The strategic outlook of Eastman Kodak Company relative to Kodak Philippines, Limited

• Main Author: De Las Alas, Darius Alinea
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Photography industry > Philippines; Kodak Philippines; Lmtd; Eastman Kodak Co.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3950
• Institution: De La Salle University

Eastman Kodak Company is at a turning point in its corporate life. The company's bread and butter is being pushed to obsolescence. The upsurge of digital technology is making Kodak rethink its strategy, especially when investors and customers are influencing it. The shift to a totally digital format will potentially cut the demand for the traditional format of photography. The perception is, in the distant future, pictures will no longer be printed on photographic papers rather they will be stored in mini-disc that are insert into electronic photo albums. As a marketing company, how can Kodak Philippines, Limited (KPL) support the effort of Eastman Kodak Company? The framework used in analyzing the situation of KPL involves Michael Porter's Five Competitive Forces and Hamel and Prahalad's strategic intent. The combination of the two theories is needed to assess the current leadership position and at the same time formulate the future market. Porter's views concentrate on analyzing the current position of the company and finding out the advantages that the organization should use while Hamel and Prahalad's theories will shed light on the process of creating an industry. Kodak has been recognized as being the first to ever mass-market cameras and for introducing the roll of film. Kodak was able to market its products globally at such an early stage that had gained considerable value in its brand. Brand recognition for Kodak is very high compared to its competitors worldwide. Kodak Phils., Lmtd. is the leader in the local market and the organization is capable of responding to the challenges of that the competition may bring. However, it must be understood that KPL is not in the best position to catapult Eastman Kodak into the digital wave for the simple reason that its function is to market the products that the Head Office is producing. The main strategy for Kodak Phils. must remain to be the maximization of revenue and minimization of operating costs. The condition in the Philippine photographic industry will be able to support this strategy because competition is behind market share, Kodak has the brand power, the distribution network is set and the possibility of other competitors is remote because of the high investment needed to enter the business. This will support the bigger move to gather continuous source of funds to support the research into the digital format. The shift in format will be supported by KPL's marketing effort in term of customer awareness and new product introductions. This necessarily means that Eastman Kodak Company will not dissolve Kodak Phils., Lmtd. and move to the exclusive distributor model, as most local competitors. Eastman Kodak should, however, explore the possibility of tapping the skills of the labor force in Asia. The Philippines is one of the countries with vast skilled labors capable of understanding the goal to digitize.