8/8/2019 Final Kodak vs Fuji
1/30
Vs
8/8/2019 Final Kodak vs Fuji
2/30
Group MembersName Roll No.
Krunal K Punjani 86
Sagar Raskar 88
Sourav Roy 90
Sandeep Kumar 92
Vishal Shete 94
Avanti Shirsat 96
8/8/2019 Final Kodak vs Fuji
3/30
Overview of the case Kodak was established by George Eastman and
enjoyed monopoly in the US markets.
A household brand name synonymous for films.
Development of dry plate process and innovationcontinued with roll of film.
Kodak was ethnocentric in their orientation.
Distribution spread across other countries.
More than 1lac Employees
Increased competition from national and internationalcompetitors
8/8/2019 Final Kodak vs Fuji
4/30
Joint venture with Nagase & Co
Introduced 60,000 stores which helped to display their
products
Concept of Minilabs in 1980
Development of Panoramic disposable camera, which
was not present in Fujis product range
Heavily advertised in 1986 Leased blimp and wasplaced in front of Fuji headquarters in Tokyo
8/8/2019 Final Kodak vs Fuji
5/30
Major competitor FUJI A Japanese company whichentered US market in 1964.
Recognized as a company who was:-
Consumer oriented Manufactured Innovative products
Price conscious
Distribution to drugstores, supermarkets, discount chains
etc Provided compatibility to Kodak cameras and Kodak films
Imitative improvements
Sponsorship agreement to gain International Recognition
8/8/2019 Final Kodak vs Fuji
6/30
Strategy of producing locally in US and competing
globally.
Fuji had 4 distributors whereas Kodak had 1 in Japan.
Established 15 manufacturing plants outside Japan.
Leader in ONE time use cameras.
Offers and discounts to sell excess inventory.
Focused on Profit
8/8/2019 Final Kodak vs Fuji
7/30
Reasons : Kodak accused Fuji Unfair trade practice by Fuji
Distribution of any other brand not permitted
Japanese Government Backing Fuji
Bribing Retailers and wholesalers
Subsidizing sales in US and Europe
8/8/2019 Final Kodak vs Fuji
8/30
SLEPT Analysis
8/8/2019 Final Kodak vs Fuji
9/30
Political Environment
8/8/2019 Final Kodak vs Fuji
10/30
USA JAPAN
Two Party Parliamentary with Monarchy
Managerial
Capitalism
Democratic Capitalism
HOMEcountry political environment
USA encourage their organization s to establish activities abroad, especially in core-
competency fields.
Japan Electronics & auto companies.
Global Political environment
Both countries are members of members of various international organizations and
share a common view on various issues.
Hostcountry political environment
8/8/2019 Final Kodak vs Fuji
11/30
There are two major issues in the political environment of the United Statesthat directly
affect the market for image technology products of Kodaks business.
Patentinfringement
Privacy
Japan has traditional and unique business practices in many industries, which are criticized
as being restrictive of foreign investors entering the Japanese market, even though they
are not designed as an impediment to foreign investors.
Therefore, since the 1980s the Japanese government has committed itself to taking more
rigorous actions against practices violating the Antimonopoly Law and promoting greater
transparency and deregulation.
8/8/2019 Final Kodak vs Fuji
12/30
Economic environment(
U.S
.A)Home country economy:
MNCs ofU.S.A venture abroad. Liberal economic & trade policies.
Hostcountry economy:
Size of the market, GDP, industrialization, banking, PPP, Income levels,
Global-level economy:
NAFTA
8/8/2019 Final Kodak vs Fuji
13/30
Econom
icE
nvironmen
t
Kodaks products are used both as consumer and industrial goods, andthis distinction is important to keep in mind when looking that the impact of
various external factors on Kodaks sales.
The distinctions become most evident in a discussion ofinflation and interest
rates.
