Fujifilm adopted a new business strategy, diversification. I am inquisitive about how their organizational model and structure changed with diversification and whether photography would be their core focus going forward or not. This strategy can be used by investors attempting to spread out their money and gain new areas of exposure. Flexibility and adaptability to industry-wide changing conditions are the key factors that allowed Fujifilm to survive. To accelerate the company’s ICT initiatives, Fujifilm established the ICT Strategy Management Office in October 2016. DIVERSIFICATION TECHNIQUES:The strategies of diversification can include products tend to create or stimulate new markets; new markets promote product innovation, internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Fujifilm. [3] In the 1960s, it began its endeavor to expand its business overseas, in an aim to catch up to the dominant industry leader, Kodak. • Binoculars: A full line of high performance and reliable binoculars, ranging from high-grade models for professional users to image-stabilizing binoculars, large and marine binoculars that are waterproof, lightweight and durable and compact binoculars. [2] L, B. Learn more about Sustainability Report. Diversification. Fujifilm Holdings Corporation (富士フイルム株式会社, Fujifuirumu Kabushiki-kaisha), trading as Fujifilm, or simply Fuji, is a Japanese multinational photography, medical equipment, biotechnology company headquartered in Tokyo, Japan.. This includes first determining the customer’s willingness to pay for the good or service that is being offered. FUJIFILM Holdings' sustainability efforts including strengthening corporate governance and environmental conservation and social contribution. Building a Life Science Hub. Traditional businesses can lose their competitive advantage because of technological innovations and new emerging digital business models. “Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one.” -The Economist [1]. This article elaborates the product, pricing, advertising & distribution strategies used by Fujifilm. Looking at the world, American companies in the 1960s and 1970s opened up a diversified path through large-scale mergers and acquisitions. The Fujifilm company has consistently maintained its pace with the changing times, has involved with a wide range of technologies and provided innovative products and services. [3] Corporation, F.  Fujifilm global. Figure 3. The move into film-based digital imaging, again vertical diversification, was from a strategic perspective a natural extension of … Fujifilm believes in achieving the solutions that can drive tomorrow's industries without putting the company at the risk of drowning. Pharmaceuticals and cosmetics are very promising and profitable markets. Strategy. Kodak vs Fujifilm sales. Fujifilm’s example reminds us the importance of having in-house expertise and constantly looking into new technologies. You must be logged in to post a comment. Diversification allows for more variety and options of products and services. Segmentation Variables such as age, social class, income group, region, behaviour attitudeare some of the attributes considered by the company for segmentation. Available at: https://www.bloomberg.com/news/articles/2013-09-03/kodak-exits-bankruptcy-as-printer-without-photographs (Accessed: November 2016). Fujifilm is an international company that has won several awards for its high-quality products. Since company caters to the emerging needs of diverse groups of customers segments and therefore it uses differentiating targetin… Diversification strategies allow a firm to expand its product lines and operate in several different economic markets. What an unexpected diversification move! The following is a guest blog contributed by Enric Escorsa of IALE Tecnologia. The products included were Photographic Film: Color Negative Film, Color Reversal Film, Black and White Film and Quick Snap. Why Did Kodak Fail? However, this approach proved unsuccessful as they realized without in-house expertise, they lacked the ability to effectively vet acquisition candidate, integrate companies it had purchased and negotiate profitable partnerships. The main aim of diversification is to allow the firm to enter lines of business that are different from existing line of business. Kodak and Fujifilm, manufacturers of photographic film, saw demand for their products sharply decline, causing Kodak to eventually file for Chapter 11 bankruptcy in 2012. As of July 2020, the Fujifilm Group has two operating companies, which encompass more than 300 subsidiaries in total, and three "shared services companies" under the umbrella. Unrelated diversification. Marketing Mix of Fujifilm analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Fujifilm marketing strategy. Given the prominent role of business groups in shaping firms’ diversification strategies in transition economy, we further examine whether business groups’ nonmarket capital—political, relational, and reputational capital—moderates the relationship between product diversification strategy … [2]  Fujifilm, on the other hand, was able to survive by diversify their product portfolio by leveraging their photographic film technology to start making cosmetics – yes, you heard right, cosmetics. [4]. I wonder how it was also able to evolve its operations to establish divisions that shared knowledge, technology, and resources, but faced such different customers. Fujifilm managed to ride out of the storm via a massive restructuration and