Eastman Kodak And Fujifilm: A Tale Of Two Companies

2578 words - 11 pages

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Eastman Kodak and Fujifilm |
A Tale of two Companies |
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Roosevelt NickelberryAugust 12, 2013 |
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Introduction
Under examination is a tale of two companies; Eastman Kodak and Fujifilm. The ambitious topics under discussion are: the history and core business of each company, the approach to administration that each company has followed in order to grasp improvement, what management variances have impacted their comparative achievements, an evaluation of each business’s method to ethics and social accountability and the bearing those methodologies have had on each company’s cost-effectiveness. Also, there will be a dialogue on the extent to which the ...view middle of the document...

“Cameras were sold preloaded with film. Upon completion of the roll, the user returned the camera with the film in it to Kodak, who took out the film, developed and printed it, loaded a new film into the camera and
returned all this to the user. With the elimination of the need for knowledge about development, photography became feasible for the layperson, enabling him or her to perform this new role with ease” (Munir & Phillips, 2005).
History of Fujifilm
In September 1919 Dainippon Celluloid Company Limited, with factories in Kanzaki, Aboshi, Sakai, and Tokyo, was created through the unification of eight celluloid manufacturers. In March 1926, a new division for motion picture ingredients, which later became the Motion Picture Products Division, was launched at the primary office. At first this business made no money, but in time Nagase became the leader in film sales in Japan and established a close relationship with Eastman Kodak. Later, Dainippon Celluloid Company (now Daicel Chemical Industries, Ltd.) was the first Japanese company to successfully manufacture movie film. In January 1934 Photographic film operations are spun off to form Fuji Photo Film Co., Ltd. According to the company website Fujifilm, (named after the famous mountain in Japan) “from its roots as a photographic film manufacturer, has steadily pursued innovative solutions in an increasingly broad range of fields, from imaging to medical systems” (© FUJIFILM Corporation). In the 1930’s their primary products were motion picture, plate-making and x-ray film. In the 1940’s color reversal film and still cameras were introduced. Each decade the company has continued to push the envelope of film photography innovation.

The Core Business Model
The core businesses of Eastman Kodak as of January 2012 were: retail systems solutions, document scanners and digital plates. The growth businesses are: consumer inkjet, digital printing solutions, enterprise workflow software and services, and packaging solutions. During that time the company was trying to secure a $950m debtor-in-possession facility to provide liquidity and to re-finance its existing revolving loan, allowing it to restructure under Chapter 11 bankruptcy protection (Francis & Nias, 2012). The core business of Fujifilm is not film. Its latest endeavor is cosmetics. Cosmetics are a natural progression for a company whose origins begin with expertise in chemistry. As the digital age came upon us, “What Fujifilm did was to look further than simply moving to digital photography from analog. Instead, the company tapped its chemical expertise for broader uses, such as drugs and liquid-crystal display panels. Cosmetics, as well: It seems the process for stopping photos from fading can be used on skin, too” (Inigaki & Osawa, 2012). According to the Wall Street Journal, Fujifilm now makes only around 1% of its revenue from photographic film, down from nearly 20% a decade ago. Its health-care operation, which...

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