Strategic Analysis of Canon and Kodak: A Business Strategy Report

This report provides a comprehensive analysis of the business strategies employed by Canon and Kodak. It begins with an introduction to business strategy and then delves into a comparative analysis of the two companies, examining their strategic leadership styles, with a focus on Canon's proactive approach and Kodak's more autocratic style. The report then proceeds to analyze both companies using Porter's Five Forces and PESTLE frameworks, evaluating their responses to market threats and opportunities. Further, it explores their value chain analyses, highlighting Canon's manufacturing focus and Kodak's strengths in camera and printing features. The report also discusses generic business-level strategies, emphasizing Canon's cost-saving technologies and Kodak's shortcomings in this area. Corporate-level strategies, restructuring efforts, and international entry modes are also evaluated. The report also touches upon attack and response drivers, and strategic alliances. The report concludes by highlighting the key factors contributing to Canon's success and Kodak's decline, offering insights into the importance of adaptability, innovation, and effective strategic management in the competitive business landscape.

Running head: BUSINESS STRATEGY
Business Strategy
Name of the student
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Table of Contents
Introduction................................................................................................................................2
Analysis of two organizations....................................................................................................2
Strategic Leadership...............................................................................................................2
Five Forces Analysis..............................................................................................................3
Value Chain Analysis.............................................................................................................3
Generic Business Level Strategy...........................................................................................4
Attack and response driver.....................................................................................................5
Corporate Level Strategy.......................................................................................................5
Restructuring..........................................................................................................................6
International entry mode........................................................................................................6
Strategic alliance....................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10

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Introduction
Business strategy refers to course of the action that helps entrepreneurs for achieving
the business objectives. It helps a company in attaining a competitive position within the
market that aids it in carrying out the operations. Business strategy helps in pleasing the
customers that helps a business in achieving the desired ends. Canon refers to Japanese multi-
national corporation that specializes in manufacturing of the optical products that includes the
cameras, photocopiers along with the computer printers (Canon.com.au 2019). Kodak is the
name of American technology company that is instrumental in producing the camera-related
products. The company provides the functional printing along with the professional services
that helps in catering to the interests of various business across the world (Teece and Linden
2017). The main aim of this report is to elaborate on the strategic leaders, Porters Five
Forces, value chain, generic business strategy, corporate level strategy, restricting and the
strategic alliances in relation to the two companies of Kodak and Canon. The report also
elaborates on the reason that has helped Canon in emerging as a successful company in the
market. The report also throws light on the business strategies of Kodak that has made the
company unsuccessful in the market.
Analysis of two organizations
Strategic Leadership
There are strategically focussed entrepreneurs in Canon that has helped the company
in execution of the practical strategy for the company. The strategic leaders in Canon are
driven by the desire of creation of clear brand identity that has helped in the expansion of the
company across the world. The strategic leaders of Canon helps in creating a balance in
between the strategic goals that helps in the maintenance of a flexible plan for the
organization (Soltanizadeh et al. 2016). The competitive landscape prevalent in Australia has
caused Canon to take recourse to the innovative strategies that has helped the company in
rising above the competitors. Canon has added the higher-end mirrorless product that has
helped in popularizing the company within the competitive environment of Australia (Kane et
al. 2015).
The kind of strategic leadership that is prevalent in Kodak is the autocratic style of the
leadership. The leaders in Kodak holds all the authority along with the responsibility. The
leaders in Kodak make all the vital decisions without making any kind of consultation with

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the subordinates. Kodak has to face a competitive landscape in Australia that reduces the
profit that is made by the company.
Solution for Kodak- The company can have product portfolio that is strong that can
helped in serving the various kinds of consumer segments. The product portfolio of the
company can be made diverse that includes the laser printers along with the digital
production printer.
Five Forces Analysis and PESTLE
Canon tackles threat of the new entrants by bringing about innovation of the products
along with the services. It has built the economies of the scale that has helped in lowering
fixed cost per unit. Canon has built the efficient supply chain that has helped it in dealing
with the bargaining power of suppliers (Kono 2016). The customers of Canon are provided
with the discounts that has helped it in dealing with that of the bargaining power of the
buyers. Canon tackles threat of the substitute products by acting in a service oriented manner.
Canon deals with the rivalry by the help of the building of the sustainable differentiation.
The political factors has an effect on the performance of Canon. The level of the
corruption has an influence on Canon. The education along with the skill level of workforce
of Australia is high that has an effect on Canon. The people in Australia possess the
entrepreneurial spirit that is the social factor impacting Canon. The technological
developments in Australia along with the attitude towards the climate change has an effect on
performance of Canon. The discrimination law in Australia has an effect on the performance
of Canon.
Photographic industry has to face the moderate threat from the new entrants.
Complexity pertaining to technology along with the high cost of the Research &
Development has hindered the companies from entering into the sector. Kodak does not have
to face significant threat from that of the new entrants that has helped it in functioning within
the market (Kavadias, Ladas and Loch 2016). There are a large number of suppliers in
relation to the digital imaging products along with the services that can be relied on by
Kodak. Introduction of the mobile phones with the digital cameras has an effect on the
performance of the Kodak company. Kodak has to face stiff competition from the other
companies like Nikon, Sony along with Canon. Kodak has to face increasing amount of
competition from the global along with the national markets that has made the company
unsuccessful in the prevailing market (Dobni, Klassen and Sands 2016).

