Evaluate Kodak’s Strategy in Traditional Photography. Why, Historically, Has the Soft Drink Industry Been so Profitable?

In: Business and Management

Submitted By wumian1231
Words 1000
Pages 4
Your Strategy Needs a Strategy
The internet software industry would be a nightmare for an oil industry strategist. Innovations and new companies pop up frequently, seemingly out of nowhere, and the pace at which companies can build—or lose—volume and market share is head spinning. Still, the survey found, in practice many rely instead on approaches that are better suited to predictable, stable environments, even when their own environments are known to be highly volatile or mutable. Here we present a simple framework that divides strategy planning into four styles according to how predictable your environment is and how much power you have to change it. Using this framework, corporate leaders can match their strategic style to the particular conditions of their industry, business function, or geographic market. How you set your strategy constrains the kind of strategy you develop. With a clear understanding of the strategic styles available and the conditions under which each is appropriate, more companies can do what we have found that the most successful are already doing—deploying their unique capabilities and resources to better capture the opportunities available to them
Finding the Right Strategic Style
Your choice of strategic style should begin there as well. Although many industry factors will play into the strategy you actually formulate, you can narrow down your options by considering just two critical factors: predictability (How far into the future and how accurately can you confidently forecast demand, corporate performance, competitive dynamics, and market expectations?) and malleability (To what extent can you or your competitors influence those factors?).
Classical. When you operate in an industry whose environment is predictable but hard for your company to change, a classical strategic style has the best chance of success. Classical strategic…...

Similar Documents

Historically the State Has Been the Main Engine of Development

...to development has been analyzed under different theories. First of all the state refers to a modern and western way to operate under a unify authority in each field in order to achieve the interest of the whole society. The state’s principal charge was to accelerate industrialization, modernizing agriculture, providing infrastructure that are necessary for the urbanization and improve living condition (i.e. health, education, welfare). Growth-oriented states pursued their commitment by developing trade and industry with well-designed, consistent, and thoroughly implemented policies. Specific policy measures varied but were generally aimed at easing supply-and-demand constraints faced by private entrepreneurs. Some of these interventions were direct, and others, indirect. On the supply side, for example, the capitalist states helped facilitate the availability of capital, labor, technology, and even entrepreneurship. Thus supply of capital was boosted at times by superior tax collection and public investment, at other times by using publicly controlled banks to direct credit to preferred private firms and sectors, and at yet other times by allowing inflation to shift resources from both agriculture and urban labor to private industrialists. In this essay there will be two ideal-typical historical patterns of how state authority is organized and used in the developing world: neo-patrimonial states and developmental state. Firstly the term neo-patrimonial has been used for......

Words: 1287 - Pages: 6

Historically, Why Has the Soft Drink Industry Been so

...culture by focusing on EITHER 1. an issue (something which the organization has responded to) OR 2. a particular organizational practice (something the organization does) OR 3. an event (some particular incident or series of incidents inside the organization) OR 4. a sub – unit (an organizational department department/division) . You will be able to choose from one of seven organizations: • Apple http://www.apple.com/ • South West Airlines http://www.southwest.com/ • The Hongkong and Shanghai Banking Corporation http://www.hsbc.com/1/2/home • Ben and Jerry’s http://www.benjerry.com/ • Médecins Sans Frontières http://www.msf.org/ • The Morgan Motor Company http://www.morgan-motor.co.uk/ • Ikea http://www.ikea.com/ (The web sites are provided as somewhere to consult in the first instance but should not exhaust your enquiries) This module is studied in many overseas locations. The lists of organizations available to choose are amended slightly to take into account greater suitability for the part of the world they study in. Whilst not giving you too much choice! We think it only fair to allow all students to choose from the entire list, so have included these as well and you can choose one organisation from this list as well if you wish, however normally UK based students choose from the list of seven organizations above and so please speak to your seminar tutor for guidance before choosing from the list......

