Analysis Kodak

Powerful Essays
Eastman Kodak: Picture Not So Perfect

Article: “For Kodak, New Risks in Auction of Patents”
By: Dana Mattioli

Background: The Ups and Downs

For the last 100 years, Eastman Kodak thrived as an innovator in the photography arena specializing in graphic communications, photofinishing, and digital imaging (Spector). As an industry leader, Kodak was very profitable with a net profit of $2.5 billion in 1999 and has often been cited as being the “Google” of its day (Economist, “The Last Kodak Moment?”). A large part of Kodak’s success was founded on their internally created patents. To generate revenue, Kodak licensed these patents to other companies giving them access to the technology.
However within the last twenty years, Kodak has been losing ground primarily because of their failure to successfully adapt to the new market of smartphones, cameras and digital photography (Spector). Problems in the last several years have worsened and since 2004 Kodak has only reported one profitable year (De La Merced). An article by the Economist exemplifies Kodak’s decline; “Eastman Kodak built one of the first digital cameras in 1975. That technology, followed by the development of smartphones that double as cameras, has battered Kodak 's old film and camera-making business almost to death.” (Economist, “The Last Kodak Moment?”). A major sign of trouble occurred in September 2011 when Kodak borrowed $160 million from its line of credit, which lead to a quick decline in stock values (Spector). In the past, Kodak was able to rely heavily on selling profitable patent licenses; however, these patents are no longer generating the same level of revenue. The Wall Street Journal suggests that this could be due to the “heavy” amount of licensing on their patents (Mattioli, “For Kodak, New Risks in Auction of Patents). Kodak’s inability to adapt and overspending on research and development has put them in the predicament in which they now stand.

Chapter 11



Cited: "Information about Kodak 's Reorganization." Kodak: Chapter 11 Reorganization. Kodak, n.d. Web. 26 Sept. 2012. <http://www.kodak.com/ek/US/en/Kodak_Transforms/Home.htm>. "Intangible Assets." Accounting Principles I "Intangible Assets." Accounting Principles I: Intangible Assets. Cliff Notes, n.d. Web. 26 Sept. 2012. <http://www.cliffsnotes.com/study_guide/Intangible-Assets.topicArticleId-21081,articleId-21080.html>. "The Last Kodak Moment?" The Economist Mattioli, Dana. "For Kodak, New Risks In Auction Of Patents." The Wall Street Journal 22 July 2012: n. pag. The Wall Street Journal. 22 July 2012. Web. 22 Sept. 2012. <http://online.wsj.com/article/SB10000872396390443295404577543212452303718.html>.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Kodak Business Analysis

    • 538 Words
    • 3 Pages

    Kodak History: Current CEO is Antonio M. Perez. Originally founded in 1881 as “Eastman Dry Plate Company”. Eastman invented the first cameras suitable for non-expert use. In 1888 the name Kodak was born and the Kodak camera was on the market. In 1892 the company was re-named Eastman Kodak and the name has remained the same. Kodak contributed to the introduction to color motion pictures in 1928 by inventing the film with the capabilities to do so. In 1929 Kodak introduced the first motion picture…

    • 538 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Kodak External Analysis

    • 2042 Words
    • 9 Pages

    Eastman Kodak is the leader in digital camera sales, all is not well. Film has always been a high-margin product for Kodak but as this part of the business is rapidly shrinking it's time to look to new products and markets. For the first quarter of 2005, Eastman Kodak reported a $142 million loss. While it may appear Kodak is in dire straights, they are taking actions to establish themselves in the digital printing market. With the leadership of new CEO, Antonio M. Perez, Eastman Kodak is ready…

    • 2042 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Crisis Analysis of Kodak

    • 1061 Words
    • 5 Pages

    Executive Summary Eastman Kodak CO. which headquartered in Rochester New York, USA, was founded in 1892 by George Eastman. The company holds a vital role in the innovation and development of the motion picture industries as well as the film photographic industry. Kodak organized itself in 3 key segments: the Graphic Communication Group (GCG); the Film, Photofinishing, Entertainment Group (FPEG) and the Consumer Digital Imaging Group (CGD). ) This report relays to Kodak’s managers the importance…

    • 1061 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    kodak

    • 2090 Words
    • 9 Pages

    Case Study: Eastman Kodak AdministratorJanuary 27, 2012Case Studies Kodak’s last chance for survival ~ a recommendation on strategic direction Author: Tony Lan Foreword During 2011, Kodak was under intense pressure to survive in the digital imaging business. As professor Burley describes, ‘Kodak was caught in a perfect storm of not only technological, but also social and economic change’ (Neate, 2012). As of Thursday 19 January 2012, Kodak filed for bankruptcy protection (Neate, 2012) and has…

    • 2090 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Kodak Case Analysis

    • 1494 Words
    • 6 Pages

    CASE: Kodak Business Imaging Systems Divisions By Problem How does a multinational corporation choose between various manufacturing sites for its products? Kodak’s business Imaging Systems Division designed, manufactured, marketed and sold microfilm readers and printers. More than 50% of reader/printer businesses were outside the U.S. Kodak’s readers and printers were manufactured in two plants; Rochester, NY and Manus, Brazil. The Rochester plant served the world market except Brazil. The…

    • 1494 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Kodak

    • 1832 Words
    • 8 Pages

    Eastman Kodak Products External analysis of Eastman Kodak Introduction Kodak is the market leader in providing photographic products and services to consumers and commercial customers around the globe for memories, entertainment and information. The company brings inventive and modern products to the market that allows people to take, make and share pictures and experience the magic of photography (History of Kodak, 2008). As the world leader, Eastman Kodak is always looking for talented…

    • 1832 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Kodak

    • 1257 Words
    • 4 Pages

    Kodak Case Study Company Argument MBA-565 Summary In a 1921 consent decree, the government concluded that Eastman Kodak, the pioneer firm of amateur photography, had violated Section 2 of the Sherman Act. By buying competitors and establishing exclusive dealing contracts with retailers, the government claimed that Kodak was acting as a monopoly. The 1921 decree barred Kodak from continuing with these practices. By 1954, Kodak enjoyed a 90% share of the color film market and a 90%…

    • 1257 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Kodak Swot Analysis

    • 2427 Words
    • 10 Pages

    Company Overview Eastman Kodak Company, better known as Kodak, specializes in the production of high quality film and printing products. Found by George Eastman in 1880, Kodak’s success began in 1888, when the company introduced the first simple camera to the consumer market. Kodak would continue to create innovations which revolutionized film and photography. In the late 1800’s Kodak developed the first daylight loading camera and marketed the first film used to make motion pictures. By 1900…

    • 2427 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Eastman Kodak Analysis

    • 732 Words
    • 3 Pages

    At your request, I have compiled information on Eastman Kodak Co., so that you may come to an investment decision. The report will consider the company's background (including Kodak's areas of production), a past obstacle Kodak has had to face and overcome, and a financial snapshot of Kodak over the past five years. BACKGROUND Originally founded in 1880 by George Eastman, the Eastman Kodak company now stands as a leader in the infoimaging industry. Infoimaging is a $385 billion industry that…

    • 732 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Kodak

    • 792 Words
    • 4 Pages

    How Kodak suffered due to a wrong decision. Kodak, because of its market dominance until the 1990s, was the one of the world's top five most valuable brands. Kodak's filing for Chapter 11 bankruptcy protection brings to an end over 130 years of a brand that our grandparents' generation would have seen as revolutionising their lives. Kodak, the company that George Eastman started over 130 years ago was to become part of the lives of everyone who wanted to take pictures of events both special…

    • 792 Words
    • 4 Pages
    Good Essays