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Essay / Research Paper Abstract
This 7 page paper looks at the problem faced by Kodak as a result of changing technology and the increased popularity of digital cameras. The paper answers two questions; “What lies behind the market’s dismal assessment of Kodak’s near and medium term performance?” and “are Kodak shares under-priced, and thus an exceptional buy as leading raiders assert? Or, are raiders simply positioning themselves to exploit the inevitable break up of the company?”. The bibliography cites 4 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEkodak2.rtf
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Unformatted sample text from the term paper:
photographic paper and film. Kodak was the dominant market leader with highly differentiated products, in terms of quality reputation and range. They had a well known brand name with high
recognition levels and many associated positive qualities, as well as other brand names wanting to be associated with the company or those that used its products. The entire operation was
based on these core products with many related diversifications/. The problem that Kodak has faced has been the changes in technology and the way in which many of the customers
were moving to new products. Photographic film, as a core product, is becoming less and less vital to the industry as digital cameras have been developed. It is simply not
needed. The need for photographic paper has changed, which it is still needed to print the photographs, the type of paper and the way it is used has changed.
In looking at how a company competes theoretically we can start to appreciate the difficulties that the shifts in the macro technological environment has impacted negatively on the company.
Michael Porter has argued that in the long term, to be successful, any company will need a competitive advantage. Porter defined two types of
competitive advantage. These are cost advantage and differentiation. These are two different ways a competitor may get the edge on its rivals. To compete in the long term Porter has
argued that there should be a source of competitive advantage, and that no competitive advantage was ever one which would be unassailable by others, but some may be harder to
imitate. Therefore more than a single advantage would be advisable, and was the need to watch the market to maintain advantages. The development
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