RIVALRY OF KODAK & FUJI

Presented To :- Mrs. Shailja Manocha

Presented By :- Manoj KumarSayeed Awadesh

CONTENT

• Introduction• Fuji• Product Launched• Fuji as a threat• Strategies of Fuji• Strategies of Kodak• Reason of Rivalry• Target Audience• Conclusion

INTRODUCTION

• The Us-based Eastman Kodak company founded by George Eastman in Waterville, New York.

• Because the death of his father, he discontinued his education at the age of 13. Being interested in photography

• Eastman pioneered the development of dry plate process and filed his first patent in 1879 related to gadget that prepared dry gelatin plates

• By the end of 1882 the company had generated enough revenue to afford a new factory in Tennessee to produce a steady supply of materials for making films

• Before 1980s it enjoyed a monopoly status in the photographic film and paper industry in the US with more than 85% marketshare

Cont…• Started manufacturing cameras, and also expanded company operations overseas

setting up the Eastman Photographic materials company limited in London in 1889

• The Company settled on the name Eastman Kodak Company in 1892• Kodak entered the Japanese market in the 1900 & setup its first distribution outlet

in 1905

• Through this outlet, products manufactured in the US were distributed to Europe, the Far East, and Australia

• By 1960, Kodak had 100,000 employees on its roll and was generating sales of two billion

• Competitors were many national and international players such as Polaroid, Berkley Photo, 3M, Agfa, Canon, Nikon, Minolta and Fuji.

Fuji

• It founded in 1934, Fuji Photo had its headquarters in Tokyo, Japan

• The Company first entered the US market in 1964 as a supplier of label film and established its first subsidiary in 1965

• The Company spent 7% of its revenue on R&D annually

• By 1991 Fuji had established 15 manufacturing plants in 12 countries outside Japan

Product Launched

KODAK FUJI

• Kodak launched its Super 8 movie camera which has larger film format

• In 1983 Kodak launched similar film in 4 speed

• In 1980 Kodak introduced waterproof disposable cameras

• In 1994 Kodak came out with a new product, a single use camera, called Falcon.

• It launched “panoramic disposable camera”

• In 1967 Fuji planned to introduced the movie system

• In 1976 Fuji introduced the 400-speed color film

• In 1983 Fuji brought out a new high resolution film in two speed

• In 1986 it launched one- time -use cameras

Fuji as a Threat

• Fuji is the main competitor of Kodak .Over the years since its entry into the US market ,Fuji had been constantly gaining Kodak marketshare in the photographic film and paper market

• The growth rate of Kodak’s highly profitable photography business had slowed by 2%-4% per year

• In 1990s the marketshare of Fuji was just 10% but was increased faster during 1993-1997 when Fuji’s marketshare increased to 17% moreover

• Kodak’s revenue had come down from $ 15.97 billion in 1996 to $ 14.36 billion in 1997. The most worrying factor for the Kodak’s management was the more than 5% points decline in its US marketshare

Strategies of Fuji

• Fuji provided buyers of Japanese camera with free film rolls but Kodak didn’t

• In 1977 Fuji reduced the prices of its print paper. The price was lower than that of Kodak

• Fuji’s products were 100% compatible with Kodak cameras & Kodak film

• Fuji gained more form the price cuts in the US• Fuji adopted the strategy of producing locally and competing globally

• The Company encouraged its salesforce to spend more time with distributers thereby building good professional relationship with them

• In 1997 Fuji reduced prices by 50% on its multiple roll film packs in response to this move Kodak also slashed its prices

Strategies of Kodak

• In 1970 Kodak formed several joint venture, one of them was Kodak –Nagase after setting up a subsidiary Kodak increased its workforce to 4500 from a mere 12

• Kodak setup its own R&D center and opened a technical assistance center

• Kodak sold its new range of photographic film named fed Kodacolor at 38.3% less than the market piece of other available films

• In 1986 Kodak advertised heavily in the media to increase its popularity

• The Company constructed a huge yellow sign symbolizing Kodak’s name

Reason of Rivalry

• Fuji had 18.8% marketshare in the US whereas Kodak had a mere 7-9% marketshare in Japan

• Fuji had strong ties with four main distributors – Asanuma, Misuzu, Kashimura, and Ohmiya in the US on the other hand Kodak had only one distributer, Nagase in Japan

• Kodak claimed that Fuji sold its photographic paper in the US by charging as low as one-fourth of what it charged in Japan & Netherlands

• In 1995 the rivalry between Kodak and Fuji intensified when Kodak filed a petition under section 301

Target Audience

• Geography : Rural & semi urban area, urban• Demography: • Income: Low, Lower middle, Upper• Psychographic : All• Behavioral :• Occasion:Special• Benefits: Quality• User status: All• Usage rate: Medium• Attitude toward product: Enthusiastic, Positive

Conclusion• Reason for Kodak’s failure in Japan was due to the significant difference between

the distribution networks in Japanese and the US market

• Kodak should do first whatever Fuji do