Market Analysis for Digital Photography Industry
Eastman Kodak Company: Funtime Film Case Study, BEP 430 Marketing 20030059
Dong ock Kim1, 20030071 Min geuk Kim2, 20040054 Keehyung Kim3, 20040535
Yohan Jo4, 20076006 Huang Qiuling5, 20076035 Dorjsuren Bayarmaa6 Marketing
Team A1 2 3 4 5 6
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected] Professor: Wonjoon
Kim Date submitted: April 10, 2007 TO: George Fisher, chief executive officer,
Eastman Kodak Company FROM: Dong ock Kim, Min geuk Kim, Keehyung Kim,
Yohan Jo, Huang Qiuling, Dorjsuren Bayarmaa RE: Eastman Kodak Company:
Funtime Film DATE: April 10, 2007 First of all, we ve analyzed about Kodak s
circumstances and problems.... Show more content on Helpwriting.net ...
The implementation of this strategy is so simple. If consumers purchase over 25
rolls of film at once, Kodak give them a coupon that they can print 5 rolls of film
for free at the next time visit. At least 13% of each household can print 5 rolls of
film for free, so Kodak should bear the expenses. It means that Kodak s variable
cost increases and net profit decreases. In the short run Kodak ma y lose some
profit; however, in the long run, I m sure that it could reinforce the qua ntity of
consumers who want to purchase Kodak s products. In addition, only Kodak has
capabilities to do this strategy, because Kodak is exclusive company in film
market which has the highest profit (gross) margin. If this strategy makes a great
success, Kodak s competitors may reduce the price. They has lower profit margin
even now, so it means a shortcut to get bankrupt for them. You can find other real
cases using this strategy2. success of other classes. This effect is called Bowling
Alley Strategy because it looks like a bowling pin that is hit by the bowl at first. The
first pin makes other pins fall down. Moore, Geoffrey (1991), Crossing the Chasm,
Harpper Business. 2 л°•м І (2005), 도서무료배송을 н†µн• њ
мќён„°нЊЊнЃ¬мќ мќён„°л„· л Џ„서시장 м„мђм‚¬лЎЂ , л§€мјЂнЊ…
кіјн•™м —°кµ¬ м њ15м§‘ м њ2н ё, pp. 227 244. 5 Exhibit 1. SWOT analysis
Favorable Internal Strength High brand name value High market share High gross
margin Weakness High price