Kodak Case
Introduction
Eastman Kodak Company, commonly known as Kodak is an American multinational imaging and photographic equipment, materials and services company headquartered in Rochester, New York, United States. It was founded by George Eastman in 1889. Kodak is best known for photographic film products. During most of the 20th century Kodak held a dominant position in this sector. In fact, Eastman Kodak Co. is one of the dominant market share holders within the camera and other photography-related industries. Kodak pioneered amateur photography and is often credited for the invention of roll film and the first camera. The markets for color film and color photofinishing in 1954 were controlled by Kodak. It had over 90% of the amateur color negative film market. In 1994, Kodak appeals to court to terminate 1921 and 1954 decrees that restrict pricing policies. Moreover, fifteen years ago, Kodak was the fourth most valuable brand in the world after Disney, Coca-Cola and Microsoft, but today, the company has totally sunk. Indeed, on January 19, 2012, the company filed for bankruptcy.
We will first discuss about the termination of the 2 decrees and then, try to find out what went wrong in the company that lead to bankruptcy. Finally, we will discuss about the changes I would have made if I was the CEO of Kodak in order to avoid such an end.
Question 1: What are the decrees affecting Kodak's actions? Why were they put into place?
Two decrees affecting Kodak’s actions had been put into place, in 1921and then in 1954. According to the first decree, Kodak had to stop imposing different forms of dealing contracts on retailers, divest all of the acquired firms, license its photofinishing processes and technically assist anybody willing to start a photofinishing business. The decree’s main goal was to provide better conditions for healthy competition in the photo industry. With the development of the color film market, Kodak became its unique leader. The company sold
Eastman Kodak Company, commonly known as Kodak is an American multinational imaging and photographic equipment, materials and services company headquartered in Rochester, New York, United States. It was founded by George Eastman in 1889. Kodak is best known for photographic film products. During most of the 20th century Kodak held a dominant position in this sector. In fact, Eastman Kodak Co. is one of the dominant market share holders within the camera and other photography-related industries. Kodak pioneered amateur photography and is often credited for the invention of roll film and the first camera. The markets for color film and color photofinishing in 1954 were controlled by Kodak. It had over 90% of the amateur color negative film market. In 1994, Kodak appeals to court to terminate 1921 and 1954 decrees that restrict pricing policies. Moreover, fifteen years ago, Kodak was the fourth most valuable brand in the world after Disney, Coca-Cola and Microsoft, but today, the company has totally sunk. Indeed, on January 19, 2012, the company filed for bankruptcy.
We will first discuss about the termination of the 2 decrees and then, try to find out what went wrong in the company that lead to bankruptcy. Finally, we will discuss about the changes I would have made if I was the CEO of Kodak in order to avoid such an end.
Question 1: What are the decrees affecting Kodak's actions? Why were they put into place?
Two decrees affecting Kodak’s actions had been put into place, in 1921and then in 1954. According to the first decree, Kodak had to stop imposing different forms of dealing contracts on retailers, divest all of the acquired firms, license its photofinishing processes and technically assist anybody willing to start a photofinishing business. The decree’s main goal was to provide better conditions for healthy competition in the photo industry. With the development of the color film market, Kodak became its unique leader. The company sold