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Eastman Kodak Company

Eastman Kodak Company


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Eastman Kodak Company, which is commonly known as Kodak, is a technological company that has its business practices revolving around services for businesses, photography and imaging solutions. Its headquarters is located in Rochester, New York, and it has been named after George Eastman who is the founder. The company’s services comprise of graphic communication, functional printing, entertainment and commercial films. Its main products are photographic film.

Five major key objectives

Eastman Kodak develops various key objectives that it deems appropriate for the attainment of a competitive edge within the industry. For instance, the company has focused on mass manufacture of products since its global customers do not face products deficit. The production aims at the sustenance of its target annual revenue within the cloud service industry. The company is also implementing a strategic objective of being dynamic by ensuring that it takes into consideration the changes in consumer preference and the dynamic consumer needs. The company has, for instance, has come up with a Kodak Theatre HD player that allows photo storage to be displayed on a high definition television. It also launched the production of digital cameras and high-speed inkjet presses; all products were introduced with the aim of keeping up with changing consumer preferences and the evolving technology.

Another objective that the company embraces is the monetization of the imaging patent portfolio by making licensing agreements. The outcome of the strategy was the generation of infringement settlements and an income of not less than 3 billion USD (Gavetti et al., 2004). Subsequently, the companys position has improved to incline its investment portfolio towards new markets and new technologies such as ink jet printing within the cloud computing industry. For the operational aspects of the business, Kodak has embarked on an objective of maximizing the value of shareholders through a corporate real estate strategy and business process improvements. As for the human resource aspect of the business, the company came up with an objective of employees diversification. The objective has been appropriate for fostering healthy business relationships and improving the quality of work put out by the employees (Hills et al., 2014). It also seeks to negate employee layoffs through the provision of employee perks such as extended health insurance coverage and job search assistance.

Horizontal and vertical integration strategy

The vertical integration strategy aims at increasing the operation of the company without necessarily having to place reliance on other firms or organization. The vertical integration strategy that Kodak has set in place is the operation on more than one level of the distribution channel. The company thus established Eastman Chemical, which was its subsidiary that was found by George Eastman. Eastman Chemical began to supply all the chemical demands of Kodak Company. However, the subsidiary immediately became a Fortune 500 company on its own.

The ulterior objective of a horizontal integration strategy is the amalgamation of business that has operations in the same industry or sector. The horizontal integration strategy of Kodak was aided by the acquisition of OREX computed radiography, which is a company that operates in Israel and specializes in the provision of compact radiography systems. Medical practitioners can thus acquire patient x-ray images in a digital manner. The horizontal integration of the company has been important in helping it attain the integration of other infrastructures and assets within the same production levels.

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A corporate level strategy of a company is a function of decisions that a company should venture in while selecting value creation of activities and deciding how to embrace or exit a business industry. The corporate level strategy that will be appropriate for Kodak to establish gaining a competitive advantage in the Cloud service industry is focusing on consumer and commercial digital printing. The company should also convert its intellectual property portfolio to financial assets to increase the returns on innovation.

The strategy will also increase its stock, and the company may become more profitable, thus attaining a competitive advantage within the cloud service industry. However, Kodak should also acknowledge that the dynamics of competition are subject to change more so in the digital world. The advent of digital printing may have a shelf life and may not flourish for long because an increasing number of consumers are printing at home.

Pursuing a multi-business model and increase in profitability

Pursuing a multi-business model based on diversification may increase profitability for the company because it creates a cost structure reduction platform through global expansion and market diversification. The acknowledgment of cost economies from a global perspective aids in the expansion of sales volume and saves costs through the economies of scale. Economies of scale through the pursuance of a multi-business model are attributable to full utilization of production facilities as well as spreading of fixed costs (Hills et al., 2014).

Pursuance of a multi-business model will also increase profitability through value creation. Value creation is delivered to the end users who will, thus become customers when the model is converted into customers. An increase in customers translates to an increment of profitability. The model can also increase the levels of profitability through concentrating on the informal and formal descriptions that depict the core aspects of a business and operational processes. The model can also be used as a mechanism for enacting business growth. In this respect, the multiple business models may be mutually reinforcing to an extent that they convert unprofitable possibilities to profitable opportunities. Multiple business models will also be of paramount importance in fostering greater employee flexibility through a performance-related pay structure and enhance broader organizational skills.

