The Kodak - Fuji Rivalry|Business Strategy|Case Study|Case Studies

The Kodak - Fuji Rivalry

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Case Details:

Case Code : BSTR037
Case Length : 10 Pages
Period : 1998 - 2002
Organization : Eastman Kodak Company, Fuji Photo Film
Pub Date : 2002
Teaching Note : Available
Countries : USA
Industry : Photo films

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Dispute

In 1995, Fuji had 18.8% marketshare in the US whereas Kodak had a mere 7-9% marketshare in Japan. Defending its poor performance, Kodak alleged that the Japanese government had imposed trade barriers, which had prevented it from competing effectively in Japan.

The company claimed that this had cost Kodak $5.6 billion in lost revenues during the period 1985-95. In May 1995, the rivalry between Kodak and Fuji intensified when Kodak filed a petition under section 301 stating that its poor performance in the Japanese market was a direct result of unfair practices adopted by Fuji. Kodak alleged Fuji of price fixing in trade associations, bribing retailers and wholesalers so that they do not sell film produced by other competitors. However, some analysts felt that the reason for Kodak's failure in Japan was due to the significant difference between the distribution networks in Japanese and the US markets. In the US, film manufacturers sold directly to retailers and photofinishers whereas in Japan, distributors mediated between the two parties (the manufacturers and the retailers/wholesalers)...

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Exhibit I: Kodak's Consolidated Statements of Income

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