronic devices like televisions and computers. Even though the advancement to digital photography was gradual, Fujifilm restructured its services and ventured in new business fields.
The company has used over ¥600 billion in acquiring healthcare institutions. In 2000, Fujifilm acquired Toyama Chemical Company at $1.4 billion. The diversification option that Fujifilm adopted has enabled it to make profits at a time when the core business is recording losses.
The company targets to grow by over 30% at an operating profit of ¥185 billion for the 2014 fiscal year. The change of focus at the Fujifilm Company enabled it to thrive at a time when its competitor like Kodak made massive losses. Kodak on its part had remained in the forefront for a long time.
The Quality Policy has guided the company towards success and it has strived to use effective planning measures to improve its performance and the formal system of management.
In addition, the company has been aiming at surpassing the needs of its customers and has been able to increase its presence in the entire global market.
The slow nature of Kodak in adopting new options like diversification is attested to the executive mindset where the management suffered from a mentality of perfect products as opposed to quick high-tech products.
The management also failed to read the trends of the newly emerging markets in China where consumers moved directly from no-camera to digital cameras hence not following Kodak market strategy of purchasing films first.
Fujifilm benefited from this poor strategy by Kodak and made over 55% profits in 2000.
Kodak has remained committed sustaining a safe environment and protecting the health of its employees. Under the Employee Health and Safety, the company has the goal of preventing injuries on its workers.
Kodak has been liaising with philanthropists to assist local communities in Education programs. Kodak in collaboration with the Democrat and Chronicle sponsors the African American History Supplement as a way of appreciating the culture and contributions to America.
The company has considerable respect for the ecosystem and the effects of its products on the environment. The move towards social responsibility made Kodak products become household names in America in the 1900s hence improving its profitability to $900 million in 1994.
Fujifilm Group has well-structured goals on Corporate Social Responsibility (CSR). Some of the divisions include the Green Policy, Biodiversity Guidelines, Social Contribution Policy, and Occupational Health and Safety Policy (Daft & Marcic, 2010).
On the Social Contribution Policy, the company works together with the local communities in the sectors of education, environmental conservation, health, and sports.
Fujifilm involves its employees in communal cleanup services as a way of training the local communities on the significance of a clean environment and appreciating them for their support.
Environmental protection is a global concern that affects all businesses and the involvement of Fujifilm Group improves its image among the consumers.
Further, involvement in social responsibilities and ethical practices increases the safe environmental management practices among the public who will in turn continue purchasing products.
Social responsibilities empower citizens to engage in proper waste management practices hence minimizing chances of improper disposal of the company’s wastes.
The management at Kodak Company Limited has built its reputation on ethical conducts. The first filmmakers company has not placed itself properly in adapting to the new market conditions.
For example, the emergence of smartphones that double as cameras caught Kodak unawares and almost closed the camera-making firm. Again, the replacement of films with digital photography found the company off-guard.
The company’s employees and share price has decreased tremendously since 1990. For instance, the number of employees has gone down by over 85,000 between 1997 and 2012.
Clearly, the introduction of smartphones as replacements for cameras and digital photography for films has rubbed off the company the wrong way (Mintzberg, 2009). However, the management at the Fujifilm Company remains at strategic state in adopting any change in the market.
For example, the digital change in photography in the early 80s profoundly affected the operations of the company. However, the management switched large amounts of money from the film and camera business to other fields due to the changes in the market conditions.
This strategy proved profitable since the entire film and camera business has continued to face difficult times thus recording losses in long-term perspectives.
Moreover, Fujifilm involved itself in job cuts during the global financial crisis of 20008/2009. The moves proved helpful since the company was able to save $3.3 million.
The Kodak Company Limited should adopt the marketing strategies discussed below in order to be flexible in the current dynamic market. The constant changing market conditions require businesses that are also flexible in their operations.
Firstly, Kodak should diversify its services in other fields like electronics and medical. In this manner, market changes in one field will not affect the entire business.
Secondly, the company can adopt a cost-cutting strategy as a way of keeping reserves that can be useful in case the market conditions are not favorable.
For instance, the reserves can assist in meeting some necessary expenses like employees salaries when the consumers buying powers goes down (Mintzberg, 2009).
The third option involves maintaining only half of its employees on a permanent basis while leaving the other half on contract.
This approach will enable the company to revoke the tenure of employees who are under contract in case the market conditions prove unfavorable. The move will assist the company to continue operating as it will have minimized operational costs at the right time.
References
Daft, R. L., & Marcic, D. (2010). Understanding management (7th ed.). Mason, Ohio: Cengage Learning.
Fandel, J. (2007). George Eastman and the Kodak camera. Mankato, Minnesota: Capstone Press.
Mintzberg, H. (2009). Managing. San Francisco: Financial Times Prentice Hall.
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