Today’s article will bring back a lot of memories since this article will take you back in time. If you’re a 90s kid or even older, you must remember the significance of photographs and photo albums.
Just close your eyes and think about the photo album containing all your childhood photos. Doesn’t it feel like all your childhood is enclosed in that album?
Over the years, digital photographs have been way more convenient to handle as technological development has taken place. However, nothing beats the smell and feeling of holding a photograph.
As we are talking about photographs, how can we forget one of the leading companies famous for producing photographic equipment such as cameras, photographic films, developing photographs, and other similar products?
Kodak was one of the most well-known brands in the entire photography industry. Today, we will conduct a Kodak SWOT Analysis to analyze the internal and external factors that influence the operations of Kodak in detail.
This article will also look into the history of Kodak so that we get to know how it got established and how it evolved over the years to be where it is currently. So let’s proceed further and discuss the history of Kodak.
Kodak was established in 1888 by George Eastman in New York. This company was established to provide photography, film, and imaging services. In the same year, Kodak launched its first product, a camera.
This camera was ahead of its time since it was very modern and easy to use. Kodak cameras were already attracting a large audience. However, Kodak kept its prices low to penetrate the market, which increased its sales enormously.
Over the years, Kodak introduced different types of cameras and black-and-white films. Finally, in 1935 Kodak achieved a milestone when it introduced the world’s first color film called Kodachrome.
Kodachrome became one of the most and longest-selling products of Kodak.
Due to the company’s increasing popularity, Kodak reached sales worth $1 billion in 1962. In the coming years, the popularity of Kodak further increased since Kodak’s camera and technology were used to film earth from space. Moreover, the first X-ray was also observed on Kodak’s film.
In the 1980s, Kodak faced competition when Fujifilm arrived at the scene. Later, in the early 2000s, Kodak started feeling the threat since its profit margins began to shrink as the world shifted to digital cameras. People didn’t feel the need to buy Kodak’s main product, film rolls.
Later, Kodak shifted to digital technology by producing digital cameras and printers. However, it was too late since other companies had already captured the market. After that, Kodak nearly survived for a decade. However, in 2012, Kodak filed for bankruptcy.
Recently, In the 2020s, Kodak has arrived again on the scene. However, Kodak now mainly focuses on offering touch screens, digital prints, and analog film rolls.
Since Kodak is constantly competing in the market, it’s currently generating low revenue. In 2021, Kodak’s revenue was $1.1 billion. Although this revenue seems very small compared to the previous years, it marks significant growth.
Now that we have discussed the eventful story of Kodak, let’s proceed ahead and carry out Kodak’s SWOT analysis. First, however, to do that, you need to know what SWOT analysis is.
A SWOT analysis is a business technique used by businesses to analyze the strengths, weaknesses, opportunities, and threats faced by any organization. A SWOT template is used to represent a SWOT analysis’s findings efficiently.
Now that we have discussed the SWOT analysis, let’s proceed further and carry out Kodak’s SWOT analysis.
Strengths are the strong points that every business possesses. Due to these strengths, brands can compete and function in the market. Therefore, the success of a company depends on the number of strengths a company possesses.
In this section, we will highlight some of the strengths that Kodak possesses.
It may be any industry, but renowned brands always have the edge over their competitors since audiences are already familiar with their names.
In Kodak’s case, Kodak is a huge name. People living all over the globe are familiar with Kodak. Having such a renowned name will benefit Kodak in penetrating the markets once again.
Moreover, knowing Kodak’s popularity back from the 1900s to 2000s, there must be a lot of Kodak’s loyal customers waiting for the brand to re-emerge so they can once again consume the products launched by their favorite brand.
Brands need to be technologically advanced to compete with other brands in the market since customers only like technologically advanced brands.
Kodak has always been known for being a technologically advanced brand. Kodak was ahead of its time as it introduced one of the world’s first color films. Moreover, it also introduced easy-to-use cameras, which were very new at that time.
Being technologically advanced acts as a strength for Kodak since this attribute will help the company to grow in no time.
Socially Responsible Brand
If a brand wants to get big, it has to be socially responsible. Being socially responsible increases the brand’s customer base, which increases the company’s revenue.
As a responsible company, Kodak is invested in giving back to the environment and society. Kodak contributes to reducing greenhouse gasses and emissions by boosting energy efficiency for every project it does.
The brand also supports local communities by donating products, goods, and excess material for recycling in recycling facilities.
Since Kodak has always proved to be a socially responsible brand, it has a positive reputation which will help the brand increase its revenue.
Weaknesses are the shortcomings of a company due to which it lags. Every organization possesses some weaknesses. In this section, we will analyze some of the weaknesses that Kodak possesses.
