The mission statement of Kodak is to “provide our customers and consumers with solutions to capture, store, process, output, and communicate their images to people and machines anywhere, anytime.” (Kodak, 2008b) Therefore, Kodak continuously innovates new technology on photography in order to satisfy the needs and wants of its target consumers.
Although it is possible for new entrants to penetrate the market, the threat of potential new entrants is considered as a medium because of the high costs of capital needed in the development and manufacturing of digital cameras, accessories, pocket video cameras, media players, digital picture frames, printers, and software.
Because of globalization, there is an increase in the availability of substitutes to the products offered by Kodak coming from different electronic and non-electronic manufacturers around the world including Hewlett-Packard, Dell, Epson, IBM, Xerox Corp., Compact, Canon, Sony, Fuji, Nikon, and Lyca among others. (C/Net Reviews, 2008. Digital Photography Review, 2008. Symonds, 2006) For this reason, the threat of substitute to Kodak product lines is medium-high.
Since there are quite a number of available similar products in the market, the bargaining power of Kodak’s target consumers is high. It means that Kodak consumers could easy shift to other brands who offer similar or higher quality digital cameras, accessories, pocket video cameras, media players, digital picture frames, printers, and software at a cheaper price.