Essay About Low-Cost And Razor-Blade Business Model

Kodak Case Analysis
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Backg
Overview
starts
premise
Kodak
synonymous
photography
century
industry
stalwart
course
first
century
United
States.
Being
technologically
advanced
company
placed
customer
needs
first,
backed
strong
emphasis
advertising,
low-cost
production
continuous
innovation,
Kodak
decimated
competition
during
imaging
revolution
early
1900s.
Investing
heavily
early-on in
research,
company
introduces
superior
color
technology
1960s
after
decades
research.
corporation’s
competition
blindsided
advent
Kodak’s
consistently
reproducible
product
offerings
scrambled
launch
products
could
compete
market.
prescience
Kodak’s
bolstered
company
monopolize
imaging
industry,
unchallenged.
forwarding
1980s,
Kodak
faced
changing
landscape
within
imaging
industry.
clearly
illustrates
culture
company
plays
crucial
either
continued
dominance
pitiful
downfall.
course
years,
company
transformed
consumer-focused,
technologically
advanced
enterprise
solely
cares
about
bottom
line.
Despite
spending
billions
research,
Kodak
ignores
competitors’
advancements,
internal
technological
innovations,
especially
analyses
declining
sales
reducing
market
shares.
company
continues
to revel
glory
steeped
razor-blade
business
model
refuses
acknowledge
“missing
boat”.
discusses
Kodak’s
attempt
navigate
choppy
waters
changing
landscape
struggles
identity
crisis,
efforts
maintain
position
pioneer
within
increasingly
competitive
industry.
1. Evaluate
Kodak’s
strategy
traditional
photography.
company
successful
throughout
history
industry?
● George
Eastman
developed
patented
plates
photographic
plates,
which
superior
convenient
traditional,
cumbersome
plate
technology.
Eastman
eventually developed
transparent
significant
advancement
glass
plate
photography.
● Despite
early
challenges,
Kodak
earliest
imaging
companies
whose
innovations
cemented
position
pioneer
photography
became
household
name.
company
pride
quality
products
strived
maintain
competitive
through
extensive
advertising,
marketing
strategies,
low-cost
production
consumer
centric
products.
● Being
early
player
game,
Kodak
leveraged
brand
presence
forged
strong
relationships
retailers
capture
large
markets.
bolstered
company’s
position
market
since
customers
preferred
familiar
Kodak
product
competitors
advanced
offerings.
addition
that,
their
photo-finishing
process
became
industry
standard
developed
easily
replicated
photo
shops,
crucial
process
competitors
struggled
– making
their
technologies
efficient
consistent.
Kodak
prominence
competition
continued
speed
market,
customer
loyalty
technological
advancements
squash
emerging
players
within
industry.
● The
company
remained
innovative
first
decades
existence,
spending
millions
continuing
research,
pioneering
color
films
launching
home-movie
cameras
1930s.
Kodak
ability
foresee
future
imaging
1920s
invested
early
researching
color
technologies.
company
decimated
competition
during
color
substantially
billion
revenue
monopolized
camera
market
United
States.
● Kodak’s
biggest
success
market
dominance
early
years
could
be attributed
their
“razor-blade”
business
model
– where
camera
equipment
intentionally
designed
minimalistic
priced,
revenue
generated
films.
company
followed
Eastman’s
philosophy
production
cost,
rarely
experimented
technologies
could
bottom
line.
company
capitalized