Preview

How Can Kodak’s Ceo Use Digital Imaging to Revitalize the Company?

Good Essays
Open Document
Open Document
936 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Can Kodak’s Ceo Use Digital Imaging to Revitalize the Company?
How can Kodak’s CEO use digital imaging to revitalize the company?
Market Research

Background: ITEM 1. BUSINESS
Eastman Kodak Company (the Company or Kodak) is the world’s foremost imaging innovator, providing imaging technology products and services to the photographic and graphic communications markets. The Company’s products span:
• Digital cameras and accessories
• Consumer inkjet printers and media
• Digital picture frames
• Retail printing kiosks and related media
• On-line imaging services
• Prepress equipment and consumables
• Workflow software for commercial printing
• Electrophotographic equipment and consumables
• Inkjet printing systems
• Document scanners
• Origination and print films for the entertainment industry
• Consumer and professional photographic film
• Photographic paper and processing chemicals
• Wholesale photofinishing services

COMPANY RESTRUCTURING: When comparing the company’s growth over the past several years, at the end of 2003 most of Kodak’s revenue came from the film business, whereas now the company has most of their revenue coming from digital products. Also, only five years ago, most of the company revenues came from the consumer business but now 50% is commercial and the other 50% is from the consumer business.

In a three year time period the Graphic Communication Group yielded $3.6 billion in revenue, this business group did not exist in the company prior to 2003. This also proves pivotal efforts from Kodak to become a digital company. At the end of 2006, revenues in Consumer Digital Group were $4.7 billion. The Film Products Group where Kodak has done significant restructuring finished in 2006 with revenues of $2.3 billion. (from Kodak Annual Mtg. Report 2007)

Kodak has a number of product lines with significant positions in the current market.
Sub-markets that make-up the digital imaging industry = digital cameras, home printing, online services, and retail kiosks and mini-labs.
Tables have
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    JET2 Financial Analysis Task 5 Part I WGU
    • 1596 Words
    • 6 Pages

    JET2 Financial Analysis Task 5 Part I WGU

    Revenue. Revenue includes net sales, cost of goods sold, and gross profit. Gross profit continues to grow at 30.4% with .23%/ $4,900 from year 12 to 13, and .93%/ $19,600 from year 13 to 14. Net sales also showed the same growth at 100%. The company expects continued growth over the next three years and according to the trend analysis, has the ability to do so. This demonstrates the company’s ability to keep overhead under control and maintain constant margin in relation to sales, consistent year after year. The expenses are variable in relation to the sales. Higher gross sales leads to higher operating income available to service debt in the form of interest payments.…

    • 1596 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Datamonitor's Eastman Kodak Company: SWOT Analysis
    • 276 Words
    • 2 Pages

    Datamonitor's Eastman Kodak Company: SWOT Analysis

    Eastman Kodak Company manufactures and markets a range of consumer and professional imaging products. The company primarily operates in the US, Europe, Middle East and Africa. It is headquartered in Rochester, New York and employs about 41,000 people. The company recorded revenues of $13,274 million during the fiscal year ended December 2006, a decrease of 7% over 2005. The operating loss of the company during fiscal year 2006 was $202 million, as compared to the operating loss of $632 million during the fiscal year 2005. The net loss was $601 million in fiscal year 2006, as compared to the net loss of $1,261 million over fiscal year 2005.…

    • 276 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    BUS 599
    • 460 Words
    • 2 Pages

    BUS 599

    BUS 599 Week 9 Assignment 3 A New Strategy for Kodak-Case 28 The rise and fall of Eastman Kodak…

    • 460 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Kodak Memo
    • 1201 Words
    • 5 Pages

    Kodak Memo

    Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as:…

    • 1201 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Sun Micr
    • 301 Words
    • 2 Pages

