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Kodak Term Papers
Kodak is engaged in all aspects of the imaging industry, which includes the production of traditional cameras and film as well as the development and production of new digital imaging technologies for both professional, medical and personal use. The firm’s core business lies in the sale of traditional cameras and film products, which produced an estimated $8.5 billion in global sales in 2001. Although the firm has a position of global leadership in this market, the gradual consumer trend toward electronic imaging has resulted in a lack of growth in film sales. As a result, the firm has begun exploring alternative strategies in other imaging technologies in order to meet future consumer needs and maintain its share of the imaging market.
The size of the market and the market share of Kodak’ competitors largely depends on the specific product line and the geographic area. In the traditional film market, which continues to represent the largest share of the imaging segment, consumer purchases of film estimated at approximately $50 billion annually on a global basis. In the United States and Europe, Fuji, Kodak’s primary competitor, commands approximately 20% of the market share, and focuses on a price strategy and distribution through mass-market retail outlets. In emerging nations such as China and Southeast Asia, however, Fuji’s market share rises dramatically to the 70% range, which is largely attributable to the firm’s price strategy. In addition, Fuji has achieved almost total dominance of the very lucrative Japanese film market due to protectionist legislation in Japan that inhibited the import of foreign film products prior to 1999.
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