Kodak vs Fuji Essay

7179 Words Oct 12th, 2011 29 Pages
KODAK VS. FUJI: THE BATTLE FOR GLOBAL MARKET SHARE

by Thomas C. Finnerty

Thomas C. Finnerty is a doctoral candidate in the Doctoral of Professional Studies Program, Lubin School of Business, Pace University, New York. This case was written under the supervision of Warren J. Keegan, Professor of International Business and Marketing and Director of the Institute for Global Business Strategy, Lubin School of Business, Pace University, New York, as a basis for class discussion rather than to illustrate either effective or ineffective handling of a business situation. ©2000 Dr. Warren J. Keegan.
*The following case solely represents the opinion of the author and does not express the opinions of the Eastman Kodak Company of Fuji Photo
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The relationship between Kodak and Fuji had always been adversarial, as competitors naturally are; however, it took a very serious turn in May 1995 when Kodak filed a Section 301 petition under U.S. trade law. The petition claimed that Kodak’s 7-10 percent market share in Japan was not a result of consumer choice and marketing efforts but rather a result of four principle Japanese wholesalers, backed by the Japanese government, that are exclusive Fujifilm supporters. As a result, the World Trade Organization, which eventually presided over the court decision, announced on January 30, 1998, a “sweeping rejection of Kodak’s complaints”1 about the film market in Japan. At present, with the court battles behind them, Kodak and Fuji can now pool their efforts to grow the photographic and imaging business as they did with their shared effort, along with Canon, Minolta, and Nikon, in releasing the Advanced Photo System in
1

Edelman Public Relations Press Release, 30 January 1998.

i

The Changing Customer

1996. These types of efforts are necessary to stave off the real competition to photography, the computer savvy who demands digital imaging.

KODAK AND FUJI…. NOT A PRETTY PICTURE “How can Kodak possibly sit on its hands and allow

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