Eastman Kodak Case Study

Eastman Kodak Case Study

Abstract

Eastman Kodak was an industry leader for decades and they pioneered photographic film.  The Eastman Kodak Company’s foundation dates to 1884 when George Eastman established the Eastman Dry Plate and Film Company to manufacture and market flexible photographic film (Corporate Strategy – Capstone, 2014).  This enabled amateur photographers to take photographs and helped Kodak expand their market for cameras and film.  Unfortunately throughout time, Kodak did not change their strategy to keep up with the competition and the changing technology.

Eastman Kodak has made numerous attempts to update and create new innovative products to stay on top of the market.  And in the 1980’s, they were at the top of their game and even had some hostile takeover attempts.  Due to those takeover attempts, Kodak purchased numerous businesses to counter those attempts.  With these acquisitions, Kodak’s long-term debt grew to $7 billion (Corporate Strategy – Capstone, 2014).  These businesses turned out to be non-profitable over time.

At this time, the competitors were changing their strategy and surpassing Kodak in the digital film market.  And digital technology was becoming the popular way to take pictures, thus eliminating the need for film.  In addition, digital imaging technology was becoming an emerging threat to the traditional products of the photography industry (Corporate Strategy – Capstone, 2014).

Kodak needed to re-evaluate its strategy and adapt to the changing market.  But unfortunately they did not do that and ended up filing Chapter 11 Bankruptcy in 2012 for reorganization.  This case study is a SWOT analysis for their new reorganization.

SWOT Analysis

Strengths

Kodak has a very good brand loyalty.  When people hear the name Kodak, they know that it is a reputable firm with a great history of photographic products.  Many people many not realize they helped the film industry, but recognize them for camera and film.  

The new business plan since filing the bankruptcy should help put them back in competition with their key rivals.  The new Kodak plans to focus on commercial imaging and graphics, together with providing digital printing solutions to businesses.  In the past few quarters, the company exited, divested, or harvested most of its non-core businesses and assets (Campos, 2014).

They have streamlined their staff which allows them the potential for more capital.  The company will emerge with about 8,500 employees, just a fraction of the 145,000 it had at its peak in the 1980s (CBS Money Watch, 2013).  This capital will give them the opportunity to create more products.

They may have sold some patents, but their patents are a good strength for their commercial printers.  In fact, they have many patent infringements against other companies.  Kodak had counted on a victory in a patent-infringement case against Apple and Research In Motion at the U.S. International Trade Commission to help bring in as much as $1 billion in new revenue.  The company, which contends it invented many of the basic aspects of digital imaging and deserves to be compensated, began shopping more than 1,100 digital imaging patents for sale in July.  It’s also begun an aggressive patent-litigation strategy, suing Apple, HTC Corp., Fujifilm Holdings Corp. and Samsung Electronics Co. in the past week (Jinks and Childs, 2012).