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Kodak Pest Analysis Essay

Political

US copyright law requires all photo shops to refrain from printing or releasing digital images taken by professional photographers without a copyright release (2005; 2005). The company operates in different countries around the world therefore it needs to comply with those countries regulations for example, taxation policy and employment laws. The company has to take into account the stability of the government in countries where it operates to try and minimize political risk such as corruption.

Economical

The Company’s long term debt seems to be going up over the years. This will then increase interest payable. Some of the countries where the companies operate are known to have high level of inflation and the firm need to put measure in place to try and combat it. With the recession and high unemployment, people will have less disposable income and would be inclined to buy cheaper camera. The company may be paying low interest on their borrowing at the moment but it should be prepared to pay higher rate of interest in future as the rate can only go up as it stands.

Price declines of digital camera made it highly affordable for more consumers, resulting to even greater demands.

Socio-cultural

more and more people are moving toward digital camera and films camera are now seen as old fashion. People can now stores their pictures into the computer or digital album and the traditional album is now seen as out of fashion. People are much more educated and are able to take and print the picture themselves or store them digitally. The firm’s retail network was a depreciating asset as consumers’ own home-based computer, email and print capabilities increased. There is no more the need to send pictures through the post as sending them digitally is quicker. Buyers have become more accustomed to buying technology-based products that contain several features such as digital cameras and photo-capable cell phones.

Technological

very high pace market, rapid development in camera products brought about by technology requires considerable investments for highly-skilled staff, marketing efforts and production equipment.

New digital cameras must have multiple features that meet customer needs. The firm need to spend more on research and development to be able to maintain its market share. Need to be quicker at bringing new product to the market as the speed of technological change is high. The company maintained one of the world’s biggest research effort in imaging. A world leader in image sensor technology, with 30 years experience in the design and manufacture of electronic image sensors. The company is a leader in the production, control, measurement, specification and visual perception of color, essential to predicting the performance of image-capture devices and imaging systems.


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