Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances
In January 1988, Colby Chandler, Kodak CEO, created the Corporate Information Systems (CIS) and appointed Katherine Hudson head. She at once became the first head of IT and first woman corporate vice president in the company. Throughout 1989, Hudson inaugurated a series of organizational initiatives that not only would dramatically change the IT function within Kodak, but would rock the industry. She outsourced data center operations, telecommunications services, and personal computer support to IBM, DEC, and Business Land, respectively. Case presents the complexities in managing information systems through partnerships.
Swot Analysis of "Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances" written by Lynda M. Applegate, Ramiro Montealegre includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kodak Hudson facing as an external strategic factors. Some of the topics covered in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances case study are - Strategic Management Strategies, Joint ventures, Organizational structure, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances casestudy better are - – increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing household debt because of falling income levels, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kodak Hudson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kodak Hudson operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances can be done for the following purposes –
1. Strategic planning using facts provided in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances case study
2. Improving business portfolio management of Kodak Hudson
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kodak Hudson
Strengths Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kodak Hudson in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances Harvard Business Review case study are -
Highly skilled collaborators
– Kodak Hudson has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Kodak Hudson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kodak Hudson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Kodak Hudson digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kodak Hudson has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Technology & Operations field
– Kodak Hudson is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Kodak Hudson in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Kodak Hudson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Technology & Operations industry
– Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances firm has clearly differentiated products in the market place. This has enabled Kodak Hudson to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Kodak Hudson to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Kodak Hudson is one of the leading recruiters in the industry. Managers in the Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Kodak Hudson
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kodak Hudson does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Kodak Hudson is one of the most innovative firm in sector. Manager in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Kodak Hudson has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Kodak Hudson is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Lynda M. Applegate, Ramiro Montealegre can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances are -
Slow to strategic competitive environment developments
– As Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances HBR case study mentions - Kodak Hudson takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Kodak Hudson has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances, in the dynamic environment Kodak Hudson has struggled to respond to the nimble upstart competition. Kodak Hudson has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Kodak Hudson has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Kodak Hudson even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Kodak Hudson products
– To increase the profitability and margins on the products, Kodak Hudson needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Kodak Hudson needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High cash cycle compare to competitors
Kodak Hudson has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Kodak Hudson, firm in the HBR case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Kodak Hudson has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Kodak Hudson has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances, is just above the industry average. Kodak Hudson needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances are -
Leveraging digital technologies
– Kodak Hudson can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kodak Hudson can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Kodak Hudson can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Kodak Hudson can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Kodak Hudson can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Kodak Hudson to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Kodak Hudson can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Kodak Hudson can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Building a culture of innovation
– managers at Kodak Hudson can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Using analytics as competitive advantage
– Kodak Hudson has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kodak Hudson to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kodak Hudson to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Kodak Hudson to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Kodak Hudson has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Kodak Hudson to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Kodak Hudson has opened avenues for new revenue streams for the organization in the industry. This can help Kodak Hudson to build a more holistic ecosystem as suggested in the Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances case study. Kodak Hudson can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances are -
Environmental challenges
– Kodak Hudson needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Kodak Hudson can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– Kodak Hudson has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Kodak Hudson needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances, Kodak Hudson may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Kodak Hudson will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Kodak Hudson
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Kodak Hudson.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Kodak Hudson in the Technology & Operations sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kodak Hudson can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kodak Hudson with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Kodak Hudson needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kodak Hudson in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Kodak Hudson business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Kodak Hudson can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Eastman Kodak Co.: Managing Information Systems Through Strategic Alliances is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Kodak Hudson needs to make to build a sustainable competitive advantage.