Sunday, January 5, 2020
Kodaks Potential Niche for Digital Picture Frames Free Essay Example, 2750 words
Kodak products are bought both by individual customers on a small scale and are also large-scale investments by companies particularly health care firms. Though Kodak health imaging products and services are not faced with the slump, it is the imaging supplies to the general customers which are resulting in a decline. Film developing is almost obsolete and therefore is no longer generating revenue from that sector. Inflation is making a huge impact on customers when making decisions to invest in cameras and Kodak being highly priced than Sony or Canon often loses the race in this regard. Also, Canon and Nikon's products are far more popular in the photojournalist market and Kodak also cannot win the race their too. Since Kodak has to invest a lot to develop digital technology, one of its key strategies was to use its profits from film sales to invest in research and development. Since profits from film sales are low, Kodak needs to finance digital research and development from other areas. These also means that Kodak is feeling the crunch financially from the decreasing cash flows from a film to the huge investments made in digital to the scant profits made from the digital segment which was supposed to be the new cornerstone of the company. We will write a custom essay sample on Kodak's Potential Niche for Digital Picture Frames or any topic specifically for you Only $17.96 $11.86/pageorder now Since these photo frames are multi-purpose and can display slideshows they provide value to users who normally have to buy multiple frames to display their precious photographs and thus are economical. It is the changing trends in the social environment which can greatly help Kodak coming up with a new product and marketing it effectively. The greatest change in social trends has been the birth of internet communities and frequent sharing of images. This has led to the bursting growth of digital photo sharing with uploading and decreases the need for photo development on film. Kodak tried to capitalize on this trend like its competitors but was not extremely successful but it should know that if it sticks to its slogan and makes digital photography even more convenient than a pencil than it can again be an icon.