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The laws related to protection of the intellectual property has an influence on the
performance of Kodak in Australia. Rate of the growth in relation to GDP affects the fortunes
of Kodak in Australia. Class distribution among population of Australia bears an influence on
the performance of Kodak company. The breakthroughs made in the area of technology in
Australia has great effect on Kodak. The changing weather conditions has an effect on the
ability of Kodak company. The implementation of the safety laws in Australia has influence
on performance of Kodak.
Solution- The company can focus on the arena of in-house manufacturing facility that
can help the company in serving the various kinds of markets across the globe. Kodak can
have strong R & D facilities that can help the company in developing the disruptive products
in the various segments along with the categories.
Value Chain Analysis
Canon places great amount of importance on the aspect of the manufacturing that has
helped in ensuring success for the company. The company has offices along with the
factories that are engaged in the aspect of the partnerships that has helped in the survival of
the company within the market. Canon has enhanced the co-operative relationship with the
suppliers that has helped in the development of the company. It has helped in building the
capabilities along with the competence of the company within the market. The procurement
activities of Canon gives due amount of consideration to the society that has greatly helped
the popular brand.
Kodak possess various kinds of resources that has helped in the functioning of the
company. The key strengths of the company lies in the fact that the company has superior
film camera, video camera along with the printing features that has helped the company in
earning benefits (Yuzawa 2018). The capabilities of the company exists on account of the
fact that the company has kiosks at the retailers that has helped the company in earning the
revenues.
Solution- The company can built co-operative relationship with that of the suppliers
that can help in developing the company (Bereznoi 2015). Procurement activities in relation
to Kodak can help in serving the cause of the society.
Generic Business Level Strategy
The business level strategy of the company has greatly helped the company in
surviving within the market. Canon has succeeded in achieving lowest cost production that

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has helped it in surviving within the digital camera market. Canon has made use of the
integrated value chain that has helped the company in reducing the cost in relation to all the
aspects of the value chain. The in-house production system of the company has the intelligent
robots along with the automated production system that has helped the company in making
profits in the market (Ritter and Lettl 2018). The generic business level strategies of the
company is in relation to the cost-saving technology that has helped in ensuring success for
company. Canon has succeeded in making an operating profit of 342,952 that brings out the
fact that the strategies of the company have been successful (See Appendix).
Kodak lacks in terms of the generic strategies that can help it in competing with the
competitors. The company does not have the clear strategies that can help it convincing the
stakeholders along with the investors.
Solution- The company has been instrumental in developing DSLR cameras that has
helped the company in the arena of market dominance. Restructuring carried out by Canon
has helped the company in creation of strong position within market (Agrawal, Schaefer and
Funke 2018). The company has integrated business process that is a major reason of success
of company.
Attack and response driver
The image quality of the cameras of Canon has helped the company in creating a
dominant position in the market. The company has laid emphasis on developing the DSLR
cameras that has helped the company in maintaining the aspect of the market dominance. The
product positioning of Canon has helped the company in surviving within the market.
Kodak has drivers that has helped in the expansion of the company. The company has
the wide product portfolio that covers both the digital products along with the online photo
galleries. The company has expertise in both the traditional along with the digital
photography that has facilitated growth of company. Kodak decided to compete in the
competitive market of the printers that is an important cause of the failure of the company
(Pisano 2015).
Solution- The company did not re-build that of the innovation portfolio that has been
a cause of the decline of the company.

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Corporate Level Strategy
The corporate level strategy of Canon pertains to the fact that it has laid emphasis on
the aspect of the long term growth. The company has entered into Phase V of that of
Excellent Global Corporation Plan on the basis of the industrial shifts that has taken place in
the recent years (Rawlins 2018). The company resolves the social issues that helps the
company in contributing for the conservation of global environment.
The corporate level strategy of Kodak can be said to be weak on account of the fact
that the company does not have strong strategic alliances along with the partnerships that can
ensure the success of the company. The failed alliances of the company has made the
company suffer loss of the reputation. The market share of the company has decreased in a
drastic manner owing to the factor of the industry rivalry. The company failed due to the fact
that it had to face cases in relation to the patents that was instrumental in hurting reputation of
brand.
Solution- The company should bring about innovation in relation to the products that
can help in increasing the reputation of the brand. This can help the company in rising above
the competition that can help the company in creating a unique position in market.
Restructuring
The restructuring of the company has helped the company in creating a strong
position in the market. The company has involved itself in integrating the various kinds of the
business process that has helped in the expansion of the company. The channel structure of
Canon comprises of regional resellers, corporate dealers, retailers, assemblers along with the
system integrators that has greatly helped the company in making profits within the
Australian market (Global.canon 2019).
The restructuring that took place at Kodak made the company devise the new business
strategies that has facilitated the expansion of digital segment of company. It has led to the
developing of the photo kiosks along with the mini photo labs that has ensured transfer of the
images from the digital cameras to the printers without making use of computer (Gassmann,
Frankenberger and Csik 2016). Kodak has made mistakes in relation to the innovation
strategy that has heavily cost the fortunes of the company.

