In 1987, Fuji introduced the QuickSnap 35mm single-use camera in the U.S. market. Kodak, which did not have a comparable product of its own, was caught unprepared in a market that was destined to grow by more than 50 percent per year for the next eight years, from 3 million units in 1988 to 43 million in 1994. By the time Kodak introduced its first model almost a year later, Fuji had already developed a second model, the QuickSnap Flash. Yet Kodak won market share back from Fuji; by 1994, Kodak had captured more than 70 percent of the U.S. market.
The success of Kodak’s response resulted in part from its strategy of developing many distinctively different models from a common platform. Between April 1989 and July 1990, Kodak redesigned its base model and introduced three additional models, all having common components and common production process steps.1 Because Kodak designed its four products to share components and process steps, it was able to develop its products faster and more cheaply. The different models appealed to different customer segments and gave Kodak twice as many products as Fuji, allowing it to capture precious retail space and garner substantial market share.
The platform approach to product development is an important success factor in many markets. By sharing... To read the complete article, login or sign-up using the form below.
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