Harvard Case - GDR versus Kodak - Bart Film Scanner
"GDR versus Kodak - Bart Film Scanner" Harvard business case study is written by Donald Pillittere. It deals with the challenges in the field of Human Resource Management. The case study is 7 page(s) long and it was first published on : Sep 2, 2009
At Fern Fort University, we recommend that GDR focus on its core competency of developing innovative film scanning technology while outsourcing manufacturing and distribution to a reputable partner. This strategy allows GDR to leverage its technological expertise and maintain a competitive edge in the market, while minimizing the financial and operational risks associated with large-scale manufacturing and distribution.
2. Background
This case study centers on GDR, a small company specializing in the development of film scanners, facing a crucial decision. They have developed a revolutionary film scanner, the Bart, with potential to disrupt the market. However, GDR lacks the resources and expertise to manufacture and distribute the Bart on a large scale. Kodak, a well-established industry giant, has expressed interest in acquiring GDR or licensing the Bart technology.
The main protagonists are:
- GDR: A small, innovative company with limited resources but strong technical expertise.
- Kodak: A large, established company with vast manufacturing and distribution capabilities.
- Bart: The revolutionary film scanner developed by GDR.
3. Analysis of the Case Study
This case study presents a classic strategic dilemma for a small, innovative company facing a larger, established player. We can analyze the situation using the following frameworks:
Porter's Five Forces:
- Threat of new entrants: Low, due to the specialized nature of the technology and high entry barriers.
- Bargaining power of buyers: Moderate, as buyers have several alternative scanning options.
- Bargaining power of suppliers: Low, as GDR can source components from multiple suppliers.
- Threat of substitutes: Moderate, as digital cameras and other scanning technologies exist.
- Competitive rivalry: High, due to the presence of established players like Kodak.
SWOT Analysis:
- Strengths: GDR's technological innovation, strong R&D capabilities, and a niche product.
- Weaknesses: Limited resources, lack of manufacturing and distribution infrastructure.
- Opportunities: Growing market for film scanning, potential partnerships with larger companies.
- Threats: Competition from established players, potential for technology obsolescence.
Competitive Advantage: GDR's competitive advantage lies in its innovative technology, which offers superior quality and features compared to existing scanners. However, this advantage is vulnerable without proper manufacturing, distribution, and marketing capabilities.
4. Recommendations
- Focus on Core Competency: GDR should continue to invest in research and development, focusing on improving the Bart's technology and developing new features. This will ensure they maintain their competitive edge and attract potential partners.
- Outsource Manufacturing and Distribution: GDR should partner with a reputable manufacturing and distribution company, preferably one with experience in the imaging industry. This will allow GDR to leverage their expertise and minimize the financial and operational risks associated with large-scale production.
- Develop a Strong Marketing Strategy: GDR should invest in a comprehensive marketing strategy to create awareness and demand for the Bart. This can include online marketing, partnerships with photography communities, and targeted advertising.
- Build a Strong Team: GDR should invest in talent management and leadership development to build a strong team capable of executing the strategy. This includes hiring and recruitment of skilled personnel, providing employee training and career advancement opportunities, and fostering a positive organizational culture that values innovation and collaboration.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Focusing on innovation and technology development aligns with GDR's mission and core competencies.
- External customers and internal clients: Outsourcing manufacturing and distribution allows GDR to focus on meeting customer needs through product innovation and marketing.
- Competitors: This strategy allows GDR to compete effectively with established players by leveraging their strengths and minimizing their weaknesses.
- Attractiveness: This strategy offers a higher probability of success than attempting to build a large-scale manufacturing and distribution infrastructure from scratch.
6. Conclusion
By focusing on its core competency, leveraging strategic partnerships, and developing a strong marketing strategy, GDR can successfully launch the Bart and establish a strong position in the film scanning market. This strategy allows GDR to capitalize on its innovative technology while minimizing the risks associated with large-scale operations.
7. Discussion
Alternatives:
- Licensing the technology to Kodak: This option offers quick revenue generation but risks losing control over the Bart's development and marketing.
- Acquiring a manufacturing and distribution company: This option requires significant financial investment and may not be feasible for GDR's current resources.
Risks:
- Partner selection: Choosing the wrong manufacturing and distribution partner can lead to quality issues, delays, and financial losses.
- Market demand: The market for film scanning may not be large enough to support GDR's ambitions.
- Technological obsolescence: New technologies may emerge that render the Bart obsolete.
Key assumptions:
- The Bart offers a significant technological advantage over existing film scanners.
- A suitable manufacturing and distribution partner can be found.
- GDR can develop a successful marketing strategy.
8. Next Steps
- Partner Selection: Conduct a thorough evaluation of potential manufacturing and distribution partners, focusing on their experience, capabilities, and reputation.
- Marketing Plan Development: Develop a comprehensive marketing plan that includes online and offline channels, partnerships, and targeted advertising.
- Team Building: Invest in talent management and leadership development to build a strong team capable of executing the strategy.
- Financial Planning: Secure funding to support the development, manufacturing, and marketing of the Bart.
By taking these steps, GDR can successfully launch the Bart and establish a strong position in the film scanning market. This strategy allows GDR to leverage its innovative technology and achieve long-term success.
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Case Description
Georginelli Dental Research (GDR) has transitioned from an agile entrepreneurial company to one that has become overly cautious as its high-margin film sales have eroded. Even though the phases-and-gates process in place at GDR provides guidance to projects, the spirit that led the company to past success has been removed from the organization. The two main characters of the case want to bring back that "can do" spirit as they attempt to rapidly commercialize the Bart scanner and extend the life of film. The issues in the case concern: a) entrepreneurial companies and their business strategies and processes for managing new product development b) the implications these strategies and processes have on addressing the needs of customers, shareholders and employees c) the role people can play in "pushing through" corporate processes and culture to improve time-to-market. The case focuses on the ways individuals might overcome internal company resistance or roadblocks by partnering with an OEM partner that possesses complementary capabilities. When seeking a strategic partner, most think in terms of technical skills; however, the culture or DNA of a partner is just as important. The case is intended for use in courses in managing new product commercialization, managing technology and innovation, strategic thinking, international business and leadership.
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