Eastman Kodak Essay

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1101IBA Tute Case Analysis – Preparation Sheet Week 4 Tutorial ------------------------------------------------- Case for critical thinking: Eastman Kodak ------------------------------------------------- ------------------------------------------------- 1. Describe the problems which occurred at Eastman Kodak. * Kodak’s film-based businesses fell by 18% even though its digital sales surged 40%. * Kodak was fighting to recover from a tech revolution that was strangling its core business. Kodak was late to recognise the problem, slow to react, and then went down the wrong innovation path (paragraph 5). * Kodak’s stock was trading at about 26 per share, down from a high of 95 in 1997. Kodak has been in the red for eight consecutive quarters, losing a total of $2 billion (paragraph 7). * There is a hierarchical culture that believes in the omnipotence of leadership (paragraph 8). * Before Perez arrived on the scene, Kodak was in denial. The company supposedly been on a decade-long journey to digital technology, yet very little had actually been done. The hope was that Kodak might be able to slow the shift to digital through aggressive marketing (paragraph 9). * Around 27,000 jobs were eliminated because Perez decided to close down film factories (paragraph 13). * Kodak used to have a hard time accepting or asking for advice from other companies and old habits die hard (paragraph 17 & 20). 2. Why do YOU think these were problems? * While blazing growth of camera sales has helped blunt the effects of Kodak’s fast-fading film revenues, it hasn’t replaced the rich profits of the film business (paragraph 2). Digital cameras make a lot of profit however the film business came long before digital cameras and was successful for many years therefore it would take longer for digital cameras to fully overtake film

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