    Sun Micr

    Sun Microsystems is a leading supplier of computer related products, including servers, workstations, storage devices, and network switches. In the letter to stockholders as part of the 2001 annual report, President and CEO Scott G. McNealy offered the following remarks: Fiscal 2001 was clearly a mixed bag for Sun, the industry, and the economy as a whole. Still, we finished with revenue growth of 16 percent—and that’s significant. We believe it’s a good indication that Sun continued to pull away from the pack and gain market share. For that, we owe a debt of gratitude to our employees worldwide, who aggressively brought costs down—even as they continued to bring exciting new products to market. The statement would not appear to be telling you enough. For example, McNealy says the year was a mixed bag with revenue growth of 16 percent. But what about earnings? You can delve further by examining the income statement in Exhibit 1. Also, for additional analysis of other factors, consolidated balance sheet(s) are presented in Exhibit 2. 1. Referring to Exhibit 1, compute the annual percentage change in net income per common share-diluted (2nd numerical line from the bottom) for 1998–1999, 1999–2000, and 2000–2001. 2. Also in Exhibit 1, compute net income/net revenue (sales) for each of the four years. Begin with 1998. 3. What is the major reason for the change in the answer for question 2 between 2000 and 2001? To answer this question for each of the two years, take the ratio of the major income statement accounts (which follow Exhibit 1 on the next page) to net revenues (sales). (a) Cost of sales (b) Research and development (c) Selling, general and administrative expense (d) Provision for income tax…

    • 301 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Analyzing Managerial Decisions: Eastman Kodak
    • 824 Words
    • 4 Pages

    Analyzing Managerial Decisions: Eastman Kodak

    When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other competitors obtained the ability bring new products to market in a much shorter timeframe (Brickley, 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. With this changing market environment and technological advancement, Kodak lost its monopoly in the film production market and was forced to make a change.…

    • 824 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    What Is Comcast's Diversification Strategy
    • 1236 Words
    • 5 Pages

    What Is Comcast's Diversification Strategy

    The idea for the company came from Eastman’s desire to make the camera and the materials associated with it easier to transport. He began by manufacturing dry glass plates that he would sell to photographers. For a while the business was shaky. The plates were not always made the same and therefore had to be replaced, a service that Eastman provided for free. Eventually the business began to grow and Eastman continued to work on the company’s product. It was his desire to find a lighter and more flexible substitute for the glass plate. “In 1884 he introduced a new film system using gelatin-coated paper packed in a roll holder that could be used in almost every plate camera available at that time.” (Eastman Kodak Company, 2001) Following that, the company introduced its first portable camera in 1888. The new portable camera has a price point of $25. You could shoot the entire roll of film and afterwards the owner would send both the film and the camera to Rochester for processing. The cost of processing was $10 and it included the developing of the film as well as having the company send back the camera loaded with a new roll of film. “This breakthrough is considered to be the birth of snapshot photography.” (Eastman Kodak Company, 2001) During this time Eastman developed and trademarked the name of the camera, Kodak. He came up with the name by first using his favorite letter “K” and playing with words that both…

    • 1236 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Plaintiff Vs Kodak
    • 3132 Words
    • 13 Pages

    Plaintiff Vs Kodak

    Kodak manufactures and sells complex business machines — as relevant here, high volume photocopier and micrographics equipment. Kodak equipment is unique; micrographic software programs that operate on Kodak machines, for example, are not compatible with competitors' machines. Kodak parts are not compatible with other manufacturers' equipment, and vice versa. Kodak equipment, although expensive when new, has little resale…

    • 3132 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Kodak Case Study
    • 2422 Words
    • 10 Pages

    Kodak Case Study

    From the start, the Eastman Kodak company had many distinct advantages. After the invention of the silver halide photographic film, Kodak had a step ahead of any other company during its time. In 1888 Kodak developed a camera which was portable and George Eastman was able to revolutionize the photography industry. He patented his invention and began a journey on developing more advanced photographic technology toward the future of the company. Kodak had a distinctive competency over its competition because of the operations of its business. This helped lead the Kodak Company toward the continuous growth of their business. During the 1970’s-1980’s Kodak encountered problems with revenue and became aware of competition which was rapidly threatening the survival of their business. Kodak began to realize that drastic changes in the structure of the company and the technology of their products would be vital toward success of the Kodak brand. Kodak began restructuring their company with the help of key people and began another journey toward being the top maker of photographic equipment and accessories. The introduction of digital technology would prove to either break or help the Kodak Company.…

