波特五力模型分析柯达公司

Introduction

There was a great company named Kodak, which has gradually disappeared in our sight since the year 2012 it has filed for bankruptcy protection. This reminds us that there is not any brand or company can remain being succeeded forever. What is certain is that there must be some important factors hidden behind that were leading the enormous empire to failure. This report will discuss the factors that are affecting the rise or decline of a technology.

Porter’s five forces model

To fulfill this goal, it is necessary to introduce the Porter’s Five Forces Model, a simplified model used for analyzing the competitive situation in certain industry for developing strategy. It shows the main five sources of competition, which is the bargaining power of both the suppliers and the buyers, the threat of new entrants and substitutes, and rivalry among existing firms. Proposal of any feasible strategy should be based on the identification and analysis of the model. To briefly explain is that for one enterprise, if the higher the price of the supplier offers with, the lower the price of the buyer gets the products or services, the more the amounts of new members coming into the field, the more the replacing products there are, the more the extent of the competition among the same industry will be. It is considered to be more like a theoretical tool rather than an actual operational tool. This is because the formation of the model is based on three conditions: for a certain industry, the strategy maker needs to know all the information about it, which is the first impossibility in the reality; followed by the assumption that there is only competition but no cooperation between different companies in the same industry which is also impossible because different enterprises do have variety of cooperative relations instead of competitive relations only. What comes last is that it assumes that the size of one certain industry is limited. In fact, for all enterprises, there is not only to swollen rivals to grow but also can work with rivals to create a bigger profit together in the market.

The Five Forces Model Analysis of Kodak (including discussion)

Firstly, the stronger the bargaining power of suppliers of Kodak has, the more competitive situation would Kodak be facing in the market. The cost goes high directly leads to the increase of the prices of products. For the suppliers, they are not only supplying only one enterprise, not any single enterprise would become an important customer for them. For Kodak, such a big company can never afford