• Biomaterials: Fujifilm offers unique and new biomaterial for a broad range of medical and pharmaceutical applications. In addition to achieving higher profitability, there are several reasons for a company to diversify. Available at: https://www.bloomberg.com/news/articles/2013-09-03/kodak-exits-bankruptcy-as-printer-without-photographs (Accessed: November 2016). The content on MBA Skool has been created for educational & academic purpose only. Fujifilm was aware of the shifting market trend in photography from film to digital and similarly to Kodak, it opted to retain its existing business model, with the additional investments going into new technology and diversification into new businesses. [21] The marketing strategy will focus on one of the main leading brands offered by Photocentre which is Fujifilm. 1854 words (7 pages) Essay. • Optical Devices: Fujifilm’s one of the world leaders in optical technology and production scale in lens grinding, aspherical plastic lens fabrication, aspherical glass lens fabrication. Diversification is an investment strategy based on the premise that a portfolio with different asset types will perform better than one with few. This related diversification strategy works because all the companies share the brand, marketing, public relations, and corporate knowledge. Unrelated diversification. A single-business diversification strategy is a corporate-level strategy wherein the firm generates 95 percentage or more of its sales revenue from its core business area. This article elaborates the product, pricing, advertising & distribution strategies used by Fujifilm. Companies that sell products to the public may also need diversification, especially if they can’t sustain their businesses with just one product or approach. Fujifilm managed to ride out of the storm via a massive restructuration and diversification strategy. [3] Corporation, F. Fujifilm global. As the name suggests demand oriented pricing customer demand is used to set up the price in the market. A diversification strategy achieves growth by developing new products for completely new markets. Segmentation helps in understanding the underlying population characteristics and groups with similar taste & preferences. Diversification is an investment strategy that means owning a mix of investments within and across asset classes. Fujifilm is an international company that has won several awards for its high-quality products. This includes first determining the customer’s willingness to pay for the good or service that is being offered. Unknowingly, in their efforts to perfect film stock the researchers had been laying the groundwork for a skincare business. If done correctly, Product Diversification Meaning. This article has been researched & authored by the Content & Research Team. [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. Available at: https://monocle.com/magazine/issues/60/renewal-process/ (Accessed: November 2016). Moreover, when Fujifilm applied their kiosk technology to other businesses in its digital-imaging division, Kodak could not since it didn’t own the technology. 3. For that reason, product diversification is an often effective business strategy. In the 1980s, it became apparent to both Kodak and Fujifilm that the age of digital photography was right around the corner, and from a global peak in 2000, demand for camera film dropped 90% in 10 years as the digital revolution transformed the industry. 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. The Diversification Strategy At Disney Marketing Essay. Diversification strategies allow a firm to expand its product lines and operate in several different economic markets. 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. [4], Another area it pursued was cosmetics (which they call “Life Science”), which was set up as a division in 2006. Social media platforms like Facebook, Youtube and Twitter are used as well to make customers aware about their products. By adopting this strategy, the organization not only diversifies its products offerings in the target markets but also expands its business horizons. In the following years they expanded to China, Southeast Asia, and Europe, while becoming one of Japan’s top-selling anti-aging skincare brands. (Below shows nanoparticles of Astaxanthin, a red ingredient filled with beauty power, that Fujifilm formulated which became the basis of their skincare products. [4]. Strategies for Diversification By H. Igor Ansoff The Red Queen said, "Now, here, it takes all the running you can do to keep in the same place. Segmentation Variables such as age, social class, income group, region, behaviour attitudeare some of the attributes considered by the company for segmentation. 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. Fujifilm chose the account-based marketing tool Marketo and set to work trialing it on a B2C area of the business aimed at persuading existing customers to continue using the company’s online Photobook services via marketing emails. Facing with difficulties in existent business, company decided to expand its business through diversification. Diversification is an investment strategy that means owning a mix of investments within and across asset classes. To obtain the optimal strategy of diversification, the risk must be defined and the associated investment opportunities modeled (Zvi et al., 2009). You must be logged in to post a comment. “Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one.” -The Economist [1]. How to increase brand awareness through consistency; Dec. 11, 2020. We have a lean and robust management structure that is integrated with Fujifilm Holdings Corporation. [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. The most common strategies include concentric, horizontal and conglomerate diversification. Great post. The digital revolution in photography has dramatically changed the way we take and share photos. At this juncture, Fujifilm decided to take conclusive action undertaking structural reform of its imaging solutions segment, adopting new growth strategies and a well-diversified business portfolio. 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 … For example, they grew their health market superbly. • Medical Systems: Fujifilm is a pioneer in clinically proven diagnostic imaging and information systems for healthcare facilities. The companies are not associated with MBA Skool in any way. Xerox has agreed a deal that will see Japan’s Fujifilm Holdings take control of its printer and photocopier business as the ailing US group seeks to fend off an activist shareholder revolt. This strategy can be used by investors attempting to spread out their money and gain new areas of exposure. From the point of view of leveraging its existing technologies and expertise, I see the logical paths Fujifilm took into medical devices and even cosmetics. Kodak was the leading player in the industry before it was upset from the position by Fujifilm. Although the two companies shared similar assumptions and internal politics, the differentiating factor was in execution. Available at: http://astalift.com.bd/astalift/ (Accessed: November 2016). Diversification is a corporate strategy to enter into a new products or product lines, new services or new markets, involving substantially different skills, technology and knowledge. Strategy. Available at: http://www.economist.com/blogs/schumpeter/2012/01/how-fujifilm-survived (Accessed: November 2016). And, unlike competitor Fujifilm, Kodak failed to see the implications and adapt to the new reality. Flexibility and adaptability to industry-wide changing conditions are the key factors that allowed Fujifilm to survive. The central themes of the GFX & X Series are simplicity and elegance; the camera is a precision instrument, but one that’s combined with a functional beauty. Below is the pricing strategy in Fujifilm marketing strategy: Fujifilm follows the demand oriented pricing concept in its marketing mix strategy. 