11 February 2007

Kodak changes industry business model


Kodak is introducing new all-in-one printers and inks on the consumer market with a challenging prospects for consumers. Not only are the inks a lot cheaper than the competition, the printed paper will show vibrant colours for a 100 years (compared to 15 today). The most interesting point of the marketing strategy is the price positioning of the consumables. Ink prices can be higher than expensive perfumes, not in the case of Kodak. Instead of discounting on the hardware and making huge profits on the supplies, as companies as HP, Canon and in other industries Gillette do, Kodak says they want to address the key consumers' dissatisfaction: the high cost of inks. It will be fascinating to watch how their strategy will work out.

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