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Transcription of this question: 3.FujifilmThroughout its history, Fujifilm has innovated. It invented many products such as the firsthigh-speed colour photographic film and the first disposable camera. Fujifilm was one of the mosttrusted brand names in the photographic industry.Fujifilm adapted to changes in the external environment. Digital photography and smartphoneswere causing a significant reduction in sales of photographic film. Researchers at Fujifilmdiscovered that patented chemicals used in Fujifilms photographic film products are antioxidants*that could be used in cosmetic products. In 2007, Fujifilm invented a skincare product line andbranded it Astalift. Fujifilm spent a large amount of money developing the new brand name andbuilding awareness and loyalty. Asta/ift quickly became one of the best-selling brands in Japan’sskincare product market.In response to the success of Astalift, Fujifilm:acquired complementary pharmaceutical companies and built research and development (R&D)facilities to develop additional cosmetic products under the Astalift brand• set up a new division that develops medical equipment based on photographic film and imagingtechnologies (such as digital X-rays) marketed under the Fujifilm brand name.Fujifilm understood changes in societal norms, such as lifestyle and income of women in manyAsian and European countries. At present 20% of sales are generated outside of Japan.In Europe, Fujifilm adapts its marketing mix for consumer preferences in each country. Ultimately,Fujifilm wants to transform Astalift into a global brand.Today, only 1% of Fujifilm’s revenue comes from photographic film, while 99% of revenue comesfrom the sales of cosmetics and medical equipment. Now, Fujifilm has been so successful thatother companies are trying to imitate its success on a global scale. Japan’s beverage companySuntory has developed its own range of natural skincare products to be marketed under itswell-known brand name Suntory.(a)(b)(c)(d)Describe one internal factor and one external factor possibly affectinginnovation at Fujifilm.Explain one benefit of a patent for Fujifilm.Explain one benefit and one cost of research and development (R&D) forFujifilm.Using the Ansoff matrix, examine Fujifilm’s decision to diversify.Discuss the decision of Fujifilm to create the new brand, Astalift.[2]

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