An example of an application of multiple business models in increasing profits within the industry is focusing on the customer attraction segment (West, 2000). Benefits offered to the customers should be unique in a manner that customers may not be in a position to copy. Another application example is building a more balanced business portfolio and business model innovation. The model will also increase profitability when it increases product differentiation through the increment of innovative products. Subsequently, the sales force of a company can then sell new products at premium and, thus increase profitability.

Implementation strategy

The recommendable implementation strategy for Eastman Kodak is through core competencies and improvement of the market share. Management should especially pay more attention towards its weaknesses and revise the planning strategies that ought to be implemented in the low profits markets such as Europe. The market share and core competencies of Kodak will revolve around a supply chain satisfaction and the convenience of its services provision. Satisfaction of the supply chain is vital in giving the company a superior edge (Hills et al., 2014).

Core competencies and market share improvement will enhance the strategic control system of Eastman Kodak through enabling the control of building up and recapturing on its international market share. The inherent additional advantage that Kodak has in the achievement of the implementation strategy is the fact that the company has been launching various diversification initiatives. The company has also been a leader in retrieval systems and image storage that should be used to its advantage. Form a more practical standpoint, the improvement of the market share will be more confined towards enticing and ensuring customer satisfaction. In this respect, some materials that the company uses in design processes ought to be more appealing to the eyes of the end consumers.

Moreover, significant financial resources should be diverted towards the research and development roles of a company in the quest of fostering market share and improvement of core competencies of the company. Moreover, the recommendable implementation strategy will aid in the development of organizational design and structure by acquiring a recognizable brand name, which is a competitive edge over its competitors. The essence of a competitive organization is branding, as it is a reflection of how the business shows commitment towards conforming to stakeholders expectations. Similarly, a company that has a well-organized structure, through improvement of its core competencies, has higher chances of being at the industrys forefront.

The recommendation will be more appropriate for Kodak because it is meeting its customers needs and focuses so much on the protection of its market share. In this respect, if the company fails to offer solutions to the predominant customer problems, then the competitors will take that advantage through the provision of those needs. The recommendation, therefore, is tenfold in regards to its affiliate achievements.

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Corporate level strategy, implementation strategy, and ethical business behaviours

The corporate level strategy of the company is focusing on consumer and commercial digital printing. The company should also convert its intellectual property portfolio to financial assets to increase the returns on innovation (West, 2000). The strategy supports ethical business behaviours by ensuring that the activities of the business focus on the acceptable business practices within the cloud computing industry. The implementation strategy for Kodak would promote a healthy and ethical business practice because the company would only deliver products that are beneficial to the consumers. The ethical aspect of the implementation strategy fosters what the market share feels is acceptable to the nature of their changing preferences and technological advancements.

Implementation strategy within ethical practice and environmental sustainability will also show the relationship that subsists between the strategic organization of a company and the corresponding business model. Similarly, an ethical business practice, environmental sustainability, and corporate social responsibility will impact or undermine the implementation of relevant strategies set in place by Kodak. The strategies in question include corporate level strategy and implementation strategy. The rationale of the impact is embedded in the fact that, even though, the company is looking forward to come up with new strategies, it should conform to the relevant ethical standards. Implementing a successful implementation and corporate level strategy has to be coupled with maintenance of business ethics, environmental sustainability and corporate social responsibility so as to be effective (Hills et al., 2014). Similarly, implementation strategy will achieve its desired outcome when it is coupled with the proponents of environmental sustainability, ethical business practices, and a corporate level strategy. It gives the consumer an impression that the strategies Kodak is establishing are all rounded and not merely profit-oriented.


For an organization to flourish in any industry or area of operation, it ought to adopt a change and implementation of new strategies. Kodak is not an exception. Moreover, in an industry that is becoming overtaken by events due to technology advancements and change in consumer preferences, consumer awareness is imperative. The consumer ought to be well acquainted with the importance of professional marketing so that the company does not lose its market share. Moreover, implementation of company strategies should encompass ethical business practice, corporate social responsibility, and environmental business sustainability. The rationale applies to implementation strategies and corporate level strategies as well.

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