A New Strategy For Kodak Due Week 9 And Worth 300 Points Rev

A New Strategy For Kodakdue Week 9 And Worth 300 Pointsreview Case 28

A new strategy for Kodak due Week 9 and worth 300 points review Case 28 “The rise and fall of Eastman Kodak: Will it survive beyond 2012?” located in the textbook. Assume that you have been hired by Kodak as a business consultant to recommend a new corporate-level strategy for the company to improve declining sales, increase profitability, and expand the company to the Cloud service industry. Write a five to seven (5-7) page paper in which you: 1. Establish five (5) key objectives for Eastman Kodak that encompasses the operational, financial, human resource aspects of the business. Next, argue that each of the established objectives is essential to the success of the company within the Cloud service industry. 2. Analyze Kodak’s horizontal and vertical integration strategy and determine the corporate level strategy that is more appropriate for the company to establish a competitive advantage in the Cloud service industry. Provide a rationale for the determination. 3. Determine five (5) ways in which pursuing a multibusiness model based on diversification may increase profitability for the company. Provide at least two (2) examples of such use of a multibusiness model from industry to support the rationale. 4. Recommend one (1) implementation strategy for Eastman Kodak that considers organizational design, strategic control systems, structure, and the type of organizational culture fitting for the organization and its new industry. Justify the recommendation. 5. Speculate on the way in which both the corporate-level strategy and the implementation strategy you recommended in Question 2 and Question 4 would support ethical business behaviors. Analyze the significant manner in which ethics, corporate social responsibility, and environmental sustainability impact the implementation of the strategies that you have recommended. 6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and similar type Websites do not qualify as academic resources.

Paper For Above instruction

Introduction

Eastman Kodak, once an iconic leader in the photography industry, faced a dramatic decline as digital technology rendered traditional film obsolete. To ensure its survival beyond 2012, Kodak needs a comprehensive strategy focusing on operational excellence, financial stability, human capital development, and technological innovation, especially into the Cloud service industry. This paper proposes a set of strategic objectives, analyzes Kodak's current integration strategies, explores diversification through a multibusiness model, recommends an implementation framework, and discusses the ethical implications of the proposed strategies.

Key Objectives for Kodak

1. Financial Stability and Growth: Achieve sustainable revenue streams by diversifying income sources, including expanding into cloud services, and optimizing cost management to improve profitability.

2. Technological Innovation and Digital Transformation: Invest heavily in R&D to develop competitive cloud-based solutions and innovative digital imaging technologies, positioning Kodak as a leader in cloud storage and digital services.

3. Market Expansion and Customer Centricity: Broaden market reach to include small businesses and consumers seeking cloud storage options, emphasizing user-friendly interfaces and reliable service.

4. Operational Efficiency: Streamline processes through automation and digital workflows to reduce costs and improve service delivery, ensuring scalability in the cloud industry.

5. Human Resource Development: Cultivate a skilled workforce knowledgeable in cloud computing, cybersecurity, and digital marketing, supporting Kodak's transition into new industries.

Importance of Objectives for Success in the Cloud Industry

Achieving financial stability provides the necessary capital for innovation and expansion. Emphasizing innovation ensures Kodak remains competitive. Customer-centric strategies will help acquire and retain clients in digital markets. Operational efficiency reduces costs and enhances service quality, while human resources are vital for adapting to technological changes. These objectives collectively establish a foundation for Kodak's successful entry into the cloud services sector.

Analysis of Kodak's Integration Strategies

Kodak’s historical approach involved vertical integration—controlling supply chain processes—mainly in film production. Recently, horizontal integration aimed at expanding product lines or market segments. However, with the shift to cloud services, a focus on strategic alliances or acquisitions (a form of concentric diversification) is more appropriate. Adopting a related diversification strategy enables Kodak to leverage its existing capabilities in imaging and digital technology while entering the cloud industry.

The corporate-level strategy best suited for Kodak is focus or related diversification. By integrating related businesses within digital imaging, printing, and cloud storage, Kodak can create synergies, leverage technological expertise, and avoid overextension typical of unrelated diversification. This strategy supports competitive advantage by enhancing resource sharing, branding, and customer trust.

Multibusiness Diversification for Profitability

Diversification allows Kodak to spread risk and tap into new revenue streams. Firstly, developing cloud services offers recurring revenue models. Secondly, expanding into digital printing and imaging solutions for industries complements core competencies. Thirdly, licensing Kodak’s technologies can generate royalties. Fourthly, establishing strategic partnerships fosters innovation. Fifthly, entering ancillary sectors such as cybersecurity services associated with cloud storage enhances overall profitability.

Industry Examples Supporting Diversification

Google’s diversification into cloud computing, hardware, and entertainment illustrates successful related diversification. Similarly, Amazon’s expansion from e-commerce into cloud services with AWS demonstrates the benefits of a multibusiness model.

Implementation Strategy and Organizational Considerations

A recommended implementation approach involves establishing a dedicated innovation and digital transformation unit within Kodak, structured with cross-functional teams emphasizing agility and collaboration. This unit would operate under a flexible, adaptive organizational culture promoting continuous learning and experimentation. Strategic control systems should include real-time dashboards and KPIs aligned with innovation milestones and customer experience metrics. The structure should be matrix-based to facilitate resource sharing across departments.

This approach fosters an innovative organization aligned with the fast-paced cloud industry, allowing rapid adaptation and continuous improvement while maintaining organizational coherence.

Ethical Business Behaviors and Sustainability

The success of Kodak’s strategic shift depends heavily on adhering to ethical standards. A focus on transparency in data handling and safeguarding customer privacy aligns with ethical business conduct and builds stakeholder trust. Corporate social responsibility initiatives, such as reducing energy consumption in data centers, contribute to environmental sustainability. Moreover, ethical practices in supply chain management and fair labor policies support a positive corporate image.

The strategies proposed must incorporate ethical considerations to ensure compliance with regulations, promote social good, and contribute to sustainability efforts, which can serve as brand differentiators.

Conclusion

Transforming Kodak into a competitive player in the cloud services industry requires clear objectives, strategic integration, diversification, and a culture of innovation supported by ethical practices. By focusing on related diversification, developing a flexible organizational structure, and embedding ethics and sustainability into its core strategy, Kodak can revitalize its brand, expand its business horizons, and sustain long-term profitability.

References

  • Barney, J. B. (2014). Fundamentals of Strategic Management. Pearson.
  • Grant, R. M. (2019). Contemporary Strategy Analysis. Wiley.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68(3), 79-91.
  • Wernerfelt, B. (1984). A Resource-Based View of the Firm. Strategic Management Journal, 5(2), 171-180.
  • Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). Competing Against Luck: The Story of Innovation and Customer Choice. Harper Business.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases. Cengage Learning.
  • Yoffie, D. B., & Kim, R. (2011). Apple Inc. in 2011. Harvard Business School Case 911-418.
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  • Elkington, J. (1999). Cannibals with Forks: The Past, Present, and Future of Sustainability and Corporate Social Responsibility. New Society Publishers.

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