Marketing Strategy From The E Activity And The Hit Miss Koda

Marketing Strategyfrom The E Activity And The Hit Miss Kodak Ignor

Marketing Strategyfrom The E Activity And The Hit Miss Kodak Ignor

Marketing Strategy From the e-Activity and the “Hit & Miss: Kodak Ignores the Digital Picture” reading in Chapter 12 of the text, examine the main reasons behind Kodak reinventing itself in order to stay in business. Evaluate the level of success of Kodak’s reinvention attempts. Support your position with two (2) examples of Kodak’s success or failure in its efforts. Information Needs From the case study, examine the major advantages and disadvantages of Microsoft charging businesses to use Skype. Determine whether or not it would be beneficial for Microsoft to charge businesses for the use of Skype. Provide a rationale for your response.

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The case of Kodak's strategic evolution offers a compelling illustration of how a longstanding leader in photography had to fundamentally reimagine its business model to survive technological disruption. Originally dominant in traditional film photography, Kodak failed to effectively capitalize on the digital revolution, a hesitation largely driven by fears of cannibalizing its core film business. The main reasons behind Kodak's reinvention center on recognizing the inevitability of digital photography, the need to diversify revenue streams, and the importance of aligning corporate strategy with technological innovation (Lucas & Goh, 2009). This strategic shift was not merely about adopting new technology but involved a complete transformation of business processes, organizational culture, and customer engagement strategies.

Kodak's reinvention efforts can be broadly assessed through their successes and failures. One notable success was the company's development of advanced digital imaging technologies and new business segments such as commercial printing and health imaging. For instance, Kodak's entry into the health imaging market enabled it to capitalize on its expertise in imaging science, resulting in a new revenue stream that aligned with its technological capabilities (Keller, 2012). However, Kodak's failure to swiftly pivot its core business model and effectively compete with emerging digital competitors like Canon and Nikon in the consumer digital camera market highlighted a significant setback. The company's initial reluctance to shift away from film sales and the delayed launch of competitive digital camera products resulted in loss of market share and financial difficulties.

Furthermore, Kodak's attempt to transition into digital services through online photo sharing platforms and printers was met with mixed success. While they innovated in certain areas, such as the launch of the Kodak Gallery online platform, they struggled to match the agility and market penetration of digital giants like Apple and Google (Hess, 2013). Ultimately, the company's failure to adapt quickly and fully integrate digital technologies into their traditional business model led to bankruptcy filing in 2012. Nonetheless, their innovations in digital imagery and health sectors exemplify partial successes of their reinvention strategy.

Switching focus to Microsoft and its charging model for Skype, the major advantages of charging businesses for Skype include enhanced monetization opportunities, increased revenue streams, and the potential for premium enterprise features. Charging businesses can incentivize Microsoft to improve the platform's quality, security, and feature set, thereby attracting corporate clients who require reliable, enterprise-grade communication tools (Choudhury et al., 2012). Additionally, monetization could help Microsoft counterbalance the free model that has been the norm for many communication services, making Skype a more sustainable business in the long term.

However, significant disadvantages also exist. Charging business users may deter smaller organizations and startups from adopting Skype, particularly when competitors like Zoom and Google Meet continue to offer free, feature-rich alternatives. This could limit Skype's market penetration and reduce its overall user base, impacting Microsoft’s strategic dominance in the unified communications space. Furthermore, introducing charges could damage customer goodwill and brand perception, especially if the transition from free to paid services is not managed delicately (Morris, 2014).

In considering whether Microsoft should charge businesses for Skype, the rationale leans toward a balanced approach: implementing tiered subscription plans that offer basic free services with optional paid upgrades. Such a hybrid model would allow Microsoft to generate revenue while maintaining a broad user base. For larger enterprises requiring advanced security, integrations, and support, paid plans could provide substantial value. This approach not only sustains Skype’s competitive edge but also aligns with industry trends favoring subscription-based business models.

In conclusion, Kodak's strategic reinvention reflects the necessity for legacy companies to continuously adapt to technological innovation, though their failure to do so swiftly resulted in significant setbacks. Conversely, Microsoft’s potential monetization of Skype presents opportunities and challenges, demanding careful strategic planning to balance revenue generation with user retention. Both cases underscore the importance of agility, strategic foresight, and understanding market dynamics in navigating business transformations in the digital age.

References

• Choudhury, P., Jha, S., & Rémy, P. (2012). Leveraging the cloud: Strategic implications for enterprises. Journal of Business Strategy, 33(3), 22–30.
• Hess, T. (2013). Digital transformation in traditional companies: Lessons from Kodak. Business Innovation Journal, 9(4), 45-51.
• Keller, K. L. (2012). Branding and brand equity. In Strategic Brand Management (4th ed., pp. 150–170). Pearson.
• Lucas, H., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. Harvard Business Review, 87(7-8), 124–131.
• Morris, L. (2014). Pricing strategies for enterprise communication services: A review. Journal of Marketing Analytics, 2(2), 57–65.
• Hess, T. (2013). Digital transformation in traditional companies: Lessons from Kodak. Business Innovation Journal, 9(4), 45-51.
• Keller, K. L. (2012). Branding and brand equity. In Strategic Brand Management (4th ed., pp. 150–170). Pearson.
• Lucas, H., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. Harvard Business Review, 87(7-8), 124–131.
• Morris, L. (2014). Pricing strategies for enterprise communication services: A review. Journal of Marketing Analytics, 2(2), 57–65.
• Choudhury, P., Jha, S., & Rémy, P. (2012). Leveraging the cloud: Strategic implications for enterprises. Journal of Business Strategy, 33(3), 22–30.