Is Kodak doing the right thing with the decision to have line proliferation: Gold Plus, Royal Gold and Funtime? Support your statement.
I do support the opinion that Eastman Kodak Company made the right decision to enter the economy class market with it new product Funtime Film.
Before the 1980`s there was no real competition in the world-market, Kodak was the leader in the selling of photo-films and cameras, because it supplied good quality for a fair price and easy to use product, but suddenly in the 80`s Fuji, Polaroid and Konica became competitors. Because of Kodak's long lasting success Kodak was a slow-moving company and did not create much innovation.
Kodak's US film market share declined from 76% in 1988 to 70% in 1993.
In the past year, Fuji and Polaroid sales grew at over 15% compared to Kodak's 3%, whereas private label sales grew about 10%.
In order to ensure the companies' further development company has to increase existing market share and secure profitability, therefore the decision to enter economy class market could secure Kodak overall market share growth.
Overall market situation has been changed and during last years the economy class market segment has become the fastest growing market segment on contrary to declining Super premium and premium quality market segments. Actually such market segment was developed by Kodak's competitors due to the fact, that competitors were entering the market with the low price products at 17 % below Kodak Premium tier.
As a result off such activities Kodak competitors has increased their market share, and become major players in the economy class market segment. Therefore the new comers in the market have development their own rules of the game and are leading competition.
Historically Kodak's one of the strongest selling points was its high product quality...