Group XXX

1. BUSI 0000 Presentation Analysis of business strategies and recommendations for its success Group XXX

2. Outline A Strategic Inputs • History & Background • External Environment • Internal Organization B Formulation of Strategic Actions • Business & Corporate level Strategies • Acquisitions and Restructuring • International Strategy C Recommendations • Take Advantage of Its Strengths • Follow the Industry Trend • Learn from Its Past Failure

3. History and Background • Established in 1888 by George Eastman in Rochester, New York • Invented world’s first simple film camera, first digital camera • (Kodak picture)

4. History and Background • Field for voluntary petitions for Chapter 11 in 2012 • Just emerged from bankruptcy, and relisted on NYSE November 2013 onwards • Exited consumer business and focus on business and commercial printing

5. General Environment • Technological • Fast changes in technology

6. External Environment: Past Threat of New EntrantsLow to moderate Bargaining Power of SuppliersLow Competitive RivalryLow Bargaining Power of BuyersLow Threat of SubstitutesLow

7. External Environment: Past • Rivalry among competing firms • Low • Only few major players in the market • Threat of substitutes • Low • At that time there were few alternatives to the film camera • Threat of new entrants • Low to moderate • High entry barriers due to high R&D costs

8. External Environment: Past • Bargaining power of suppliers • Low • Kodak was vertically integrated, supplied its own materials in many areas • Bargaining power of buyers • Low • Few alternatives to the film camera so the buyers did not have much say  Film business was appealing

9. External Environment: Past Threat of New EntrantsLow Bargaining Power of SuppliersHigh Competitive RivalryModerate to high Bargaining Power of BuyersHigh Threat of SubstitutesHigh

10. External Environment: Present • Rivalry among competing firms • Moderate to high • Many players in the industry • Threat of substitutes • High • Switching costs are relatively low • Threat of new entrants • Low • Low entry barriers

11. External Environment: Present • Bargaining power of suppliers • High • Many other companies as alternatives • Bargaining power of buyers • High • Many other companies as alternatives  Commercial printing business is a tough business to be in

12. External Environment • Competitoranalysis Past Present Film Manufacturers • Commercial Printing Companies • RR Donnelley & Quad/Graphics Inc. occupy the greatest market share • Fuji Xerox and Canon, HP • Japanese company • Manufactured film (high market commonality) • Entered the U.S. in 1980s with lower price • Others: AGFA, Konica

13. Internal Organization • Main reason for the past failure • Complacency culture led the failure to recognize the transition to digital age • Current - Strong R&D and exclusive patents

14. Outline A Strategic Inputs • History & Background • External Environment • Internal Organization B Formulation of Strategic Actions • Business & Corporate level Strategies • Acquisitions and Restructuring • International Strategy C Recommendations • Take Advantage of Its Strengths • Follow the Industry Trend • Learn from Its Past Failure

15. Business Level Strategy Beginning Introducing digital cameras • Current business in commercial printing industry • Integrated Cost-leadership with differentiation Broad differentiation Focused differentiation strategy

16. Corporate Level Strategy Past Present Related Diversification • Dominant Business Diversification • Over-diversified • Moved from B2C to B2B • Linkage was been weakened, not muck value and competency was shared • Linkage still needs to be strengthened (?????)

17. Active Acquisitions 2000-2002 lumisys, Inc., a leading provider of desktop computed radiography systems and x-ray film digitizers. Bell & Howell Company's imaging businessesOfoto,Inc., a leading online photography service Encad, focused exclusively on the wide-format inkjet printing industry 2003 Kodak made several acquisitions including- PracticeWorks, Inc., a provider of dental practice management software;- 20% of lucky Film Co., ltd., the largest maker of photo film headquartered in China;- laser-Pacific Media Corporation, a provider of post-production services for filmmakers;- Algotec Systems ltd., developer of picture archiving and communications systems; - Applied Science Fiction's Digital PIC rapid film processing technology. 2004 -Bought remaining shares of Chinon Industries, a digital camera manufacturer- Acquired The imaging sensor business of National Semiconductor, and formed an alliance with IBM to manufacture CMOS image sensors. 2005 - OREX Computed Radiography ltd., a leading provider of compact computed radiography systems that digitally acquire x-ray images.- Former joint venture Kodak Polychrome Graphics -a leading supplier of products and services to the graphic communications market;- Creo Inc.- a premier supplier of prepress and workflow systems used by commercial2005 printers around the world. 2009 The document scanner division of BÖWE BELL + HOWELL, a leading supplier of document scanners to value-added resellers, system integrators and end users 2011 The relief plates business of Tokyo Ohka Kogyo Co., ltd., helping expand capabilities for flexographic/packaging markets.

