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Kodak VS Dyson
Transcript of Kodak VS Dyson
A short introduction
Kodak / Dyson
Eastman Kodak Company
the company originally produced dry plates.
Eastman invented the
release of a
. The idea was to make
photography accessible to everyone.
Kodak's Sales hit $10 billion in 1981.
Kodak successfully dominated the industry it created for more than a century in 2000 it still had 80% of the film market share
Kodak filed for
British business operating in over 70 countries
Its first major success was the
due to its use of
High market shares in UK, Australia and the US
Dyson has become known for a number of other differentiated products over the years.
What went wrong with Kodak?
Razor and blade strategy
attract costumers with
low cost cameras
and make profits on
higher priced films and prints
(filmless technology) represented a
for this sale strategy
Kodak was aware that in ten years
digital may replace films
prepared very little
and tried to protract the usage of films as long as possible
Kodak didn't want to take the risk of giving up on a profitable business to enter a new developing one and this determined the major part of its failure.
Key Turning Points for Dyson
Breaking into the
Diversification into new markets:
Key Turning Points for Kodak
Management vs Management
Kodak's Management Failure
What are we going to look at
There are three main points we are going to focus our presentation on:
Why those holding Kodak shares and pensioners have sustained huge losses in recent years and why those who helped Dyson are now super-rich?
The key turning point in the recent histories of Kodak and Dyson and the impact of these on the fate of the companies
What management lessons can be learned from Kodak and Dyson' s experiences?
"Take everyday products that don't work well and make them work better"
Freedom in a creative Industry
Investment and Diversification
"Truly original ideas come to life when people dare to be different. It's a combination of inventive engineering, passion for technology and brave design" (Dyson, 2014)
"The most fascinating times at Dyson are the daily challenges of innovation. The constant search for new ways of doing things is what leads to new technologies like the bladeless fan."
Senior Fluid Dynamics Engineer
Research & Development
Kodak's investments and the impact of technology
Not all success for Dyson
Engineers and Innovators
Rigid management techniques
Clear Hierarchical structure
was introduced . This is considered the starting point for low cost and mass accessible photography
The introduction of the new
of photographs in
The product never achieved the success Kodak had forecasted
"- How Kodak missed the Digital Revolution.
Kodaks R&D engineer Steve Sasson invented the
"Well, you'd be suprised at some of the breakthroughs and innovations that Kodak was doing" - Steve Sasson
Founded on the culture of
more and more rigid
It was so hierarchically oriented that everybody looked at the guy above him for what needed to be done
" - G. Fisher, CEO of Kodak
Despite having all the possibilities to dominate the digital revolution the company was full of
: G. Fisher himself had to face a
resistant to change
and with an
exaggerated opinion of itself
"At Kodak we don't worry about the market, we are the market"
- fellow member of the Rochester Jaycees, 1970
Kodak choose the
rational model of management
slow change, little uncertainty, low risk
a constantly changing environment as
the technology sector
their management strategy wasn't suitable to keep up with the constant evolution and innovation the sector requires
the production of the
just when it was about to explode in popularity.
Kodak tried to diversify into the
drug and household industry
, leading to a series of
CD Picture Storage
in 1990 was a
amateur inkject printer
, for many years it relied on
in retail stores missing the opportunity of diversifying into the printer market
, when the digital technology was about to explode Kodak invested 1 billion dollars in a
new film plant in China.
Washing Machine: "
Production moved to
"As a washing machine, it was a great success. As a business, it wasn’t. We made a washing machine that was too expensive; it had too much technology." (Dyson, 2012)
"Making this washing machine was the most wonderful educative failure. Success is not always as enjoyable as you might think. When something’s a success, the results are clear. Failure is an enigma. You worry about it, and it teaches you something.” (Dyson, 2012)
Dyson Robot: "The Dyson 360 Eye", set apart by its unique camera system
Kodak's advertisement campaign initially suited the target market perfectly,
making photography accessible to the masses.
The image of the '
while also holding an element of
through the years maintaining interest and the notion that
Kodak failed to keep up with technological advancement, as revealed in their desperate
promotion of 'preservation'
and viewing pictures from a wall instead of from a computer.
Technology, Investment and Diversification
Focus on what makes them different
Dyson advertises to promote its focus on ingenuity and the ability to be better than the competition.
Its unique selling point is it's engineering and how it makes its products.
Kodak's future seemed non- existent; the company filed for bankruptcy on January 19th 2012
The company sold its digital imaging patents for $525 million.
Now, Kodak is negotiating with movie studios for an annual film order guarantee.
Overall Kodak has won 9 Oscars for their contribution to film.
Those holding Kodak shares and Kodak pensioners have sustained huge losses due to the great decline of Kodak's Profitability and market share.
A key turning point in Kodak's recent history was certainly the fact that they missed the digital revolution together with the failure of Photo CD system as it made them even more risk and technology adverse.
Kodak's failure reveals that a rigid hierarchical structure is not always the way to successfully run a business.
Dyson Company keeps growing and the profit of a company is increasing and of course those who helped Dyson are very rich now
The key turning point in Dyson's recent history is a movement of the whole production to Malaysia
From Dyson's management experience it can be learnt that a big company must take risks in order to be successful
Key to Dyson's success
failure to drive success
Creating lots of
not afraid to take
Most inventions in Dyson are based on
Enormous investments in
Research and Development
James Dyson emphasizes
Dyson has over 1900
Takes an advantage of
It was filmless photography so managements reaction was 'that's cute - but don't tell anyone about it'
" - Steve Sasson, the Inventor of the Digital camera.
Dyson does not believe in the term "Branding"
The business is only as good as it's product
Never advertises as the cheapest, they advertise that they are the best at what they do
Investing £250 million to expand the the company headquarters which will create 3,000 jobs
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Barriers to Change: The Real Reason Behind the Kodak Downfall - Forbes. 2014. Barriers to Change: The Real Reason Behind the Kodak Downfall - Forbes. [ONLINE] Available at: http://www.forbes.com/sites/johnkotter/2012/05/02/barriers-to-change-the-real-reason-behind-the-kodak-downfall/.
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Dyson hoovers up £1bn in revenue
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Dyson's profits rise to £190m
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Dyson's profits double thanks to R&D investment
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James Dyson's latest invention: bladeless fan
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Dyson robot vacuum cleaner revealed in Japan
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Frustration and failure fuel Dyson's success
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James Dyson on using failure to drive success
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Priced at £1,000 but production was stopped in 2005
Businessman v's The Engineer
800 Job Losses in the UK
Dyson management style
Flat organizational structure
- the one with few or no levels of middle management between staff and executives
Sir James Dyson prefers
with his employees
He is a very
"We don’t have technicians, so engineers go and make their own prototypes and rigs. Letting people try out their ideas, getting them totally involved, that’s really important"
By capitalising on the
emotional marketing techniques
and celebrity endorsement to attract consumers.
Two different management styles: