Strategic Management of Technology
Eastman Kodak Company -- Management, Technology -- Management, Strategic planning, Disruptive technologies
This paper reviews Kodak strategic management of technology and attempts to analyze the competitiveness of Kodak’s business environment by Porter’s five forces and SWOT analysis. The paper discusses the historical performance of Eastman Kodak as a market leader and challenges that company faced to respond to digital photography.
To identify Kodak’s strategic gaps this research conducted literature review on the company’s historical changes and transformation and Kodak’s current situation. Porter's five forces and SWOT analysis shows that the main problem for Eastman Kodak was the transformation to digital imaging. With the growing trend for consumers to view their photograph digitally, the company invested heavily in building digital capabilities and launching new products but failed to generate income.
According to the analysis of the Porter’s five forces; Kodak faces a very high intensity of competitive rivalry, moderate threat of new entry as a lot of capital is required to join the industry, high bargaining power of buyers as wide range of products are available in market and low bargaining power of suppliers. Most importantly threat of substitute products and services is high as companies in the sector work hard to match their specifications, pricing and other characteristics of the industry. There are less switching costs between substitutes as consumers can switch to different products based on their preferences.
Karami, Nasim, "Review of Kodak’s Strategic Management of Technology. Why Kodak Failed?" (2019). Engineering and Technology Management Student Projects. 2256.