Kodak’s Bankruptcy Case Study Essay Example
1.0 Introduction
Kodak was one of leading companies in photographic film products however today they faced bankruptcy due to slow to adapt its business than others. Kodak founded by George Eastman in late 1880s, it was almost dominated the entire market during 20th century. However Kodak is refused to position its business to a better strategic in 21st century but other competitors are started to innovate their business respectively to gain better market share.
2.0 Situational Analysis
Kodak is ruled over approximately 90% of film market and 85% of camera sales in U.S. during late 1976 (“Kodak’s long fade to black” 2011). However they were facing 5% share decreased in film market in late 1980s and they introduced The KODAK Professional Digital Camera System (DCS) in 1991 that move their business to another era (Kodak n.d.). In 1999, their market share has dropped till 27% which only second place after Fuji Film. In early 2000, Kodak launched “Share Moments. Share Life” advertising campaign worldwide that created a huge impact to Kodak fans. Continuously in 2002, Kodak introduced digital photo processing to consumer. Kodak changed its strategy that expands its market into five different primary operations: Commercial Printing, Display & Components, Health Imaging, Digital & Film Imaging Systems, and Commercial Imaging (Kodak n.d.). Kodak’s share down 25% in 2009 that makes the management planned another round of restructuring of cost cutting. They had retrenched up to 4,500 employees that they have 26,900 employees worldwide (“Kodak to cut up to 4,500 jobs” 2009). Follows by in year 2011, Kodak hired law firm to seek for restructuring advice to prevent of bankruptcy filing (“Kodak seeks help as fears mount” 2011). Unfortunately, Kodak is running out of cash and unable to sell its digital imaging patents that could have rescued the business thus they files for Chapter 11 bankruptcy in 2012 (“Kodak files for Chapter 11 bankruptcy” 2012).
3.0 Digital
Kodak was one of leading companies in photographic film products however today they faced bankruptcy due to slow to adapt its business than others. Kodak founded by George Eastman in late 1880s, it was almost dominated the entire market during 20th century. However Kodak is refused to position its business to a better strategic in 21st century but other competitors are started to innovate their business respectively to gain better market share.
2.0 Situational Analysis
Kodak is ruled over approximately 90% of film market and 85% of camera sales in U.S. during late 1976 (“Kodak’s long fade to black” 2011). However they were facing 5% share decreased in film market in late 1980s and they introduced The KODAK Professional Digital Camera System (DCS) in 1991 that move their business to another era (Kodak n.d.). In 1999, their market share has dropped till 27% which only second place after Fuji Film. In early 2000, Kodak launched “Share Moments. Share Life” advertising campaign worldwide that created a huge impact to Kodak fans. Continuously in 2002, Kodak introduced digital photo processing to consumer. Kodak changed its strategy that expands its market into five different primary operations: Commercial Printing, Display & Components, Health Imaging, Digital & Film Imaging Systems, and Commercial Imaging (Kodak n.d.). Kodak’s share down 25% in 2009 that makes the management planned another round of restructuring of cost cutting. They had retrenched up to 4,500 employees that they have 26,900 employees worldwide (“Kodak to cut up to 4,500 jobs” 2009). Follows by in year 2011, Kodak hired law firm to seek for restructuring advice to prevent of bankruptcy filing (“Kodak seeks help as fears mount” 2011). Unfortunately, Kodak is running out of cash and unable to sell its digital imaging patents that could have rescued the business thus they files for Chapter 11 bankruptcy in 2012 (“Kodak files for Chapter 11 bankruptcy” 2012).
3.0 Digital