diversification strategy. At Fujifilm we create innovative products and deliver effective solutions in a wide variety of fields to serve society, contribute to the quality of life, and enhance environmental sustainability. Diversification Strategies Firms using diversification strategies enter entirely new industries. Product diversification is a strategy employed by a company to increase profitability Profitability Ratios Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders' equity during a specific period of time. Just to re- which have helped the brand grow. Under such circumstances, to sustain their photo imaging business, Fujifilm decided to increase the price of photographic films. If done correctly, As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. For example, if the shoe producer enters the business of clothing manufacturing. It opens up new possibilities for the organization. Whereas Fujifilm had its own system, Kodak needed to partner with another firm—and thus share the income. PDF | On Nov 9, 2012, Kannan Paulraj and others published Diversification-strategies for managing a business | Find, read and cite all the research you need on ResearchGate Fujifilm’s strategy and execution were both very bold. ^ So it is in the American economy. I think Fujifilm is a great example of the risk as well as the opportunity in the digital revolution. In addition to achieving higher profitability, there are several reasons for a company to diversify. The promotional and advertising strategy in the Fujifilm marketing strategy is as follows: Fujifilm has used both offline and online method of creating product awareness among masses. The product or service is charged high when the demand is high and a low price is charged when the demand is low. Facing with difficulties in existent business, company decided to expand its business through diversification. Browse 4Ps Analysis of more brands and companies similar to Fujifilm Marketing Mix. Each strategy focuses on a specific method of diversification. More specifically, diversification during a time of transition. The content on MBA Skool has been created for educational & academic purpose only. Let us start the Fujifilm Marketing Mix & Strategy: The product strategy and mix in Fujifilm marketing strategy can be explained as follows: Fujifilm looks for what people need and then come up with a diverse range of innovative products and services in its marketing mix. Product Diversification Meaning. Diversification is a strategy that aims to mitigate risk and maximize returns by allocating investment funds across different vehicles, industries, companies, and other categories. Fujifilm, established in 1934 with the aim of producing photographic films in Japan, is regarded as one of the best camera brands worldwide. [2] Fujifilm, on the other hand, was able to survive by diversify their product portfolio by leveraging their photographic film technology to start making cosmetics – yes, you heard right, cosmetics. Top 10 blogs in 2020 for remote teaching and learning; Dec. 11, 2020 It’s amazing to see how FujiFilm has survived the digital onslaught by leveraging its internal research based assets to move into seemingly unrelated industries. The primary goal of diversification is to Below is the pricing strategy in Fujifilm marketing strategy: Fujifilm follows the demand oriented pricing concept in its marketing mix strategy. For example, they grew their health market superbly. The main reason was continuously decreasing demand for film products which resulted in high cost of making because the price of raw materials remains high and cost increase linked to lesser volumes becomes much serious. How to increase brand awareness through consistency; Dec. 11, 2020. The company website, itself has news feed section to make the customers aware about the company and its products. Life Sciences Strategy. Indeed, some of their compact cameras are among the most respected on the market. When the film market declined, the film company that derived 60% of its sales from film successfully diversified its business and even grow its revenue by 57% from 2000 to 2010. By working alongside active wealth managers, who are not limited by accepted benchmarks our clients are assured that they have the vanguard of proactively and diversified managed portfolios which are strategically diluted over a wide range of investment styles, risk profiles, asset classes and territories. Unknowingly, in their efforts to perfect film stock the researchers had been laying the groundwork for a skincare business. Conglomerate diversification. Examples of the concepts include strategy, strategic planning, innovative culture, transformational leadership, effective leadership, effective decision making, strategic positioning, and diversification. Strategy 3: Corporate Strategy, Diversification, Porter's Three Essential Tests and Synergies Published on November 27, 2016 November 27, 2016 • 66 Likes • 7 Comments They operate in a very efficient and structured manner with a well spread distribution network. In recent years, Fujifilm expanded its global presence to Cambridge, Massachusetts, the epicenter of healthcare innovation for the opportunity to forge collaborations with world- leading industry and academia. For that reason, product diversification is an often effective business strategy. [5] Foundation, N.C. (2011) Fujifilm finds new life in cosmetics. Instead, it leveraged its chemical expertise to pioneer new business fields. 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