case study about kodak in china

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IBS Kodak in China a wote - Forma myChitosan were the Das Casco for Kota Che point gusto while de With a global operating experience for over a century, US-based com biggest dim manutdure which operates four busness segments name hotography, maging.com maging and other imaging bil 1). Koosk had presence in his teethury Batws natud Diem-1980s that accould be a foolin the world's most Komments in Chene and extensive promotion strategies to the companyentury Snoemd 1990s 2004 Kodeks revenue in China has grown by 40% Withony 20% of Chinese roues en matin 2004 Kode forecasts a tremendous growth certain future WW www. Wewe Kodak's Entry into China Kodekset up its estudiary in Shanghai, China 1927. Howe Kuressara fcurishes from 1980s. In 1934, Kocak gedoen in Fode Photograhic Concar home company in Foi province to tulid colour in production by 1993. Khadis Bergmand Shanghai occupying the third pointe Chinese program George Forenined as Presi and Chief Executive of Kodak recogned the group of the Chinese tecniche Chinese market Fisher established the Great China Regioning China Hong Kong and awan. Due to od growth in the Chinese photo som matching became Kada's largest market by 1994 1995 Kodaks 50% sales were from outside is domestic market of us. Koked to win Chine with expansions to beat is poctiva FPhoto Film Co. Ltd, Japanese immaker and a promoottorin China George Fisher the then Chairman and CEO, Kodak, said that the company's of money in 1995 and beyond for China By mid-1997, Kodak had 415 market share the 5250" Chinese program market Ouring see year Kodak employed aggressive plans to meet Kontoed Onesments HOP .. . WARGO . We OS We are case my written to Urso SCDC stories of the tombe 2005. BSCDC No part of the publication may be for se witbout the son of the che Dhe Case centre 305-039-1 Kode in China products by offering them incentives to the tune of $2000 Wietis Kodak was aiming to grab the 50% market share of Fujiin China. Patrick T Siewert Chairman of Kodak China, sad "China is one of the key growth markets fors In 1998, Kodak shifted its headquarters of Greater Asia Region from Hong Kong to Shanghai owing to its wel established manufacturing bases wit as low cost of production in the region. Henn Pol. Chairman and President, Kodak Gral Asia said, "Here in Shanghai, Kodak has found both marketing a big sea welas talented people a big amount for example, software engineers. We have found that Shanghai was an excellent base to have strong skild people Further in 1996, the photography giant, Kodak, renewed is commitment to the Chinese marieet by investing an astounding 51.2 billion in three non-profitable Chinese manufacturing companies of photographic is located in Shantou and Xiamen This represented Kodak's biggest overseas investment Commenting on this George Fisher said, we'll take a lossmaking industry of your hands and turn it around. The three companies were integrated into two enterprises namely Kodak (China) Co Lid and Kodak (Wux). With this deal Kodar acuired the rights to manufacture distribute photographic film and chemicals the Chinese market Commenting on increased presence of Kodak in China by the late 1990s, Daniel Carp President and CEO, Kodak said. "Today, Kodak is more than an international brand we are also a domestic company in China with world-class products. Operations and employees. We have successfully demonstrated how Sino-US cooperation can enable China to implement industry reform, improving productivity and efficiency to ove progress and economic growth Growth Strategies in China Daniel Carp said "Between 1997 and 1999, the Chinese digital imaging market grew by over 30 percent. We believe that China has enormous growth potential not only in traditional photography but also in digital imaging applications Kodak's strategies like introducing superior technology to the Chinese market with the help of Chinese government recruiting the right people and its adherence to Chinese culture, helped the photography giant to to the huge polenta Chinese market. In late 1999. Kodak developed a strategy for its next stage of develcome in China focusing on its total Stores Kodak Express and opportunities in the maging markets wits traditional as well as digital products. This strategy was an attempt to make cameras and fim processing more abobetots consumers. As part of its development Initiative, Kodak in 1999 introduced RMB 99.000 plan" in Shanghai Wen this inflive, Kodak planned to the Chinese photography market, which had a growth rate of 10% a year, The same year Kodak started improving ts existing manufacturing facilities in China as well as building new ones, through which the company expected to produce over 100 millonfimis per year David Swift Chairman and President Greater Asia Region Kodak said. "Our factories in China are essentially indistinguishable from the best of our plants anywhere By 1999 Kodak had around 5500 Kodak Express retail shops in China. Meanwhile China's possible entry o the World Trade Organisation (WTO) also signaled Kodaksturther prosent in China. Kada sected to benefit from lower uses and elimination of tanitis on certain Kodak's products Annecure 1 In 1999, Kodak stevenues from China had increased by 36% while profits escalated by 58%. In early 2000, Kodak (ChinaCo lid and Multi-Asia Manufacturing Company Limited entered into an agreement to encourage the Chinese photography market. With a start-up investment of HK$10 milion Muts Asia planned to commend 20 Kodak Express outlets in majorates of China in Shangha. Hartin Shenzhen Lianyungang and Guangzhou These outlets planned to focus on processing digital pictures in addition to the traditional flm products and its processing Chi-Sing Chairman of Multi-Asia said, "in tandem with China's economic growth. There has been significant increase in tim . www. Taman Dagga www. - Vouwwe 2000 200 - Towwww ida Gandang * Cenya www. Agter a woung IRS 2 Questions: 1. Why Kodak is considered as a multinational corporation? 2. Identify the transnationality index of Kodak in 1995. 