Words: 2473 - Pages: 10

Soft Drinks Indusrty

...The soft drinks industry is a highly competitive market and has a wide variety of products which are sold within this market. These include bottled water, carbonates, dilutables, still and juice drinks, fruit juice and smoothies and sports/energy drinks. From the 2012 UK Soft Drink Report it shows that the soft drinks industry has grown massively in value by 5.1% in 2011 which equates to £14.5 billion. Along with this consumption of soft drinks has risen by 0.7% to reach 14.6 billion litres. This shows the current size and value of the market to be on a constant rise, and will continue to rise with the increasing population of the UK and marketing of Soft Drinks companies. The market sector as a whole can be seen as increasing. From looking at a Mintel report for each individual sector in the market I found that they all follow a similar trend. Drinks such as bottled water, carbonates, dilutables, smoothies along with still and juice drinks all follow the same trend as rising from around 2006 where the records begin, followed by a slight dip during the recession during 2008 and then a constant increase again. This is expected as the recession affected most market sectors around the world and because soft drinks are not a necessity in the home as the UK has clean running water the market for soft drinks sank a little, but since then has been on the increase. Smoothies showed a drastic change during the recession unlike any other of the segments, managed to plummet from £225......

Words: 2496 - Pages: 10

Soft Drinks

...Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America's favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U.S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times. Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U.S. was patented in 1809. It was called "soda water" and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments. Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with "soda fountains" featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market......

Words: 5213 - Pages: 21

Soft Drinks

...Introduction of soft drink industry: Soft drinks introduced in seventeenth century. These were known as non carbonated soft drinks and prepared by mixing honey and lemon with water and this soft drink was sold in Paris in small plastic cups. Later on it was produced in large scale John Mathew invented an equipment which is capable of producing carbonated water in large scale. The first flavoured drink was prepared by Doctor Philip Sing Physic in 1807. Later on it was liked as health drink and liked by customers as well and ordered to be carried at home. After this demanded by peoples then it leads to manufacturing industries of bottle plants. This was an interesting phenomenon that soft drinks were coming on bottles and this increased the sales of soft drinks also. It was for the first time that the bottle was containing water with bubbles. For the first time Michael Ovens had started the glass blowing machine which were used in automatic production of bottles. With use of these machines 69000 bottles were produced in place of 1500 bottles which were hand-made. After all these efforts the Soft drink industry started centuries ago. In the present time soft drinks is a very large industry and it is known as cold drinks now. Now in India there are only two major competitors Pepsi and Coke. This industry comes in beverages industry in India and it is growing industry because everyone likes to have cold drinks but it is seasonal the sales of cold drinks are in boom mainly......

Words: 2971 - Pages: 12

Porter's Five Forces of Soft Drinks Industry

...is very common that the existing company in a industry will set the barrier to the new entrants. Because these new entrants might become the strong potential competitors in the future and take away large profit from the existing company. For these new entrants, they will carry out pretty attractive competition and use better financial strength to seize current and potential market. These moves will lower the benefits of existing business and the return of investment. To prevent this situation happen, Coca-Cola will set different barriers to discourage the potential entrants. I will discuss other enter barriers. Product differentiation One of the most important factors to determine whether a business can be successful is whether they have the compared advantages. It is very important to use the differentiation strategy to make your products known by the customers. Products that easy to remember and recognize by the customers are different from others. This difference can be the service of the company, the high quality, the name of brand. All of these characteristics will set up the customers loyalty in the market. Under the advantage of differentiation strategy, even though the new entrants maybe try their best to attract the customers with lower prices or other things, they may still suffer a loss in profit because the loyalty of the customers. Capital requirement Whenever and wherever people decide to entry a industry, he has to have enough capital recourses to support......

