Influencing Organizational Strategy 17 Influencing Organizational Strategy

Running head: Influencing Organizational Strategy
INFLUENCING ORGANIZATIONAL STRATEGY
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Influencing Organizational Strategy 2
INTRODUCTION
Disruptive changes remain one of the most challenging aspects of business, especially
digital technologies. Changes within the digital technologies have been driving many companies
to the edge leaving many performing dismally. The digital industry is a competitive market with
many businesses having their share and this requires a response to digital revolution. Failure to
respond to changes has made many companies make huge losses leading to the collapse of the
business. Moreover, the company experiencing disruptive changes without faster response
performs poorly in terms of financial. Disruptive change especially in innovation results in
change in market or value chain aspects that need faster re-strategizing to prevent negative
implication of these changes within the business profit. Eastman Kodak is an example of a
company that has experience disruptive changes leading failed strategy. Kodak had remains
focusing on print imaging and consumer market despite changes in the value chain leading to a
massive loss. The following paper analyses the case of Eastman Kodak citing some important
aspects that business can learn.
1. What was Kodak’s digital imaging strategy during 1992-2012?
Kodak came up with digital imaging strategy that helps in driving the company’s growth
within the period of 1992-2012. The company had digital imaging strategy that was embedded
with four core aspects mainly emphasis on print imaging, harvesting traditional photography,
external sourcing, and managing the transition. These four major aspects were the key themes
that assist the company to manage its transition from traditional imaging to digital imaging
platform.
Emphasis on print imaging

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The digital imaging strategy that the company uses is the focus on printed imaging
strategy that believed in the inability to eliminate print imaging. The company invested heavily
on the printed imaging strategy that ensures that the business develops its consumer and
commercial aspect. Within the strategy, the company invested in various techniques that will
ensure the company dominates the market.
Firstly, the company invested in the purchasing of printers to increase photographic
business. The strategy was focusing on printers and developing and improving the available
inkjet printers to increase the printing know-how in the industry. The Kodak increases its
investment in inkjet technologies that make the company better print image technologies.
Focusing on printing business during the period made the company to realize growth within the
printing business though with limited profitability (McAlone 2015).
Secondly, the company also invested in the digital imaging initiatives with a focus on
building Kodak presence within the inkjet technologies market. The company heavily invested in
building the digital image presence and position within the market. In addition, the company also
aimed to increase its market share for inkjet within the digital imaging industry. Despite the
effort to increase the market share, the company struggles to achieve 6% market share as
compared to other companies such as Hewlett-Packard that has more than 60% market share
within the digital imaging and printing market (Glowik & Bruhs 2014).
External outsourcing
The company had another aspect of its digital imaging strategy that mainly focuses on
acquiring other businesses within the photography market. External sourcing is an area of focus
is the acquisition of other companies that majorly provided the film industry (Masaaki & Swan
2007). The company through its digital image initiative aimed to acquire other companies within

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the market to increase its share. Failure to perform within the market ensures that the company
reduces its involvement within the photographic market as it continues to make loss leading to
total withdrawal. This made the company to cut jobs within the company and it also reduces the
film products (Baaken & Teczke 2014).
Harvesting from traditional photography
Kodak increases its investment within the traditional photography portfolio to ensure that
harvesting from the business. The company had indicated that despite the transition to digital
business the company will remain and increase its dominance within the traditional photography
market. The company also acquire other companies within the photography market to ensure its
increase its film investment and this reduces its chance of other business (Sandström 2010).
Managing transition
The Kodak forms a key pillar of its digital market strategy that would help in managing
the transition into digital imaging innovation. The company, therefore, devised the approaches
that can be used to manage the transition. The market approaches to transition include the
consumer-oriented market, professional and commercial market. With these approaches, only the
consumer market was already in operation leading to a concentration on a single part of the value
chain. This aspect of the strategy focuses on simplicity and quality market approach to ensure
the company remains within the market leadership (Numssen 2012).
2. Why did the strategy fail?
The Kodak had a vision of becoming a market leader within the digital image and
photography industry. The approach of the company or its strategy failed to materialize
especially due to much financial poor performance that was realized by the company CEO Perez.

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There are different reasons for the failure of the strategy that was used by the company to realize
its vision within the photography market.
Firstly, poor choice of the market is one reason that leads to the company realizing that it
had failed in its strategy. The company had heavily invested in the consumer market that forms
the core focus and the traditional market for the company. The financial result of the market
performance was dismal as compared to other areas that the company had also invested over the
years. In addition, the case presented indicates that high competition within the consumer market
was intense making the company has the low financial capability to perform. In addition, the
consumer market which had comprised of majorly printing was misconceived leading to poor
financial performance (Weeks 2015).
Secondly, the company had focused on the wrong part of the value chain within the
photography industry marking the whole company to show dismal financial progress over the
years. The company had focused on a single area of the value chain and this was the consumer
market. This made the company invest heavily within this area leaving other areas that had little
competition. Furthermore, overemphasis of the company on the consumer market mad the
company to reduce its ability to control the financial investment that results in growth and
performance over time. The miss-focus of the company on the consumer market, as opposed to
many other areas such as sensor and displays, made the company to channel all the scarce
resources to this market leading to failed strategy (Lucas 2012).
Failure to recognize the digital threat as early as possible is another reason for the failed
strategy by Kodak. It important to understand, that the digital market is a highly competitive
market that has attracted a variety of companies. There were many different companies that pose
threat to the Kodak and the entire digital market that were not identified and dealt with on time.

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In addition, the company did not understand the various threats that exist in terms of the
substitutes to its products making the overall competition intense. This made the company to
register low performance disputes its leading within the digital image market at the time. This
implies that the company succumbs to the threat that was within the market leading to low
performance as compared to its other competitors such as Fujifilm. The company did not
understand its weaknesses and market force and some of these are presented in SWOT Analysis
and STEEPLE analysis below (Briones 2012).
Elements
Strength
1. Renown brand
The company has a renown brand that is capable of performing highly within the
market
2. Broad product
The company has increase its product portfolios to increase its coverage within the
digital market
3. Social responsibility
The company has strong corporate responsibility that allow the company to operate
within many different markets
Weaknesses
1. Weaker online retail platform
The company has developed a weaker online retail platform that mainly consists of the
company website with some modules to help in online shop.
2. Lack of focus
The company lack focus on specific technology aspect that affects its ease of