TheU.S.-Japan bilateral economic relationship--based on enormous flows of trade,investment, and finance--is strong, mature, and increasingly interdependent
8/8/2019 Final Kodak vs Fuji
14/30
Social & Cultural Environment
8/8/2019 Final Kodak vs Fuji
15/30
U.S. Japan
Company Team in Sport Family in Village
Business goal To Win To Survive
Employees Players in team Children in Family
Human Relation Functional Emotional
Competition Cut throat cooperative
Work motivation Individual
Income
Group Income
Promotion According To
Abilities
Length of Service
Pay Service & Result Award of patience and sacrifice
8/8/2019 Final Kodak vs Fuji
16/30
Technological Environment
U.S.A - Innovator
JAPAN- Innovator as well as imitator
The technological environment within which Kodak operates is subject to continuous
innovation at an increasing pace. Part of this increasing amount of technological
innovation has been fuelled by a desire for compatibility and do-it-all devices.
8/8/2019 Final Kodak vs Fuji
17/30
Legal EnvironmentJapan's judicial system, drawn from customary law, civil law, and Anglo-American common
law, consists of several levels of courts, with the Supreme Court as the final judicial
authority.
Japanese constitution includes a bill of rights similar to the U.S. Bill of Rights, and the
Supreme Court has the right of judicial review. Japanese courts do not use a jury system,
and there are no administrative courts or claims courts
Section 301 of the US trade act is a law that requires theUS trade representatives to
determine whether trade practices by a foreign country are unreasonable and discriminate
against exporters.
8/8/2019 Final Kodak vs Fuji
18/30
Porters Five Forces Model
8/8/2019 Final Kodak vs Fuji
19/30
PortersFive Forces
8/8/2019 Final Kodak vs Fuji
20/30
Founded in 1934 , Fuji photo Film, its headquarters in Japan.
Fuji was market leader in Japan, worlds second largest market
for photography products.
Entered in the US Market in 1964 as supplier of private label
film.
Focused on providing quality and innovative products to
customers.
About Fuji
8/8/2019 Final Kodak vs Fuji
21/30
Fuji Strategy Reactive Follower.
Compatibility with Kodak cameras & films.
Aggressive Marketing.
Distribution Strategy.
Innovative & Quality Product with Price lower than that
of Kodak.
8/8/2019 Final Kodak vs Fuji
22/30
Reasons for Success
Niche Marketing.
R & D
Cost Efficiency.
Response from Kodak.
Trends in US.
8/8/2019 Final Kodak vs Fuji
23/30
Kodaks Strategies in Japan
Strengthened control over distribution &
marketing efforts
Joint venture with Nagase
Strategic alliances with Bandai
Its came out with the concept of Minilabs Introduced Panoramic disposable camera
8/8/2019 Final Kodak vs Fuji
24/30
Single-use cameras called Falcon
Set up R & D centre
Brought Kusuda Business Machines which
marketing kodak micrograph & business
imaging systems
Advertise heavily in the media
Introduced waterproof disposable cameras
8/8/2019 Final Kodak vs Fuji
25/30
Reason For Poor Performance In Japan
Significant difference between the
distribution networks
Kodak had only one distributors Nagase
Poor marketing & bad management
Kodak never took the Japanese market
seriously
Lack of effort
8/8/2019 Final Kodak vs Fuji
26/30
Difference In Distribution In US manufacturers sold directly to retailers & photofinishers
In Japan distributors acted as intermediaries
Fuji had strong ties 4 main distributors Asanuma, Misuzu,Kashimura and Ohmiya
Whereas Kodak had only 1 distributor Nagase
Kodak claimed that the tie up of Fuji with major distributorsprevented other brands entry
8/8/2019 Final Kodak vs Fuji
27/30
Distribution Strategy
8/8/2019 Final Kodak vs Fuji
28/30
Fujifilm
Asanuma
Secondary Wholesalers
Tertiary
Wholesalers
Camera
Stores
Camera
Stores
Small
Retailers
Misuzu Kashimura
Large
Reatilers
Ohmiya
Large
Retailers
8/8/2019 Final Kodak vs Fuji
29/30
Fuji products were sold through 216000 retail outlets
15% of them gave 75% of the total sales.
Fuji owned a controlling interest in 3 of the 5 major
wholesalers
In response Kodak bought Ksuda Business Machines a
local distributor there
8/8/2019 Final Kodak vs Fuji
30/30
Thank You