Kodak: Fading Moments in Digital Photography


Code : COM0010

Year :

Industry : Engineering, Electrical and Electronics

Region : Global

Teaching Note:Available

Structured Assignment :Available

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Kodak Under George M.C.Fisher George M.C. Fisher (Fisher) joined as the Chairman and CEO of Kodak in late 1993. Things were running smoothly for the company till 1996. Most of the company's revenues at that time came fromfilms and development of photographs. But the advent of digital photography in 1997 saw customers moving away from conventional photography. This was particularly because the digital way was easier to operate, took less time and offered superior quality. The companywas dependent on the sales of films for the profits...

Fisher's Initiatives in Traditional Business Fisher could not afford to neglect the cash cow of Kodak for a long time. He responded to Fuji's price cuts with new promotions. Kodak lowered the prices of its films by an average of 7% in the US. But as the film unit sales in the US rose only by 10%in the second quarter of 1998, the price cuts did not affect the revenues. So, the company's overall revenue from films in the US was almost flat. Jonathan Rosenzweig, an analyst at Salomon Brothers Inc., figured out that, every 1% cut in Kodak's films resulted in roughly 1% drop in its earnings per share...

Carp Steps In Daniel A. Carp (Carp) was appointed Kodak's President and Chief Operating Officer in 1996. He became CEO in 2000. And in 2001, he took up the additional responsibilities of a Chairman. At that time, the company was losing market share because of its inability to adapt to digital world. The company was still dependent on the films for its profits. Carp realized that the dependency on the films would not augur well for the company's future...

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