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What are the most significant innovations and market trends impacting (or threatening) the Kodak - Photography/Imaging/Cinematic/Sharing 'Moments' industry?
Hello! Thank you for your question about the most significant innovations and market trends impacting or threatening Kodak. While Kodak is beginning to make a comeback in the film industries, it needs to drastically re-imagine the concept of the "Kodak Moment" in the consumer market. Film photography is making a comeback due to its unique quality of product and artistic control. However, Kodak is still struggling to compete from an innovative standpoint. As someone who has a personal interest in photography, this was a fascinating question to research! Below, you will find my SWOT Analysis of Kodak.
METHODOLOGY
For my research, I focused on articles related to film industry trends published in the last two years. I researched articles directly related to Kodak's new products, recent trends in photography, and information on emerging competitor products. I did consult a pre-existing SWOT analysis on Kodak from Marketing 91, which I used as a basis for my analysis. However, the initial analysis was very general in nature and did not include the most recent changes to Kodak as a company. As such, I have included some of those insights in my own SWOT analysis, but have focused mostly on newly available information, such as market trends and new releases from the CEN 2017 conference in photography.
For each section, I have included summary bullet points at the top with a deeper analysis of those points below.
STRENGTHS
-Kodak continues to bolster support for film as a creative medium and crossing industry lines as a result of this support.
-Their broad spectrum of products in both the digital and analog film industries continue to be one of their strengths.
-Technology adaptation continues to be strong in the creation of new products.
Kodak's decision to "double down" its support of film as a creative medium has paid off immensely for the company. They have made a serious comeback in the movie industry, with 12 features shot on Kodak film in the 2016 Cannes Festival. Their strength will continue to build with big blockbusters such as Star Wars: The Force Awakens. They are continuing to cross industry lines, with their film being used in music videos and TV shows. Filmmakers are also ecstatic about the surprising re-release of Ektachrome slide film in late 2017, which most competitors in the industry abandoned a few years back. It's another way Kodak is doubling down on its "throwbacks" and playing to the artistic market.
One of the strengths listed in the original list was technology adaptation, which still exists for Kodak today. The Harvard Business Review cites that one of Kodak's strengths in past and present ventures is their ability to see disruptions in the market and take some kind of action. However, their products are only beginning to get back to a competitive level.
Kodak is marrying its love of reel film with modern niche markets. With the release of the Super 8, they marry the unique quality of 8mm film with modern conveniences. It pays homage to products of old, while enhancing the experience of film-making. This product is ideal for the creatives who prefer the sound of the film whirring to life as they record and wish for a more personal, artistic experience in filming. Plus, it stays true to the brand thought of "the sharing of moments," since each reel only records 2-3 minutes of film. They are also attempting to capitalize on the love of true film movies with their "Reel Film" app, which helps users locate 35mm showings near them. These niche market products may help breathe life back into the film industry.
Kodak also continues to release a broad range of products by entering the digital market with their first 360-view camera, the PixPro Orbit360. The difference in lens sizes offers its users flexibility in the orientation of the camera. It doesn't split the difference (180 degrees per lens) like its competitors. It also has a very robust companion app to both control the camera and share footage to Facebook or YouTube and is on par with its competitors.
Kodak also released Kodakit, a platform for commercial photographers and businesses to connect. It streamlines a complex process for both photographers to get work and businesses to acquire the imagery they need. Digital trends explains that this product will "revolutionize how photographers and businesses work together, creating the photography ecosystem of the future." By far, this is the most promising of the new Kodak ventures, as it fills a clear void in the industry.
The original SWOT analysis also cites the social responsibility of the company as one of its strengths. This continues to be an important factor in a company's reputation, but social factors were not overly prevalent in my research.
WEAKNESSES
-Products that fail to bring the nostalgia of times past into the current era.
-While sticking to its roots will help the company in some ways, its pitfalls are mostly in myopic views.
-They are playing catch up with their competitors, rather than leading the innovations.
Kodak is attempting to bring back their "Kodak Moment" with their social storytelling app. Unlike other social apps, it attempts to capitalize on the idea of slowing down and focusing on the moments that matter. However, the app is failing to create the "story in a picture" concept with a lack of photo editing capabilities for users and options that are still stuck in the physical printing of photos. TechCrunch feels this is a missed opportunity to capitalize on the concept on slowing down and creating a story in a single image. This aligns with the original analysis, which suggested that Kodak's entrance into the digital and virtual platforms was limited by their focus on print.
Another missed opportunity can be found in their Ektra Camera Phone. While it attempts to fill a gap in the smartphone market with an optically stabilized camera, it falls short of competitors like the Panasonic CM1. Unfortunately, it doesn't marry the camera-focused elements with the ease and usability people look for in a modern smartphone. The Harvard Business Review's article suggests this may be due to a limited focus, as it has been with past products.
