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CASE STUDY: Eastman Kodak
1. What factors motivated Kodak to change its organizational architecture?
For many years, Eastman Kodak had a virtual monopoly in film production. By the 1980s, Kodak’s market environment had changed dramatically, due to the following reasons:
- The Fuji Corporation produced high-quality film that eroded Kodak’s market share;
- Increased competition from generic store brands;
- A technological explosion. Improved communications, design capabilities, and robotics allowed companies to bring new products to market within months rather then years;
The consequences of these changes were:
- Decline in Kodak’s stock prices by 16%, whereas stock prices for the market as a whole increases;
- Earnings per share at Kodak also dropped significantly.
Approximate Word count = 552
Approximate Pages = 2.2
(250 words per page double spaced)
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