In 2003, Kodak organized its business into four segments: 1) Photography, 2) Health Imaging, 3) Commercial Imaging, and 4) All other (Profile 1). The photography industry was best categorized as being in the ˘mature stage÷ of the business lifecycle, prior to the advent of digital technologies.
Digital technologies have revolutionized both photography and the global photographic industry. Once a mature company in a mature industry; Kodak is experiencing sales across all of the above four business segments, due to innovations wrought by digital and other technologies. As defined in chapter two of Introduction to Strategic Management, ˘Indeed, innovation is frequently the major factor in industry evolution and causes the movement through the industry life cycle÷ (58). Because of the innovation of digital technologies, Kodak and other companies in the photography industry now resemble a growth industry more than one that has matured.
Forces that determine industry competition often include both opportunities and threats. With respect to Eastman Kodak, the following opportunities and threats provide the company with target areas for strategy to gain competitive advantage:
Fully invest in digital products Vulnerable to new competitors
Continue new product launches Questionable risk management
Acquisitions in focus areas Photographic film decline
The Kodak corporate strategy revolves around its creation o