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. It’s more about not … [1] K.N.C (2012) Sharper focus. [2] L, B. However, these traditional businesses also hold a significant knowledge base and expertise that can be leveraged and utilized in other industries. In 2006 Fuji Photo Film Co., Ltd. entered into the cosmetics sector by launching a series of new antiaging products. What Fujifilm did was go one step further than simply shift to digital photography from analog. Professionals from diverse fields use Fujifilm products to win satisfied customers and strengthen competitiveness. Learn more about Sustainability Report. Photography forums to discuss digital photography, film photography, photographers, techniques and cameras and equipment, along with advice on buying and using cameras. which have helped the brand grow. Marketing Mix of Fujifilm analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Fujifilm marketing strategy. FUJIFILM Holdings' sustainability efforts including strengthening corporate governance and environmental conservation and social contribution. • Recording Media: Fujifilm benchmarked in the field of computer data storage, professional video production and TV broadcasting which are backed by reliability and security. Whereas Fujifilm had its own system, Kodak needed to partner with another firm—and thus share the income. To raise awareness of the diversification of Fujifilm's business portfolio to a wide audience and our determination to NEVER STOP taking on challenges to contribute to the resolution of societal issues, we launched our NEVER STOP global branding campaign in October 2018. Various television commercials have also been used to promote the products like Insta Photo. Since company caters to the emerging needs of diverse groups of customers segments and therefore it uses differentiating targetin… Learn more about Create Environments That Lead to Motivated Workplace (Work Style Priority Issue 1). Also, a type of horizontal diversification, a conglomerate diversification strategy, means to introduce brand new products or services that have no relation to your business’s current product offering, therefore entering a completely new market and appealing to customers that may have had zero interest in your business previously. While vertical integration involves a firm moving into a new part of a value chain that it is already in, diversification requires moving into new value chains. [5] Foundation, N.C. (2011) Fujifilm finds new life in cosmetics. Why Did Kodak Fail? Instead, it leveraged its chemical expertise to pioneer new business fields. Photography transitioned from film to digital, and with Kodak’s entire revenue stream tied up in film development, they flopped. Promotion is an integral part of any organisation and Fujifilm as an international brand is not an exception. Available at: http://www.nippon.com/en/features/c00511/ (Accessed: November 2016). In the case of FujiFilm, I believe digitization has meant an overhaul of its core customer promise and operating purpose. Diversification is a strategic choice for enterprise expansion. … The following is a guest blog contributed by Enric Escorsa of IALE Tecnologia. Such a diversification strategy is essential—especially in a world that’s increasingly undergoing globalization. They moved into digital X-ray and endoscopes; they now have a 70% world market share of tac film, an essential component of all LCD screens. A Path recommended: spin-off cosmetics division The diversification strategy of Fuji, based on capitalizing on their core competencies, has been successful. Fujifilm’s strategy and execution were both very bold. The general strategies include concentric, horizontal and conglomerate diversification. 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. It’s not just a good thought experiment. Quizzes test your expertise in business and Skill tests evaluate your management traits. I did not realized Fujifilm was so diversified. FujiFilm Built on It’s Diversification FujiFilm’s diverse base of business gave it other areas on which to build. Hence this concludes the Fujifilm marketing mix. Diversification -- MotivesThe risks of single business strategies aremore severe for management than forshareholders of publicly traded firms.Diversification may be motivated bymanagement’s desire to reduce risk.Diversification only makes sense … Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. The critical element in Fujifilm’s success is diversification. In this case there is no direct connection with the company´s existing business - this diversification is classified as unrelated. Diversification is a way to reduce risk by investing in a variety of assets or business ventures (Zhou, 2008). Diversification is thus a common and fundamental concept in both daily life and business. 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. I agree that for a business facing a dramatic shift in technology, it must evolve to avoid extinction. Fujifilm adopted a new business strategy, diversification. Today, we can take photos with our smartphones and share them with anyone in the world in a matter of seconds. Diversification strategy 1. To maintain the quality of their products, the company has invested a good amount in their manufacturing plants, advance research and developments centres and suppliers to reach the potential customers through different outlets like electronic shops, film studio, showrooms and other retail markets. In contrast to Fujifilm, who realized the need to develop in-house expertise in the new businesses, Kodak believed its core strength lay in its strong brand and marketing, and could simply partner or buy itself into new industries, such as chemicals and drugs. This is great work, Hide. It offers a wide range of consumer products such as: Digital cameras, 3D image products, Binoculars and other supplies. Fujifilm’s strategy was based on photo-films, but that has changed. Diversification is a strategy that aims to mitigate risk and maximize returns by allocating investment funds across different vehicles, industries, companies, and other categories. 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. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. The diversification of cropping systems encompasses different strategies that may help maintain or enhance the sustainability of agriculture. 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. ^ So it is in the American economy. Fujifilm products are also available on e-commerce platforms. At Fujifilm we seek to maximize synergies with other members of the Fujifilm group and utilize our people and other resources efficiently to achieve healthy growth. 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. There is nothing in common between the two companies that have not merged nor do the two have any strategy in common. Keeping the customers in mind, Fujifilm have divided their products into two categories: • Fujifilm Digital Cameras: Award winning range of cameras suited to Pros and enthusiasts. 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