Twenty years ago, Kodak was an established and highly competitive company in the image and film technology markets. However, the dynamics of the telecommunications business had a substantial impact on its viability, resulting in decreased turnover, revenues, and profit margins (Apte & Kapshe, 2020). The firm has difficulty achieving its initial financial capital and market share. It had $1.03 Billion in sales by 2020.
It generated sales of $11.40 billion for the company in 2005. However, the pace dropped to $5.99 Billion in 2010, $1.80 Billion in 2015 and $1.03Billion in 2020. (Laricchia, 2022). According to Laricchia, 2022, the revenue reduction indicates that market share and turnover rates have decreased significantly. A decreased revenue resulted in a decrease in the current ratio and obligations. Current ratio has increased, from 1.46 billion in 2009 to 2.61 billion in 2021. From $1.03 billion in 2009 to 1.61 billion by 2021, the company saw an increase in its consolidated revenues of $1.12 trillion. In 2020, the corporation made a net profit of $12 million from a net deficit of $541.
Suggestion for enhancement
In the last 20 years, their growth rate has been extremely low. They must spend in R&D to control market rivalry and ensure long-term viability (Hill, 2022). New administration must identify market niches, and adapt its imaging technology to meet the needs of customers. Targeting the young generation, especially the millennials, and the Z generation, will help the firm to meet their demand for quality images and videos. The business can conduct continuous market research to find untapped markets to boost revenue and turn over more money. Additionally, it must promote innovation and originality. Kodak’s brand equity suffered because of its slow response to culture. Consumers are more likely to change their mind than corporations if they see no innovation, which can lead to a decrease in market share. The organization would be able to increase its revenues and image by developing an innovative strategy.
Strategies to achieve long-term competiveness
Kodak needs to reevaluate all aspects of its business, corporate and functional strategies in order to be competitive on the market. The enterprise must promote an operational innovation strategy to ensure continuous film and imaging technology progress (Lamb, 2020). The organization must hire people with diverse skills to foster innovation and ensure continuous growth and progression. WQ2usality’s innovation functional approach to WQ2usality is based on six-sigma. It is committed to improving quality through the creation of improved product designs and features that meet consumer expectations. The institution may implement a strategy to differentiate itself at the corporate level by investing in products that increase the company’s product value proposition. Due to the competitive nature of the market and the possibility of clients purchasing other items, differentiation strategies will help create unique products that increase company brand equity.
Strategy execution is key
The first step in identifying and defining the objectives is setting SMART goals. It is intended to improve annual income by 18% (from $1.15 to $1.36 trillion)