Strategic Plan (Essay Sample)

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Strategic Plan for Eastman Kodak
Eastman Kodak is one of the global brands that dominated the photography industry before the coming of digital technology. In almost all the countries of the world, Kodak Kiosks and photography products were the most trusted in the market (Kodak, para 7). This ended in the start of the 21st century when digital technology rendered the traditional photo processing obsolete. Several electronic companies entered the digital electronic market with better products and mobile Smartphone started taking over the role of traditional cameras. People stopped processing photographs into hard copy and preferred to share online. Kodak was late in reacting to these market changes and almost went into insolvency because of reduced sales. The following is a strategic plan for Eastman Kodak to help it recover from its current position. The plan focuses on the next 5 years of the company.
Eastman Kodak SWOT analysis
The following is the SWOT analysis for Eastman Kodak that will help in directing the best strategic plan. The plan will seek to capitalize on the strengths and reduce the weakness. I. Strengths
The company has many years experience in photography. Kodak has a strong brand name. The company has global presences. Kodak retains its distribution network. The company has a huge asset base and financial resources
Weaknesses
Kodak lacks long-term strategy on innovation, has a rigid workforce, Company culture does not encourage change, has difficulty in pushing marketing innovative product and has little experience in digital technology
Opportunities
The digital market is growing fast, and opportunities for innovative products exist. The emerging economies can offer Kodak good market
Threats
The company faces the threat of entrants into the photography industry, changing culture in the digital technology, Stiff competition from electronic companies, and online platform makes analogue photography obsolete
Kodak’s Strategic Direction
Kodak needs to shed off the weaknesses that have pulled it behind for the last decade. In the next two years, Kodak must carry out a radical change in its workforce. Lucas and Goh believe that a change in organization culture in Kodak in needed urgently (53). The company will have to retire the rigid workforce that still believes the company’s future belongs to photography. During this period, the company should look for senior managers and middle level managers who are inclined to the digital world. This will help place the company in the hands of a workforce that believes in change. Eastman Kodak then needs to diversify its investment into both hardware and software digital technology. The company may need to acquire an established electronic company or outsource productions services from the emerging countries. This will enable the company to come up with a variety of digital electronic products that have superior visual ca...