3. What is the type of investment made by Kodak in China? Justify your answer. 4. Which reasons explain the investment of Kodak in the Chinese market? 5. Which company is the main competitor of Kodak in the global market? Are they leading the global market? Jus Lify your answer from the text ? 305-01 IBS Kodak in China "To be in the wron George For Dam DEO Conny In my canet de Maribor women besloot Den Gode Conan Foro Che produity area trailer With a global corting experience for over a century. US-based Eastman Kodak Company do's biggest film manufacturer which costes four business segments namely photography, main.com Imaging and other imaging mit 1 Kodak hadits presence in China senyerty Button the mid-1980, a kodak could gan footholdin the world's most pourth Oven and densive prodhon strategies helped the contestablishmente ry Schmid-1901.2004 Kodak's revenue in China has grown by 40% With only 20 of Chinese od posegan 2004 Kodak forecasts a tremendous growth potentiale Kodak's Entry into China Kodsk set up its first boary in Sunghai, China 1927 Howe Kobe Churches from 1980. In 1954. Koksnes Xiamen Foderatori Comodorescho company in Fui province to build colourfum production in By 1992. Kocha oticas bong Guant Shanghai occupying the third position in the Chinese photographic fiant Georgetoned as Presion and Chief Executive of Kodak recognized the growth potents of the Chinese meccandinhas the Chinese market. Fishe established the Greater China Region covering Chamong Kong and Taiwan Due tomad growth in the Chinese photo market, China became Kodas 17" restoy 1994 1996. Yoks as were from outsidels comestic manet of US. Kocak planned to grow heathens to beat tobal Fu Photo Flim Coud Japanese Simmstandaoni compector of Kodi China George Fshehehen Chairman and CEO Kadak sold that the company has a lot of money in 1996 anyone to China' By mid-1997, Kadakha 415 market share in the $250 million" Chrese patographic Dung year Kodakembyed aggressive markeang plans to increases sales Kondor Chirinys man ODORE These are by Umashankar Race, CDC .. e or in the Sun of the 2005. CDC Ne pan of the publication may be it www without the permission of the copyright case centre 305-039-1 Kodsk Chine products by offering the incentives to the tune of $2000. With this. Kocak asing to grab the 50% market share of Fajin China. Patrick T. Siewert Chaman of Kodak China, sad "China s one of the kay growth markets torus." In 1998, Kodakshied its toldguarters of Greater Asia Region on Hong Kong to Shanghai owing to its well established manufacturing base as well as low cost of production in the region. Henn Pett, Chairman and President Kodat Great Asia said, Here in Shanghai, Kodakhas found both marketing abg size as well as talented pecole a big amount for example, software engineers. We have found at Shanghai was an excelente o tave strong sidled people Further in 1998, the photography giant, Kodak, renewed its comment to the Chinese market by investing an astounding 51.2 bilion in the non-profitable Chinese mandaturing Comories of photographic filmed in Fuxi. Shantou and Xamen. This represented Kodeks biggest investment Commenting on this George Fisher said, 'we'll take a loss-making industry off your hands and turn it around. The three companies were integrated into two enterprises namely Kodak China Co Lasand Kodak (Wur, We this deal Kosak accured the rights to manufacture, distribute photographicflm and chemicals in the Chinese market Commenting on increase presence of Kodak in China by the late 1990s, Daniel Camp. President and CEO Kodak said, "Today, Kodak s more than an international brand we are also a domestic company in China w world-class produces operations and employees. We are sucosul demonstrated how Sno-US cooperation can enable China to implement industry reformitoring productivity and efficiency or progress and comic growth Growth Strategies in China Daniel Carp said "Between 1997 and 1999, the Chinese dotat maging market grew by over 30 percent. We believe that China has enomous growth potential not only in traditional photography but also in digital imaging sapilations." Kodak's strategies like introducing superior technology to the Chinese market won the help of Chinese government recruiting the right people and its adherence to Chinese culture helped the photography giant to tap the potential of Chinese market. In late 1999, Kodak developed a strategy for its next stage of develoment in China focusing on total stores Kodak Express and opportunitieho maging markets with traditional as wel as digital product that strategy was an attempto make cameras and fim processing more accesible to its consumers. As part of its development nie Kodak in 1999 inced RM9,000 plan" in Shanghai Win the initiative, Kodak planned to tap the Chinese photography market which had a growth rate of 10 year The same year Kodak started improving its existing manufacturing facilities in China as well as buiding new ones through which the company expected to produce over 100 million filmros per year David Swit Charman and President Greater Asia Region, Kodak sad. Our factories in China are essentially indistinguishable from the best of our plants anywhere. By 1999 Kocak had around 5500 Kodak Express total shops in China. Meanwhile China's possible entry into the World Trade Organisation (WTO) igraled Kodaks the property in China Kocak created to benefit from lower duties and cimination of its on certain Kodeks products (Anure 1). In 1909, Kodak's revenues from Chinaad increased by 38% while profts escalated by 58% In early 2000, Kodak (China Co Lid and Multi-Asa Manufacturing Company Limited entered into an agreement to encourage the Chinese photography market. With sup investment of HK$10 million. Mut Asia planned to commerce 20 Kodak Express outlets in major cities in Shanghai Hatin Shenzhen, Lianyurgargand Guanto These outlets planned to focus on processing digtal pictures in addition to the traditional fim products and to grocessing 6 Ch-Sing Chairman of Multi-Asia said, 'in tandem with China economic growthere has been significant increase infim wap. www. + Two . wwwwwww "We COM - TO for the www . TIRS 2