The difference with traditional marketing and social media marketing reflect controlling the direct message versus building a rapport with the intended consumers to gain trust and build relationships. Businesses go wrong when they don't take the appropriate approach regarding the technique they have chosen to administer. Random approaches and various strategies can contaminate the process and result in poor planning. This is why it is imperative to study and apply the appropriate techniques needed to build social media strategies (Barker, Barker, Bormann & Neher, 2013).
Kodak is a prime example of how a business relied on directing their message to the public while being blindsided by new technology entering a market that they created and dominated but failed to see digital photography as a disruptive technology even as researchers extended the boundaries of the industry for decades. Research produced both "bad" and "good" news. The "bad" news was that digital photography had the potential capability to replace Kodak's established film based business. The "good" news was that it would take some time for that to occur and that Kodak had roughly ten years to prepare for the transition. The problem is that, during its 10-year window of opportunity, Kodak did little to prepare for the later disruption. In fact, Kodak made exactly the mistake that George Eastman, its founder, avoided twice before, when he gave up a profitable dry-plate business to move to film and when he invested in color film even though it was demonstrably inferior to black and white film (which Kodak dominated) (Mui, 2012).
Using the same company from the first part of the discussion, suggest the next step for this company in order to achieve the goal of its social media campaign. Provide a rationale for your suggestion.
There is a good possibility that the company may cease to exist within the next few years. The stock is no longer part of the S&P 500 or DJIA indices, the price of its stock has fallen over 90 percent since 2002, and the company has lost more than 65 percent of its value. The company's market capitalization is less than $500 million. Kodak's future is bleak but, there may be a lesson learned:
1. Never assume competitive advantages are insurmountable. Just because the company is a known market leader should not take focus away from remaining competitive. No product, company or technology ever built, or that ever will be built; can claim the mantle of invincibility. Something better will always appear. It's only a matter of time.
2. Continually to assess threats of new technologies. Because Kodak was the industry leader for so many years, they took for granted newcomers and changing technologies while other companies such as Fuji were making strides in the new market industry.
3. Remain Positive! Despite Kodak's precarious position, there is still hope for a turnaround. Their core film business is dead. But the company's innovative research and development has generated thousands of patents on imaging technology. The technology behind some of these patents is in widespread use in digital imaging devices such as mobile phones that take pictures. Rather than continue to focus on building and selling outdated technology, the company can focus on monetizing its intellectual property through licensing. The company also has the ability to generate profitable sales through other divisions that sell related items (Periu, 2011).
Barker, M.S., Barker, D.I., Bormann, N.F. & Neher, K.E. (2013). Social media marketing: A strategic approach (1st ed.). Mason, OH: South-Western Cengage Learning
Mui, C. (2012). How Kodak Failed. Forbes. Retrieved from https://www.forbes.com/sites/chunkamui/2012/01/18/how-kodak-failed/#1c3dc0856f27
Periu, M. (2011). How Not Keeping Up With Techology Trends Led to Kodak's Demise. Open Forum. Retrieved from https://www.americanexpress.com/us/small-business/openforum/articles/how-not-keeping-up-with-technology-trends-led-to-kodaks-demise/