FUJI’S STRATEGY

"Fuji's greatest strength is that they always make sure that consumers are ready to buy their new products, and they actually get the products to the consumers."

- Toby Williams, an analyst at SBC (Swiss Bank Corporation)Warburg in Tokyo, Fortune Magazine, May 1998.

FORTUNE MAGAZINE

“What's ailing Kodak? Fuji while the U.S. Giant was sleeping, the Japanese film company cut prices, marketed aggressively, and now is stealing market share”.

- By EDWARD W. DESMOND REPORTER ASSOCIATE JEREMY KAHN October 27, 1997

CONT…

FOCUS ON BUILDING ITS MARKET SHARE BY ADOPTING STRATEGIES TO GET THE SHARE

OF WEAKER US COMPETITORS RATHER THAN THAT OF KODAK.

FUJI PROVIDED BUYERS OF JAPANESE CAMERA WITH FREE FILM ROLLS BUT KODAK

DIDN’T

IN 1977 FUJI REDUCED THE PRICE OF ITS PRINT PAPER. THE PRICE WAS LOWER THAN THAT

OF KODAK

FUJI’S PRODUCT WERE 100% COMPATIBLE WITH KODAK CAMERAS AND KODAK FILM

FUJI GAINED MORE FROM PRICE CUT IN US

Reason 1- Distributor in US ditched Fuji for Kodak Reason 2- Access to incredibly cheap borrowing--around 2.5%--thanks to

Japan's record-low interest rates. ( US- 7%, Kodak has more than $1 billion in short- and long-term debt)

SOURCE: FORTUNE MAGAZINE OCT 1997

CONT….

IN 1997 FUJI REDUCED ITS PRICE BY 50% ON ITS MULTIPLE FILM ROLLPACKS

FUJI ADPOTED THE STRATEGY OF PRODUCING LOCALLY AND COMPETING GLOBALLY

THE COMPANY ENCOURAGES ITS SALESFORCE TO SPEND MORE TIME WITH

DISTRIBUTERS THEREBY BUILDING GOOD PROFESSIONAL RELATIONSHIP WITH THEM.

FUJI HAD STRONG RELATIONSHIP WITH 4 MAIN DISTRIBUTORS – ASANUMA MISUZU,

KASHIMURA AND OHMIYA IN THE US ON THE OTHER HAND KODAK HAD ONLY ONE

DISTRIBUTER NAGASE IN JAPAN

OLYMPIC 1984

Olympic czar Peter Ueberroth(The architect of the 1984 Summer Olympic Games at Los Angeles) believed that Kodak was the natural choice to be the exclusive film sponsor, but Kodak wouldn't bite. Even after Ueberroth visited Rochester to make his pitch, Kodak refused to pay just $1 million, far below the $4 million floor for sponsorships that Ueberroth had established. So he approached Fuji, which in those days was still barely known in the U.S. market. Ohnishi said yes on the spot and eventually committed around $7 million.

SOURCE: FORTUNE MAGAZINE OCT 1997

In technology too, Fuji has shown that it can set the pace by consistently spending about 7% of sales on R&D.

In Late 90’s Fuji has built a reputation for price, quality, and sharp marketing.

Fuji A Hipper, More Technologically Oriented Marketing Kodak Sentimental In 1993, Fuji ran a highly successful, award-winning TV

campaign obliquely directed at Kodak. The killer line: "Pictures should be nostalgic; your film shouldn't."

CSR Enhanced governance of affiliates by FUJIFILM Holdings America Celia A. Spence

(VP, Environment, Health & Safety Dept. FUJIFILM Holdings America Corporation)

The Environment, Health & Safety (EHS) Department of FUJIFILM Holdings America Corporation supervises all environmental conservation and occupational health and safety activities at Fujifilm Group companies in the United States.

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PRINT DISPLAY PROJECT (PDP)- Kodak Print Maker is NOT a real photo processor. It does not use silver based paper and does not use chemicals for processing.