Kodak

Case 13 Teaching Note Kodak at a Crossroad: The Transition from Film-Based to Digital Photography* Overview In 2003, Eastman Kodak lodge faced one of the biggest challenges in its long history: What should the social club do now that demand for its handed-down record products was quickly declining. Should the company turn its back on traditional photography (about 70% of company revenues) to embrace new digital photography technologies? Was this strategy too risky for the company given that the digital photography arena was highly competitive and that many competitors had a head start on developing a arranged digital strategy? It was relatively clear to top focusing that demand for traditional photography products in the U.S. market would keep on to decline, but should Kodak, a company whose name was synonymous with film and photographic written document, really exit a market so central to its identity? Since January 1, 2000, when Daniel Carp took over as of import executive of Kodak, the companys revenues and net income had declined, its shares had dropped by 66%, and Standard & Poors had cut Kodaks identification rating by five grades. Kodak had reduced its workforce by 49% since 1989, cutting 7,300 employees in 2002.

Plans were announced to eliminate up to 6,000 jobs in 2003 to stem future losses, cutting Kodaks traditional photography divisions in Rochester, New York to fewer workers than the firm had apply during the Great Depression. The switch by consumers to digital photography was flood tide much faster than expected and Kodaks traditional film, papers and photofinishing businesses were declining. By the end of 2003, analysts expected that digital cameras would begin to outsell film cameras for the first time in the United States. The digital photography industry was fast-paced and more crowded, offering razor thin profit margins. Kodak was clearly at a crossroads. Stockholders and fall analysts were expressing concerns about Kodaks strategy, questioning whether Kodak... If you want to get a full essay, order it on our website: Ordercustompaper.com

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