Mafud jousts::

> How then, did FUJI become so well known so
> quickly? The same way Japanese products, especially automobiles, took over so
> many markets. Not with shoddy products but with government subsidies.

They didn't even have to do that. What Fuji did was to come into a market
that Kodak owned and served with both high-profit and low-profit goods and
services, and compete intensely with them *only* in the high profit
products. They skimmed the cream off the milk and nothing else. If you look
at a Kodak catalog circa 1965 and compare the range of types of photographic
products offered to the sum total of all the types of photographic products
Fuji has EVER offered, the strategy becomes clear. Kodak previously used
profits from high-profit items to subsidize many low-and no-profit items.
Before Fuji arrived, Kodak made some 70-80% of its profits on only two
classes of products--consumer color negative film and long rolls of color
paper used in automated processing machines. But they used the profits from
these to subsidize essentially every product and service they could think of
that photographers might need, from darkroom products to esoteric
duplicating films to educational books to you name it.

Fuji came in and targeted ONLY color films of all types and color paper long
rolls. It competed fiercely. This threw Kodak into disarray, because it had
to slowly and painfully abandon its old strategy and get cutthroat with the
high-profit items in order to compete. Since Fuji's arrival, Kodak is, from
the perspective of the photographer at least, a ghost of its former self. It
has divested itself of many low-profit operations and jettisoned literally
hundreds of types of products and services. It has had to. Fuji saw to it.

> The operative word for nearly
> all Japanese penetration of world markets being niche.

Yeah, like TVs, consumer electronics, automobiles--niches like that. <Very
Big G>
 
> Once a year, when the entire KODAK imaging catalog is released, I am
> thunderstruck by the depth and breadth of KODAK's photographic film
> offerings. From tiny consumer APS to giant ~sheets~ of special order film.
> KODAK offers ~every~ imaginable film product while upstart FUJI has just
> begun to penetrate medium and large format film.

Actually, again, not the case. If you look at the historical record, Kodak
offered relatively few general-purpose films, with relatively infrequent new
product introductions, before Fuji entered the fray. By spurring
competition, Fuji is in fact responsible for the explosion in the numbers
and types of color emulsions that have come on to the market in the past
20-25 years, and for the fact that new films have significantly shorter
product lives than in the more stately days of old.

 
> KODAK doesn't need to be in consumer film to make it

In my informed opinion, kind Sir, absolutely and utterly untrue. Consumer
film is where a great deal of the money is, and essential to the vital
lifeblood of Kodak as well as to Fuji.

--Mike
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