Reply to question received from my professor in my discussion on Industry evolution and change

Reply to a question received from my professor in my discussion on Industry evolution and change.

Hey there, I received a question from my professor regarding the discussion that I posted. Please see below:

Q1- Given the nature of the company decline, dow did the company initially respond to these challenges, and what were some of the key changes it eventually implemented to ensure its survival and regain its competitive edge?

please read the discussion below, and make a reply to these questions.

Please separate the answer into a separate file.

Important:

Please note that it is important to include sufficient references in the work and ensure zero plagiarism.

Discussion

Industry evolution and change

           Eastman Kodak is a multinational technology company offering high-quality products and services for entertainment, manufacturing, publishing, and packaging. However, the company is mainly known for photography. Eastman Kodak experienced challenges like any other business. At some point, the company almost collapsed due to failure to adapt to the changing market environment but concentrated on protecting the business’ existence. Hence, other key players in the photography industry gained a competitive advantage over the company by adopting digital technology. Bankruptcy was also among the challenges faced by the company. However, George Eastman later recognized the need for effective strategic plans to ensure business survival amidst stiff competition and overall business success.

Factors supporting the evolution of the Kodak photography industry

Kodak’s photography industry transitioned from traditional photography to digital imaging for various reasons. First, there was a change in consumer needs and demands. The tested success of digital imaging resulted in significant success for the company. For instance, the new adoption resulted in Kodak being among the US market leaders after Canon and Sony. The company’s decline in performance witnessed between 1991 and 2011 triggered the need to adopt change for the company’s survival. The emergence of new imaging technologies and increased competition motivated Kodak to change its operational strategy by introducing data storage products like floppy disks, the leading megapixel electronic image sensor, computer-assisted image storage and retrieval systems, and many more (Grant, 2021). As a result, Kodak had to invest in research and design and forego the traditional photography approaches.

Industry lifecycle of Kodak

Kodak was in the decline phase in its quest for a digital transformation. For instance, the company was ranked top in the global photography market. Besides, the performance in terms of revenue also qualified the company to be among the best performing. However, within a few years, the company recorded a massive decline in revenue, overall performance, and employee loss. The leading cause of the performance decline is the failure to adapt to the changing market conditions and consumer needs (Almansoori, 2020). The company was almost becoming irrelevant in the market until it embraced digital transformation like other competitors, reassuring Kodak of improved market performance. According to Grant (2021), some of the changes that supported the survival and awakening of the company were reliance on value-based solutions, flexible manufacturing processes, rapid prototyping, and digital technology.

New Kodaks’s strategies for its survival

Initially, Kodak relied on analog technology, high margins, heavy infrastructure, mass production and extensive inventories, significant manufacturing processes, and value-based physical products (Grant, 2021). However, it was necessary and urgent for the company to embrace rapid change that would increase its survival rates, such as through replacing the old strategies with digital technology, rapid prototyping, reliance on lower margins and lean organization, just-in-time production, flexible manufacturing process, and embracing value based on solutions. Despite the changes, there was no rapid positive success. Hence, Kodak embraced a hybrid model while researching and redesigning its process, enhancing its success. Based on Suarez et al. (1995), positive responses to change help businesses survive even when at the decline stage of growth.

The most appropriate strategy

           The most appropriate strategy for the Kodak photography industry to embrace while at the decline stage of the industry life cycle would be digital technology. For instance, the leading cause of declined performance was the inability to adapt to the digital transformation in the photography world. Hence, other companies succeeded because of rapidly embracing digital technology.

Kodak’s management of strategic change

           Kodak identified some of the loopholes that resulted in its downfall. Hence, the company responded by embracing multiple approaches to fight for its survival. Though it took some time before fully resurfacing its initial market position, the company regained its competitive advantage. Still, it was forced to implement the changes rapidly because of the existing stiff competition.

Conclusion

In conclusion, strategic planning is essential for any business performance. Change management is part of strategic planning that companies should embrace to overcome competition. Kodak Photography is an example of a company that lost its competitive edge because of its failure to respond to change and adapt to new market trends. Despite being in the decline phase, embracing digital technology, among other strategies, helped the company survive.

References

Almansoori, S. H. (2020). Strategic change management: A transformative approach for sustaining change in UAE law enforcement. Police Thought, 29(113), 279–310. https://doi.org/10.12816/0055779

Grant, R. M. (2021). Contemporary strategy analysis. John Wiley & Sons.

Suárez, F. F., & Utterback, J. M. (1995). Dominant designs and the survival of firms. Strategic Management Journal, 16(6), 415–430.