Rise and Fall of Kodak
Case Code: BSTR417
Case Length: 20 Pages
Pub Date: 2012
Teaching Note: Not Available
Organization: Eastman Kodak Company
Industry: Consumer Electronics
Countries: Unites States
Themes: Corporate Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts
The third quarter of the year 2003 was drawing to an end when iconic brand Eastman Kodak Company (Kodak) decided to shift its focus away from its more than century-old traditional film business to the digital one. The company believed that this shift would boost sales, which had fallen by 5.14% to US$12.5 billion in 2002, to US$16 billion by 2006 and further to US$20 billion in 2010. Daniel Allen 'Dan' Carp (Carp), Chairman and Chief Executive Officer of the company, said, “We are acting with the knowledge that demand for traditional products is declining, especially in the developed markets.
Given this reality, we are moving fast - as digital markets demand - to transform our business portfolio, with an emphasis on digital commercial markets."
According to an industry observer, the shift began in the first quarter of 2003 itself when the company realigned its leadership team and began hiring top leaders with experience in digital technology. However, Kodak witnessed a major leadership shift in April 2003, when Antonio M. Perez (Perez), Corporate Vice President of Hewlett Packard (HP), left his 25-year career in HP and joined Kodak as President and Chief Operation Officer (COO).
In August 2003, the company announced that it had realigned its operations into five main categories: Commercial Printing, Display & Components, Health Imaging, Digital & Film Imaging Systems, and Commercial Imaging. Carp said, "The digital world is full of opportunity for Kodak, and we intend to lead it, as we have led innovation in the imaging industry for more than a century."
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