Ultimately, many of the missed opportunities in Kodak's past and present can be contributed to a version of myopia. Its major weakness in past years has been its inherent focus on the printing of photos. According to the Harvard Business Review, they are quite good at seeing the disruptions in the market, but fall short in capitalizing on them. In these cases, sticking too closely to its roots and not embracing the potential of technology fully has crippled the company's ability to compete. They are playing catch up, rather than defining the future of the industry.
OPPORTUNITIES
-As in the original analysis, lifestyles are continuously changing, offering a variety of opportunities for growth.
-A focus on developing markets, niche and mainstream, will be key opportunities for product development.
-Kodak should push the bar in re-imagining the "Kodak Moment" for the modern era, including the rediscovery of artistic control and "slowing down" the experience
-Marrying the "old" film technology with current technology trends (such as Internet of Things or IoT and Virtual Reality or VR) may be the biggest opportunity for growth.
While the "Kodak Moment" remains a household phrase, Kodak has so far missed the mark on recreating it for the modern world. However, there is still an opportunity to reinvent the Kodak Moment experience with the development of its products, if a bigger focus is placed on lifestyle changes and developing markets in product development.
Current trends suggest that Film Photography is on the rise again, as amateur and professional photographers are "rediscovering the artistic control offered by manual processes and the creative satisfaction of a physical end product." PetaPixel praises the "simplicity to the pared-down experience [of analogue shooting] that can be of genuine creative benefit." This is prevalent in the fashion industry, where photographers are fighting to take back control of the creative process from their editors.
The younger demographic is enthralled with the "retro-vintage look film cameras sport and by the lengthy shooting and developing process," according to TIME Magazine. There is a clear opportunity in marketing the unique quality of film photography to both personal and commercial markets. In a digitally connected world, people are beginning to look for opportunities to "slow down a little bit." Film photography offers this experience with its lengthy shooting and developing processes. Photographers, especially every day photographers, are looking for "more creative and experimental ways within photography" to create a more personal experience with their work.
Companies can no longer rely on past nostalgia to bring relevant products to the table. While Kodak will certainly build some revenue through those niche market, the biggest opportunity for growth lies in innovation. Photography companies across the board are using IoT and VR technologies to break away from their competitors. So far, these innovations have been limited to digital photography and filmography. However, for those that argue for the immersive quality of reel film over digital, there is clear potential. Innovation is the root of opportunity in today's market.
THREATS
-Market competition continues to be a major threat.
-Industry rivalry continues to be a major threat, as the need to be innovative continues to be the center of product development.
-A Do-It-Yourself Lifestyle, such as with home development, continues to threaten the film development aspect of Kodak's business.
-Digital technologies continue to be a major threat, but with the film photography market back on the rise, there is some indication that they can exist beside each other, rather than in competition.
Market competition continues to be one of the biggest threats for Kodak. Even as Kodak looks to bring previous products into the current era and emphasize nostalgia, its competitors are doing the same. Lomography’s Diana camera is becoming increasingly popular. Its "final images have a unique, dreamlike quality that simply cannot be recreated with any amount of computer processing." Fujifilm also released a throwback product at CEN 2017, in its FinePix XP120. Rises in material and production costs also threaten the profitability of the more nostalgic products unless there is significant innovative re-imagination.
Even in its attempt to break into the 360 degree camera market, Kodak has many contenders to deal with. Even though its PixPro is competitive with the Nikon Keymission 360, emerging startup technology could quickly give it a run for its money. The startups in the category are quickly closing the gap by offering affordable versions of this technology, with unique features to give them a solid leg in the race.
An ever present threat to the film industry is that serious amateurs and professional photographers are choosing home development as opposed to traditional routes. Services like LocalDarkRoom.com help photographers find a pre-existing dark room to develop their film, register their own to share, and even take photography and development classes near them.
Digital technology continues to be the biggest threat to film photography and cinematography. However, there are clear indications that these markets can exist simultaneously. The key seems to lie in existing in both markets, which had previously been a struggle for Kodak. It is no longer good enough to just recognize the disruptions in the market and embrace them. Instead, companies need to make meaningful connections to the lifestyle changes in consumers.
CONCLUSION
To wrap up, there is great potential for the comeback of film in movie, TV, and music video production, as well as in artistic niche markets. Kodak has many opportunities to innovate with modern digital technologies, as long as they keep in mind the changing lifestyles of the average consumer as well as technological advancement. However, that success may be hindered if too myopic a focus is taken.
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