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Solution- The company can tie value back to that of core brand that can help them in
targeting the market.
International entry mode
Canon has implemented foreign market entry modes that has greatly helped the
company in making the profits. The company adopts the franchising system that helps the
companies in entering into the foreign market. It has low level of the political risk that helps
the company in making the alliances in the foreign market.
The international entry mode of the company is exporting that has helped the firm in
marketing the products in the other countries. It helps the firm in avoiding the expense that
has helped the company in avoiding expense in relation to the establishment of operations in
the new country.
Solution- The products of the company can be re-positioned in the right manner that
can help Kodak in surviving within the competitive market.
Strategic alliance
The company has made strategic alliances with that of the remote camera platform of
the company Brizi that has helped in the expansion of company. The strategic alliance has
helped Brizi along with the Canon in immersing themselves in the new markets that has
helped the company in the area of innovation.
Kodak has formed the strategic alliance with Barco that has helped the company in
serving the market of the digital cameras. It has helped the company in bringing about
innovation pertaining to the field of the entertainment imaging.
Solution- The company can take recourse to point-of-purchase materials along with
the coupons that can provide the solution to the problems for Kodak.
Conclusion
Business strategy is indicative of course of action that has helped entrepreneurs in
achievement of business objectives. It can help company in the attainment of competitive
position in market which can help company in devising the operations. Canon has
entrepreneurs who are strategically focussed that has helped in devising practical strategies
for the company. Canon has strategic leaders who want to create brand identity that can help
in expanding company throughout the world. Image quality of camera of the Canon have
greatly helped the company in the creation of dominant position within market. Kodak does

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not have the generic strategies which can help the company in carrying out the competition
with the competitors. Kodak lacks in relation to the clear strategies that can help the company
in convincing stakeholders.

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References
Agrawal, A., Schaefer, S. and Funke, T., 2018. Incorporating Industry 4.0 in Corporate
Strategy. In Analyzing the Impacts of Industry 4.0 in Modern Business Environments (pp.
161-176). IGI global.
Bereznoi, A., 2015. Business model innovation in corporate competitive strategy. Problems
of Economic Transition, 57(8), pp.14-33.
Canon.com.au (2019). Canon Australia - Cameras, Printers & Multifunction Devices.
[online] Canon Australia. Available at: https://www.canon.com.au/ [Accessed 14 May 2019].
Dobni, C.B., Klassen, M. and Sands, D., 2016. Getting to clarity: new ways to think about
strategy. Journal of Business Strategy, 37(5), pp.12-21.
Gassmann, O., Frankenberger, K. and Csik, M., 2016. Innovation Strategy: From new
Products to Business Model Innovation. In Business Innovation: Das St. Galler Modell (pp.
81-104). Springer Gabler, Wiesbaden.
Global.canon (2019). [online] Global.canon. Available at:
https://global.canon/en/ir/annual/2018/canon-annual-report-2018.pdf [Accessed 14 May
2019].
Kane, G.C., Palmer, D., Phillips, A.N., Kiron, D. and Buckley, N., 2015. Strategy, not
technology, drives digital transformation. MIT Sloan Management Review and Deloitte
University Press, 14, pp.1-25.
Kavadias, S., Ladas, K. and Loch, C., 2016. The transformative business model. Harvard
business review, 94(10), pp.91-98.
Kono, T., 2016. Strategy and structure of Japanese enterprises. Routledge.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-
54.
Rawlins, J.D., 2018. Inventio through Praxis: Connecting Competencies with the Canon.
In Rhetorical Theory and Praxis in the Business Communication Classroom (pp. 47-64).
Routledge.
Ritter, T. and Lettl, C., 2018. The wider implications of business-model research. Long
Range Planning, 51(1), pp.1-8.

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Soltanizadeh, S., Abdul Rasid, S.Z., Mottaghi Golshan, N. and Wan Ismail, W.K., 2016.
Business strategy, enterprise risk management and organizational performance. Management
Research Review, 39(9), pp.1016-1033.
Teece, D.J. and Linden, G., 2017. Business models, value capture, and the digital
enterprise. Journal of Organization Design, 6(1), p.8.
Yuzawa, T., 2018. The digital revolution and business behaviour: the case of Kodak versus
Fujifilm. Entreprises et histoire, (1), pp.37-50.

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Appendix
Figure: Financial Highlights of Canon
Source: Global.canon 2019