The subsidiaries had to adopt uniform product identification codes. Customer orders would continue to be received and processed at each marketing subsidiary.
As a result, the distribution management program needed to be rewritten. Bishop believed that the concept of direct distribution was right for Polaroid in Europe and he was willing to have the U.
Most subsidiaries did not have professional transportation staff.
By going to direct distribution, subsidiaries would lose a buffer between the central distribution center and their customers. The national subsidiaries had knowledge of customer-specific distribution requirements, such as special packaging needs, customer preferences about product delivery times and locations, and how to handle rush orders.
In the early s, deregulation of the U. While management had understood in the s that market studies are in fact an important element and created a group, they were unable to increase the speed of development.
Evaluate each detail in the case study in light of the HBR case study analysis core ideas. Brushing up HBR fundamentals will provide a strong base for investigative reading. In fact, Polaroid had developed one of the best digital cameras. As a result, inheadquarters staff agreed to provide subsidiaries with computerized distribution capabilities if the subsidiaries agreed to adopt standard procedures and systems and to reduce staffing in the distribution area.
Its market share in digital cameras was less than 25 percent, and within the next few years it continuously lost market share and profits. Other types of cameras and specialty films were manufactured in the United States, near corporate headquarters in Cambridge, Massachusetts.
These accounts would specify the timing of product delivery, packaging, pallet size, and other features that conformed to their requirements e. Hence, traversing borders was not viewed as a major problem, particularly for a company that had a good reputation with customs agents.
Although reducing the number of warehouses in Europe had now been agreed upon as a company strategy and was supported by corporate management, the plan was strongly opposed by a number of senior managers in Europe, who felt that the benefits of centralized distribution had not yet been proved and that the decision to consolidate inventory stocks was still open to debate.
Tom Carroll noted the irony of the distribution path for product delivery to a German dealer in Gronau, three miles from Enschede. Champions of direct distribution argued that the new system would raise the order fill rates even further; for example, direct distribution would improve service levels by solving the problem of having inventory available, but in the wrong place.
Severance costs would need to be paid for all the staff who were terminated. Furthermore, as carriers developed pan-European transport capabilities in preparation forit might be possible for Polaroid to consolidate carriers and receive volume discounts as a result.
Any technological development served to sell film, which was done through channels such as K-Mart and Walmart. As ofthe company was lean: Quoting from a Reuters report which quoted some participants: Marketing managers in the European subsidiaries were very concerned that the proposed changes required heavy reliance on computer systems.Polaroid Corp.: European Distribution System case study.
Janice H. Hammond; Afroze Mohammed Polaroid senior management in the United States proposed moving from a system of 12 decentralized.
This case The Downfall of Polaroid, Corporate Lessons(Part A) focus on Polaroid Corporation, the pioneer of instant photography filed for federal bankruptcy protection under Chapter 11 bankruptcy protection. Though it was a global brand name inthe corporate entity of this pioneer got lost in the way.
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Polaroid Case Study. A Case of Disruptive Innovation Objectives Be able to briefly understand about the term: “Disruptive Technology/Disruptive Innovation” To learn some lessons on innovation management through Polaroid’s story.Download