Words: 2953 - Pages: 12

Soft Drink Industry

...of any venture. So hereby, it is our pleasure to record thanks and gratitude to the people involved. Firstly, we thank DR. R.K OJHA, for his continuous support in the project. DR. R.K OJHA was always there to listen and to give advice. He is responsible for involving us in the project on soft drink Industry in the first place. He showed us different ways to approach a research problem and the need to be persistent to accomplish any goal. Without his encouragement and constant guidance we could not able to finish the project. He was always there to meet and talk about any query. Last, but not least, we would like to thank all class mates and hostel mates who support us throughout the project. Introduction to Soft Drink Industry The main production of soft drink was stored in 1830’s & since then from those experimental beginning there was an evolution until in 1781, when the worlds first cola flavored beverage was introduced. These drinks were called soft drinks, only to separate them from hard alcoholic drinks. The drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated companies that manufacture carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft drink is more favorite refreshment drink than tea, coffee, juice etc. Raw Materials used in Soft Drinks There are......

Words: 4470 - Pages: 18

Soft Drink Case Study

...Factors, etc. 4 Economic Indicators Relevant for this Industry 4 Threat of New Entrants 5 Economies of Scale 5 Capital Requirements 6 Proprietary Product Differences 7 Absolute Cost Advantage 8 Learning Curve 8 Access to Inputs 8 Proprietary Low Cost Production 8 Brand Identity 9 Access to Distribution 9 Expected Retaliation 9 Conclusion 10 Suppliers 10 Supplier concentration 10 Presence of Substitute Inputs 11 Differentiation of Inputs 12 Importance of Volume to Supplier 13 Impact of Input on Cost or Differentiation 13 Threat of Backward or Forward Integration 13 Access to Capital 14 Access to Labor 14 Summary of Suppliers 14 Buyers 15 Buyer Concentration versus Industry Concentration 15 Buyer Volume 15 Buyer Switching Cost 15 Buyer Information 16 Threat of Backward Integration 16 Pull Through 16 Brand Identity of Buyers 17 Price Sensitivity 17 Impact on Quality and Performance 17 Substitute Products 18 Relative price/performance relationship of Substitutes 18 Buyer Propensity to Substitute 18 Rivalry 18 Industry Growth Rate 20 Fixed Costs 21 Product Differentiation 21 Brand Identity 21 Informational Complexity 22 Corporate Stakes 22 Conclusion 23 Critical Success Factors 23 Prognosis 24 Bibliography 26 Appendix 27 Key Industry Ratios 27 Introduction Description The soft drink industry is concentrated with the three major players,......

Words: 4699 - Pages: 19

Soft Drinks

...preferences. Thus to stand in the competition, the upsurge of celebrities endorsing brands has been steadily increasing over the past few decades. Marketers acknowledge the power of celebrity in influencing consumer’s purchase decision. Millions of dollars are spent as the celebrity endorsement can bestow unique features upon a product that it may have lacked otherwise. Not lacking behind, Soft Drink companies are also advertising their product through various media and spending millions of dollars on celebrities to endorse their product. Around 35% of the total cost is spent by the Soft Drink Company especially in Advertising. Various Movie Actors and Sports Players are hired to endorse the Soft drink Brand. Therefore, I took this opportunity to study the Impact of Advertisement on Brand Preferences towards Soft Drinks. This research is a Descriptive Research where Primary data was collected from 80 respondents by using a questionnaire through Convenience Sampling and Secondary data was collected from Internet and Research papers. The Data collected was analyzed via using SPSS 16 Software. The major findings of the report are that the Advertisement has a severe impact on the brand preference towards Soft Drinks. Television is the first choice of people for searching the information, and then followed by Magazines and Internet as compared to different kinds of media. Celebrity endorsement also has a significant impact on the consumers and affects their perception......

Words: 1445 - Pages: 6

Industry Analysis: Soft Drinks

...Industry Analysis: Soft Drinks Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, & Kelly Ziegler Strategic Management in a Global Context February 22, 2006 Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are......