    • 2422 Words
    • 10 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Eastman Kodak
    • 1062 Words
    • 5 Pages

    Eastman Kodak

    This 16 percent decline in stock price appears particularly dramatic when it is compared to the substantial increase in stock prices for the market as a whole. Earnings per share at Kodak also dropped substantially. The company realized it had to change its…

    • 1062 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Eastman Kodak
    • 992 Words
    • 4 Pages

    Eastman Kodak

    Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, Smith, & Zimmerman, 2009, p. 358). Technological advances, robotics, new design capabilities and better communications made it possible for the other companies to bring new products to the market in much less time. It was now months instead of years (Brickley et al., 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. Kodak’s monopoly was gone. This caused Eastman Kodak to make changes to its organization architecture in 1984; the design of the current organization architecture no longer fit the business environment for the film industry. One of the largest factors to motivate Eastman Kodak to make these changes, were increased competition and decreased market share. The stock price of Eastman Kodak went from $85 a share in 1982 to just over $71 in 1984. This is a drop of 16% in their stock price (Brickley et al., 2009, p. 358). When compared to the increases in stock for the other companies in this market as a whole, the decrease was disturbing.…

    • 992 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Kodak vs Fugi
    • 1591 Words
    • 7 Pages

    Kodak vs Fugi

    Kana Inagaki. “Fujifilm Thrived by Changing Focus” The Wall Street Journal.1 January 2012, 3 November 2012.…

    • 1591 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Kodak Leadership Issues
    • 597 Words
    • 3 Pages

    Kodak Leadership Issues

    A century old Journey as an Icon, a Company and Market Leader Kodak faced various dilemmas. Though best inventions and good products emerged during 1970 to 2005, lack of clarity led the empire to dust. This resulted in Leaders at Kodak directed and redirected company from Photographic to Imaging to printing to Consumer Electronics. New players like Fuji Films, Apple and Google, used this opportunity and situation to grow against a giant. To add more, product or service diversification was easy for small player while Kodak struggled for same because of organization size. Kodak used ‘Perfect Product (PP)’ approach to reach customers others used more dynamic approach of ‘Invent it, Introduce it and Improve it (III)’. The dilemma to switch between PP to III, lost the race for Kodak. This led to slow product delivery for technology greed customer needs. I see that when Kodak struggled to cross Tuckman’s 2nd stage – Storming Stage, players like Cannon and Nikon were inch close to 4th stage – performing.…

    • 597 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Eastman Kodak Company Case Study
    • 1420 Words
    • 6 Pages

    Eastman Kodak Company Case Study

    1. Diagnose the reasons for Kodak’s market share loss and make your assessment of the likely development of the market if Kodak maintained the status quo.…

    • 1420 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Morelli's Argumentative Analysis
    • 1110 Words
    • 5 Pages

    Morelli's Argumentative Analysis

    It employed over 62,000 employees and dominated this industry. As time progressed, as did the technology in this industry. Today Kodak only employees roughly 7,000 employees. The reason for this downfall was the inability for kodak to adapt with the current market. Competitors such as Nikon and Canon began switching from film photography to digital photography. As kodak made no changes to their industry, they quickly fell to the bottom as their competitors rose. Therefore, adaptation is incredibly important. New technology pushes industries to adapt. Morelli states this by explain “The forces of attraction anchor skilled labor and specialized services, but the exact kind of skills and services evolve over time, following the changing terrain of the technological frontier”. As I stated earlier, for this to occur, there need to be educated smart individuals that understand the ever-changing economy. The fact is, that there are simply not many of these people, and the individuals that do fall under this category congregate in certain areas, because that is where the jobs…

    • 1110 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics