new innovations in electronic equipment

 

 

 

Kodak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Porters five forces analysis

Threat of new entrants

Eastman Kodak Company went bankrupt since it failed to integrate itself with the latest technologies and further new innovations in electronic equipment brought more entrants into the market. New companies came up with new ways of doing things, and further, they put pressure on Kodak’s operations by either offering products at lower prices or offering new value propositions.

Bargaining power of suppliers

In the electronic equipment industry, companies buy their goods or resources from numerous suppliers. While suppliers are in a dominant position, they can pose a challenge to the profitability of Eastman Kodak. In the consumer goods sector, suppliers use their negotiation power to get higher prices from companies for their resources. While suppliers have higher bargaining power, it decreases the overall profitability of the company(“Case 10 Eastman Kodak’s Quest for a Digital Future”, 2022).

Rivalry among existing competitors

Eastman Kodak operates in a very competitive market. The electronic equipment industry is full of players that offer unique products at lower prices. It is very evident that if rivalry among existing players in an industry is high, then it will lead to lower product prices and losses. The long-term profitability of an organisation takes a hit since organisations fail to survive with losses for the long term.

 

Threats of substitution

It is very evident that in the electronic equipment industry, when a new product is introduced to meet similar customer demands in different ways, it will have an impact on the profitability of other market players. Services like Google Drive and Dropbox have substituted storage devices. The threat of a substitute product or service increases since a new brand or product is specifically different from an existing player’s value proposition(“Case 10 Eastman Kodak’s Quest for a Digital Future”, 2022).

Bargaining power of buyers

Buyers’ demands and bargaining power are always expressed in a way that they are kept in a demanding lot. Customers always wish to buy the best quality products available on the market at lower prices. It impacts and puts pressure on the long-term profitability of Eastman Kodak. If Eastman Kodak has a smaller and more powerful customer base, it will result in the customer’s having more bargaining power and, at the same time, the customer’s capacity to ask for increased discounts and offers will increase.

Direct Competition

Canon, Nikon, Fujifilm, and Sony have always posed a significant challenge to Eastman Kodak in order to remain competitive. Canon and Fujifilm are always known for their features in cameras, while Sony and Nikon offer cameras at budget prices. Eastman Kodak failed to survive in the market since other camera manufacturers adopted the latest technology to offer new products at affordable prices, while Kodak just focused on increasing sales figures.

 

Indirect Competition

It wouldn’t be wrong if we list smartphone manufacturers as indirect competitors of Eastman Kodak since continuous development and innovation in smartphones impacted the market for digital cameras. It wasn’t Eastman Kodak that went bankrupt or failed to understand the market. Eastman Kodak failed to adopt new technology and offer their products in a competitive market due to which many local players ate up the business of Eastman Kodak.

References

Case 10 Eastman Kodak’s Quest for a Digital Future. O’Reilly Online Learning. (2022). Retrieved 19 May 2022, from https://learning.oreilly.com/library/view/contemporary-strategy-analysis/9781119495727/cs10.xhtml#head-2-1.