No Online Shop
In today’s world, every other company has an online store through which millions of people shop every year. As a result, online sales play a significant part in generating revenue.
Kodak has not yet integrated its site with other shopping platforms like Walmart, Amazon, and some e-commerce sites. This is a matter of concern as they lose ample opportunity to earn more by offering their products on different trading platforms.
Due to the absence of Kodak’s online presence, customers are diverted to other brands offering similar products.
Not Sufficient Marketing
Have you ever seen Kodak’s advertisements on TV, the internet, on billboards, or anywhere? Probably not. This is because Kodak doesn’t market its products well.
Marketing has emerged as the most essential tool determining a company’s sales. A brand needs to market its product properly through digital and print media. Social media is one of the most significant platforms used by companies to market their products.
Kodak doesn’t use any of the given platforms properly to market its products, due to which the brand is not experiencing high sales.
Bankruptcy Has Damaged The Name of The Brand
Bankruptcy is a terrible thing for any business since it not only makes the company suffer financially but also damages its reputation.
Kodak was one of the leading companies a few decades ago, and it has ruled over the market for more than a century. However, later it went bankrupt since it didn’t embrace the change promptly.
This has earned the brand a bad name. Now investors and employees working at Kodak must be worried that if Kodak had gone bankrupt once, it could go bankrupt again. Hence, the bankruptcy damaged the reputation of Kodak in the market.
Every organization is provided with opportunities to grow big. However, only a few companies manage to grow because others fail to identify the opportunities ahead of them. In this section, we will discuss some opportunities for Kodak to grow.
Expansion In The Product Line
To expand, brands need to expand their product line because that’s how they will attract more customers.
Kodak was once famous for all photography-related products. Back then, it had a very diverse product line. However, after it has resurfaced, it lacks product diversity. Therefore, Kodak should look forward and expand its product line to gain maximum customers.
Kodak can enter the laptop or smartphone industry along with its current products. This will benefit Kodak in increasing its revenue.
Businesses must expand geographically to increase their customer base and revenue. For example, Kodak was once spread all across the globe. Later, it had to decrease its geographical presence due to a lack of financial resources.
However, currently, Kodak operates in some countries. Kodak can increase its geographical presence by expanding its operations in different countries. By doing so, Kodak will increase its customer base and revenue.
Build Strategic Alliances
Companies need to form strategic alliances with other companies. By doing so, companies grow and increase their profit margins.
Kodak has many alliances and partnerships across numerous industries and has successfully integrated with its business partners. However, they need to integrate their operations and outsource to different partners to control costs and improve profitability.
Since every company has a competitive advantage in different operations, working together will help Kodak achieve excellence at a minimal cost.
Like any other company, Kodak faces great threats from the external environment. These threats must be addressed timely, or they can hinder the growth of Kodak. However, to address the threats, it is important to highlight what threats Kodak faces.
In this section, we will shed light on some of the threats that Kodak faces.
High Buyer’s Power
Different industries have different types of buyer power. Industries in which buyers dictate the prices of commodities have higher buyer power. On the other hand, industries where suppliers influence the prices are said to have lower buyer power.
Kodak operates in an industry where buyers have a lot of power. This is because consumers can switch to any brand without paying high switching costs. Due to this, Kodak has to constantly innovate and meet the demand of its customers, or else consumers will switch to its competitors.
Risk of a Global Recession
Recessions damage businesses significantly as they tend to lower people’s living standards, due to which demand for products falls. After the Pandemic and Russia-Ukraine war, a global recession is predicted to be knocking at our doors.
If there is a recession, it will leave Kodak as one of the most affected companies. Currently, Kodak is in a rebuilding phase, and it cannot afford to experience a recession. If there is a recession, the demand for Kodak’s products will fall, and Kodak may have to exit the industry forever.
Businesses always try to avoid competition since competition among businesses results in decreased profit margins and division of customers.
Previously, Kodak’s market share had declined gradually over the years due to industry rivalry, price wars, and intense competition. Kodak faces similar threats from its competitors today.
Kodak SWOT Analysis: Final Word
Kodak was one of the most renowned brands that used to manufacture products related to the photography industry. It made its place in the market due to innovation and excellent products.
Later, it had to experience losses since it failed to embrace change timely. After getting bankrupt, the company changed its product line and again entered the market.
To examine the operations of Kodak in detail and analyze what internal and external factors impact its performance, we conducted a Kodak SWOT analysis. Through this SWOT analysis, we learned about the strengths, weaknesses, opportunities, and threats faced by Kodak.
The findings of this SWOT analysis can be represented comprehensively through a SWOT Matrix or a SWOT table. However, the purpose of this article was to make you aware of the internal and external factors that impact the performance of Kodak.