Kodak and Fujifilm Research Paper Example | Topics and Well Written Essays - 1500 words

Kodak and Fujifilm - Research Paper Example Kodak, however, would retreat into 327th in the year 2011, filing for chapter 11 bankruptcy protections in 2012. Kodak’s failure to adapt to the digital age was cited as a major cause for this. However, Kodak had invented the first digital camera in 1975 and aggressively immersed itself into this new business, promoting M&A, but was unable to use the strategies for profit. Kodak began struggling with numerous problems from the late 70s; this included the challenge brought by the instant camera and increased competition in the Polaroid camera with Fujifilm. While a succession of CEOs attempted to deal with these problems in order to improve the company’s business, they were largely unsuccessful (Elkins, 2011). This can be explained by Clayton Christensen’s â€Å"innovator’s dilemma†. Fujifilm Co. Ltd. began, on the other hand, as a producer of cinematic film and grew into a manufacturer and marketer of information and imaging products. It grew into t he largest photographic filmmaker for the Japanese market and competed with Eastman Kodak for market share on the global stage. Fujifilm, on top of pushing a variety of still camera film, color paper, photo-finishing equipment, motion picture film, and color paper chemicals, also entered the digital sphere, making flat panel display materials, medical imaging products, media for digital recording, office printers and copiers, as well as digital cameras (Elkins, 2011). They derived approximately a half of their revenues from Japan with 20% in North America, 14% in the rest of the Asia-Pacific region and another 14% in Africa (Elkins, 2011). However, the company’s focus diversified greatly from negatives, with its imaging solutions unit being the smallest. Its photographic paper chemicals, photofinishing equipment, digital cameras, as well as photographic papers and films, are its biggest investment in the last 20 years. The main business in Fujifilm that accounts for over 40% of sales includes; information related services and products as well as document operations. Its document business involves a joint venture with Xerox to offer printers, copy machines, and production services. Its information unit handles flat panel and optical display components, recording media, large scale printing, and medical imaging (Elkins, 2011). Comparing and contrasting the approach to management that each company has pursued in order to embrace innovation. Kodak faced criticism for its slow response to the digital age because of a conservative culture, coupled to a complacent monopolist nature that affected its ability to embrace its own innovations, like the digital camera that it invented in the mid-70s (Baron, 2010). Clay Chandler, the CEO at that time promoted a culture of innovative diversification. However, CEOs that came after him denied the policy and did away with many promising ventures for the future by taking to resource selection and concentration. By stickin g to film, they ignored the innovation of digital printers and cameras, categorizing itself as an imaging company. The main reason that Kodak faced bankruptcy had to do with its concentration on narrow business field that prevented it from developing on innovations (Baron, 2010). Fujifilm, in many aspects, had a common business trajectory to Kodak on its founding. However, the major changes that came with the digital age and the dangers portended by this innovation to the film industry saw Fujifilm attempt to find new businesses, especially as it was vertically oriented,