The internal analysis of Kodak based on the case study is carried out in this paper under three categories of analysis provided below.
Core Competencies
The company is focused on photography products that are evaluated to be not valuable, rare, costly to imitate, and could be easily substituted by new and better technologies and products. The company lacked Based on this assessment, it could be drawn that the company does not have core competencies that makes its easier for other companies to challenge the company’s business and position in the market. The company’s competitors are able to capture Kodak’s market share by implementing effective and efficient strategies. Even in the digital imaging market, Kodak failed to take the leading role to introduce the technology that permitted other companies to take a dominating position.
SWOT
Strengths
The company has years of experience and knowledge of the photography products and market that suggest strong competitive capabilities.
The company has strong brand equity and name.
The company’s ability to design and develop marketable digital cameras.
It has a strong management team.
Weaknesses
The company makes decisions to invest in business strategies that proved ineffective.
It has incurred billions of dollars in losses and failed to maintain its market share.
The lack of understanding of target markets by the company results in losses.
Low EBITDA affects its ability to invest in new technologies.
The company has limited its business strategy to digital imaging.
Opportunities
The market of digital imaging products is spreading globally and the demand for technologically advanced, convenient, and high-quality products is increasing.
There are possibilities of new strategic alliances with other companies.
There are opportunities to improve the functionality of imaging products and provide solutions at competitive prices.
Online photo creation, hosting, and sharing offer new opportunities.
Threats
Intense competition from the existing and possible new entrants.
The development of newer technologies and products and Silver-halide could become obsolete.
Highly capital intensive R&D.
High price sensitivity of products affect buying decisions.
Value Chain
The value chain of Kodak after digitalization can be illustrated in the following manner.
References
Gavetti, G., Henderson, R., & Giorgi, S. (2005). Kodak and the Digital Revolution (A). Boston: Harvard Business School.