Words: 5353 - Pages: 22

Kodak and the Digital Photography

... KODAK and the Digital Revolution 1. Evaluate Kodak's strategy in traditional photography. Why has the company been so successful throughout the history of the industry? Kodak had several core competencies to its advantage. Of primary importance were its “user-friendly” qualities, cost, extensive advertising that helped built its name; perceived quality of its products and its customer focus that lead to strengthening an important core competency i.e. customer satisfaction. Kodak’s leadership also came from marketing and its relationships with retailers (for shelf space and photo-finishing) and also its investments in R & D. During its heyday, its technological capabilities and its rapid design to market cycle times were success factors. Kodak used a razor-blade strategy wherein film was regarded as the consumable so it sold cameras for low cost and profited from increased sales of films. 2. Compare traditional photography to digital imaging. What are the main structural differences in the industry? (Use the 5-forces model) | Traditional | Digital | Rivalry among competing firms in industry | Initially none until 1976 when Fuji came in | High- many companies producing different brands at all price category | Bargaining power of suppliers | Low – since Kodak was their main consumer | ...

Words: 1252 - Pages: 6

Marketing Research Soft Drinks Industry

...HABITS IN SOFT DRINKS INDUSTRY Research Proposal : Scope of introduction of a lemon-lime soft drink a local soft drink firm. The product would to be positioned as a “change of pace” soft drink to be consumed by all soft drink users, including heavy cola drinkers. Objective definition: The objectives of this research are: * We have to find out the perception and the expectations of the existing consumers from the soft-drink industry. * To analyze whatever the factors that will affect the introduction of this new soft drink in the market including the target audience , competitors etc. * To implement the research methodology and research design in order to gather and understand the data received. Research objective: The objective of the research is to understand the concept of the introducing the lemon-lime soft drink in the market by perceiving its idea of methodology, sampling plan, time and cost. Background of the soft drink industry: The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually.  In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1% share, and the rest is divided among local players. There are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with orange and mango flavours. Soft and aerated drinks were......

Words: 708 - Pages: 3

Soft Drink Industry

...shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favorable). Most of the companies in the soft drink industry are profitable. The Coca Cola Company's main competitors are Dr.Pepper, Nestle and PepsiCo. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and PepsiCo can produce at large volumes enjoy lower costs per unit because they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porter's article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competitors. How does a newcomer circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry Rivalry Among Existing Players * The industry is not growing rapidly. The growth rate for the industry is not rapid; it is in fact relatively small. This makes it very difficult for new entrants to compete with the already thriving firms in the industry.  * The industry......

Words: 914 - Pages: 4

Industry Analysis Soft Drink

...Industry Analysis: Soft Drinks Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, & Kelly Ziegler Strategic Management in a Global Context February 22, 2006 Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are......

Words: 5374 - Pages: 22

Why Is the Soft Drink Industry so Profitable?

...The soft drink industry is very profitable and it can be analyzed using Five Forces analysis. Each force contributes in different extent to the industry profitability. The supplier power is low. The input required by concentrate producers (CP) consisted of color, citric acid, natural flavors and caffeine; while bottlers mainly purchased packaging (including cans) and sweeteners. These inputs are all relatively standardized materials that can be easily found and bought from large amount of suppliers. CP like Coke and Pepsi are the metal can industry’s largest customers. The switching costs are low, if citric acid’s price is high and industry now prefers phosphoric; and the firms could switch easily to corn syrup when sugars (sweetener) are expensive. Hence suppliers have weak power and industry costs are low. Different retail channels have varied buyer powers. The major buyers are supermarkets, fountain outlets, vending machines. Generally, none of them have apparently high bargaining power on price, since consumers think soft drink are important (exhibit 1) and there are not many perfect alternatives. Supermarkets: there are so many supermarkets competing each others, so their power is not high. But they do have power on self-space controlling which the soft drink firms will fight for. However, another buyer category, mass merchandisers like Wal-Mart, have relatively more higher profits and power since their purchasing volume are so high that the industry will value them...

Words: 540 - Pages: 3

Comments 0 | Kokaku Kidotai Nyumon Arise | Utilitarianism