As of Thursday 19 JanuaryKodak filed for bankruptcy protection Neate, and has until to reshape its business and exit out of the bankruptcy plan Business Spectator, Introduction Eastman Kodak Kodak was once a leader Finnerty, and legendary brand in the photographic film industry Associated Press, b.
Rivalry In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive Kodak strategic analysis takers. Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences.
The Concentration Ratio CR is one such measure.
The CR indicates the percent of market share held by the four largest firms CR's for the largest 8, 25, and 50 firms in an industry also are available. A high concentration ratio indicates that a high concentration of market share is held by the largest firms - the industry is concentrated.
With only a few firms holding a large market share, the competitive landscape is less competitive closer to a monopoly. A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share.
These fragmented markets are said to be competitive. The concentration ratio is not the only available measure; the trend is to define industries in terms that convey more information than distribution of market share.
If rivalry among firms in an industry is low, the industry is considered to be disciplined. This discipline may result from the industry's history of competition, the role of a leading firm, or informal compliance with a generally understood code of conduct.
Explicit collusion generally is illegal and not an option; in low-rivalry industries competitive moves must be constrained informally. However, a maverick firm seeking a competitive advantage can displace the otherwise disciplined market. When a rival acts in a way that elicits a counter-response by other firms, rivalry intensifies.
The intensity of rivalry commonly is referred to as being cutthroat, intense, moderate, or weak, based on the firms' aggressiveness in attempting to gain an advantage. In pursuing an advantage over its rivals, a firm can choose from several competitive moves: Changing prices - raising or lowering prices to gain a temporary advantage.
Improving product differentiation - improving features, implementing innovations in the manufacturing process and in the product itself. Creatively using channels of distribution - using vertical integration or using a distribution channel that is novel to the industry. For example, with high-end jewelry stores reluctant to carry its watches, Timex moved into drugstores and other non-traditional outlets and cornered the low to mid-price watch market.
Exploiting relationships with suppliers - for example, from the 's to the 's Sears, Roebuck and Co. Sears set high quality standards and required suppliers to meet its demands for product specifications and price.
The intensity of rivalry is influenced by the following industry characteristics: A larger number of firms increases rivalry because more firms must compete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.A Strategic Analysis A case study of how Kodak is guilty on four counts of serious corporate failure his study undertakes an analysis of five fundamental dichotomies.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. Gain free stock research access to stock picks, stock . Companies that don't keep up with market-changing innovations, like Kodak, run the risk of going bankrupt.
We take a look at some big name examples. Comprehensive Strategic Plan for Eastman Kodak | Eastman Kodak Products External analysis of Eastman Kodak Introduction Kodak is the market leader in providing photographic products and services to consumers and commercial customers around the globe for memories.
5. Negotiate a contract. Once the vendor and its package selected, then the company can move to the contract negotiation, in which the company can specify the price of the software and the type of the support to be provided by the vendor.
May 30, · So you have a digital strategy. Kodak did too, and that didn't prevent the Rochester film giant from disappearing. There are lessons to be learned by looking more closely to the story.