Polaroid

Polaroid Family Imaging Market

Don’t do anything that someone else can do. Don’t undertake a project unless it is manifestly important and nearly impossible. Edwin Land Founder Polaroid Corporation

Polaroid’s History 

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1937 – Edwin Land developed Polarization 1948 - 1st Instant camera 1972- SX-70 camera 1977 - Polavision instant movie system 1986 – Spectra Camera

Financial Analysis Polaroid Corporation PROFITABILITY RATIOS Net Profit Margin:

(Net Income/Sales)

1991 Polaroid* Kodak

Return on Stockholders' Equity: (Net Income/Total Stockholders' Equity) Polaroid* Kodak

1990

1989

7.70% 3.72%

7.60% 2.88%

1991

1990

1989

0.88% 0.28%

0.73% 0.10%

0.97% 0.08%

33.00% 0.11%

* These percentages are based on sales from within the U.S. and internationally

Financial Analysis LEVERAGE RAT IO Long T erm debt-equity: (Long Term Debt/Total Stockholders' Equity)

Polaroid Kodak

1991 0.61% 1.24%

1990 2.47% 1.04%

1989 3.57% 1.11%

LIQUIDIT Y RATIO Quick Ratio: (Current Assets-Inventories)/Current Liabilities)

Polaroid Kodak

1991 1.27% 0.86%

1990 1.14% 0.86%

1989 1.05% 0.93%

ACT IVITY RAT IO Total Asset T urnover: 1991

(Sales/Total Assets)

Polaroid* Kodak

0.91% 0.66%

1990 1.16% 0.78%

1989 1.07% 0.78%

Polaroid Instant Cameras Parameters

1948

1963

1972

Photo developing

Peel a piece of paper over the photo and apply chemicals

Peeling was not required; but photo remained sticky for a while

Integral film - no timing or treatment required

Time taken to develop

More

More

Relatively less

Photo quality

Black and White

Color

Superior quality – color

The Joshua Story   

Skunkworks -> Blue Sky meeting -> Joshua ‘Think out of the box’ approach -> Team Technological change -> Product

What’s wrong ??? Issues: -Design -Reconsider market potential Actions taken: -Assessor test -Ingenious design Consequences: -Potential market for small cameras -Confidence in Joshua

Vision -> Reality     

Quality test “Automatic Everything” Test Marketing STP 4P’s

Highlights for Marketing Strategies 

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Low cost cameras, costly Polaroid films High technological innovation

Reasons for failure   

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Emerging players Did not adopt to changing trends Poor promotion and advertising campaigns Inefficiency in production Improper channel mix

Strategic Problems - Results   

Loss of market share Sense of urgency Deterioration of Brand Image

Disruptive Innovation 

Change or Die

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In 2001, Polaroid declared bankruptcy.

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Razor-Blade business model

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Technology Driven Company

Disruptive Innovation 

Invested $30 million in Microelectronics lab.

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Spent 40% of R&D on digital imaging tech.

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No new business model.

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Last Efforts (New Mktng Strategies)

Outline of Marketing Strategies (Suggestion)    

Market Penetration Product Development Forward Integration Business Process Reengineering

Market Penetration Problem : Poor promotional/Ad campaigns Solution : Market penetration >Public Relation Campaigns >Sampling Strategies

Product Development  

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Problem: Need For New Products Solution: Product Development Cater To Customer Trends Develop New Film Focus On Core Business

New Product Culture

Forward Integration Problem: High Price Of Film/Lost Market Share  Solution: Forward Integration 

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Increase Control Over Retailers Cater To Consumer Trends

Business Process Reengineering 

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Problem : Failed to recognize the emerging market trends Suggestion: Identify the phases of business

Thank You 