18. Acquisitions Assessment Digital Printing Companies Healthcare Imaging Companies • Consumer Photography Companies • Success • Failure • More Details

19. Restructuring Downsizing Downscoping Short-term • Monetize some non-strategic properties • Reduce operation costs • Emphasize more on strategic controls over the digital printing businesses Long-term • leads Kodak to suffer from high risks • a loss of human capital

20. International Strategy International Corporate Level Strategy • Global • Standardized products offered International Business Level Strategy • Same as home market

21. Outline A Strategic Inputs • History & Background • External Environment • Internal Organization B Formulation of Strategic Actions • Business & Corporate level Strategies • Acquisitions and Restructuring • International Strategy C Recommendations • Take Advantage of Its Strengths • Follow the Industry Trend • Learn from Its Past Failure

22. 1) Take advantage of its strength • Emphasize its history and root in the US • One of its main competitor Fuji Xerox has its focus in • Emphasis on printing on foil, plastic, glass, and metal • Pitch in the court to keep the business • Concentrate on niche market • Printing on glass has become a big trend in Japan and Europe; trend is moving towards North America • Sophisticated technology

23. Recommendation 01. Take advantage of strengths • Emphasize its history and root in the United States • Fuji Xerox, one of its competitors is focused in the Asia Pacific region. Kodak can gain geographical advantage by focusing on North America market. • Maintain remaining patents • Kodak has recently sold more than 1,000 patents to Apple and Google to save itself from bankruptcy. The remaining patents have potential for Kodak to gain competitive advantage • Emphasis on printing on foil, plastic, glass and metal • It has been noted by its pitch in the court for exiting bankruptcy that Kodak holds competitive advantage in printing on special materials. • In addition, there is an increase interest in glass printing – market available

24. 2) Follow the industry trend • Provide a platform for B2B file sharing • Allowing business clients to store their graphics and freely transfer without security issues • Kodak can make use of its patent for managing assets and metadata as well as displaying image on the screen • Increase demand in cloud file sharing • Be aware of the 3D printing trend • 3D printer patents will expire in 2014 • Not necessarily have to join the industry but should prepare to adapt to the change if the change in trend is detected

25. 2) Follow the industry trend • Opportunities from SMEs • Big corporations’ situation Market Share • Already have suppliers • High switching cost • Not much differentiation

26. 2) Follow the industry trend • Opportunities from SMEs Emerging Markets Emerging SMEs • SMEs’ choices • Demand for new suppliers Not familiar with the market Kodak is a big name to them

27. 2) Follow the industry trend • Opportunities from SMEs Emerging Markets Emerging SMEs • SMEs’ choices • Demand for new suppliers Not familiar with the market Kodak is a big name to them

28. 2) Follow the industry trend • Opportunities from SMEs Emerging Markets Emerging SMEs • SMEs’ choices • Demand for new suppliers Not familiar with the market Kodak is a big name to them

29. 2) Follow the industry trend • Opportunities from SMEs Emerging Markets Emerging SMEs Great Opportunity for Kodak • SMEs’ choices • Demand for new suppliers Not familiar with the market Kodak is a big name to them

30. 3) Learn from its past mistakes • Do not overdiversify • Unrelated diversification into healthcare and biotechnology • Diversifies its risk, but also increases the range of competition

31. Conclusion • Take advantage of its strengths • Follow industry trends • Learn from its past mistakes  Kodak could shine again

32. Q & A