Strategic analysis Kodak Essay Example | Topics and Well Written Essays - 2000 words

Strategic analysis Kodak - Essay Example Success in modern world requires constant innovation and change - things most of the organisation are not known very well. This environment changes so rapidly that even the best idea can fade fast. Perhaps this is the reason that environment is so important to an organisation. The external environment of Kodak is complex. As Kodak is focusing on imaging business, this market is the vital market for it. In digital age, more and more activities are related to digital means, same as more and more business are derived from digital technologies. Digital trend, indeed, represents a long-term threat to Kodak's core business - silver print. Although experts disagree over how long it will take for digital imaging to start shrinking the worldwide traditional imaging market, that day is surely coming. According to Lyra Research, a market research company in US, the worldwide film sales will grow only 1% annually through 2003 and slowly shrink after that, whilst digital imaging business will expand 20% annually in next five years (Kodak internal marketing article, 2001). One way to consider the competitive position of Kodak is by means of the Directional Policy Matrix (Thompdon, L. J. 1993: 470). ... a. Analysis of External Environment Success in modern world requires constant innovation and change - things most of the organisation are not known very well. This environment changes so rapidly that even the best idea can fade fast. Perhaps this is the reason that environment is so important to an organisation. Competitive Environment of Kodak The external environment of Kodak is complex. As Kodak is focusing on imaging business, this market is the vital market for it. In digital age, more and more activities are related to digital means, same as more and more business are derived from digital technologies. Digital trend, indeed, represents a long-term threat to Kodak's core business - silver print. Although experts disagree over how long it will take for digital imaging to start shrinking the worldwide traditional imaging market, that day is surely coming. According to Lyra Research, a market research company in US, the worldwide film sales will grow only 1% annually through 2003 and slowly shrink after that, whilst digital imaging business will expand 20% annually in next five years (Kodak internal marketing article, 2001). Introduction of Directional Policy Matrix One way to consider the competitive position of Kodak is by means of the Directional Policy Matrix (Thompdon, L. J. 1993: 470). This matrix is constructed above two axes: the Industry Attractiveness in horizontal axis and the organisation's competitive position in vertical axis. By evaluating relevant factors of these two dimensions we can place appropriate positions for discussed organisation. Traditional Imaging Digital Imaging Industry Attractiveness Market Growth Low High Supplier