Global Linkages Management Linkages Country A Policy Linkages
Global Linkages Management Linkages Country A Policy Linkages Country B Trade and Investment Linkages
Kodak vs. Fujifilm Kodak’s strategy Fuji’s strategy U. S. Sect. 301 filing WTO hearing Japan Asymmetric market penetration
Importance of Japanese Market Stand-alone Attractiveness n #3 ranked global market n $9. 0 billion Strategic Importance n Fuji 70% share of Japanese market n Fuji 14 % of US market (1996)
Kodak’s Section 301 Claims: Fuji and 4 wholesalers collude to keep Kodak out n Japan Fair Trade Commission ignores anti-trust laws; permits progressive rebates to wholesalers n JFTC & MITI limit Kodak’s promotional efforts n Large Store Law n Kodak cuts prices, no market share gains n Fuji has profit sanctuary to use in US market attacks n
Where’s the Evidence? Objective Data: n Sales growth n Profits n Market Share n Yen appreciation Subjective Data: n Policy obstacles? n Access to wholesalers, kiosks?
Exhibit A Kodak vs. Fuji (Sales in $ billions)
Exhibit B Kodak vs. Fuji (ROS%)
Exhibit C Reciprocal Market Penetration
Exhibit D Yen vs. Dollar
Integrated Political and Market Strategies WTO Japan USTR, Congress Non-market Strategies Rules of Competition MITI U. S. Japanese Market Fuji Dominant U. S. Market Kodak Dominant Market Strategies
Kodak’s Actions Market Actions: n Price cuts? n Promotions (Hawaii) n Imitative innovation n Co-branded film n Distribution center n 1998 Nagano Olympics n Kodak blimp Non-market Actions: n § 301 Filing n Lobbying US Congress n PR campaign n Press releases
Kodak-Fuji Policy Timeline May 1995 -- Kodak files § 301 claim with USTR n Sept. 1996 -- US takes Kodak case to WTO n Jan. 1997 -- USTR’s § 301 authority expires n Dec. 1997 -- WTO rules in Fuji’s favor n Feb. 1998 -- WTO rejects USTR appeal n Mar. 1999 -- Clinton reinstates § 301 authority n
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