Polaroid-Kodak
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Case Preparation Questions:
• Why has Kodak entered the instant
camera business?
• How serious is the threat to Polaroid?
• What should Polaroid do?
Competitor Analysis
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For each of Polaroid and Kodak:
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Goals
Assumptions
Strategic resources
Stakes in the instant market
Position and motives vis a vis a battle
Market Signals
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What market signals were used by
Kodak surrounding its entry into the
instant market?
Game Theory Formulation
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Kodak’s choices
A . Go aggressively for a large share (fight)
B . Accept a modest share (dètente)
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Polaroid’s choices
A . Aggressively protect its dominance
(fight)
B . Yield Kodak a substantial piece of the
market (dètente)
Strategic Outcome Matrix
Polaroid
Fight
Détente
Fight
Kodak
Détente
Game Theory Analysis
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Interpret Kodak’s move in terms of
fight or dètente--which is it?
Analyze the options available to
Kodak. What will happen if it fights?
dètentes?
What choice options and potential
costs/benefits are available to
Polaroid now that Kodak has mode
it’s move?