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THE BIRTH OF KODAK EMPIRE
THE RISE OF THE KODAK EMPIRE
THE FALL OF THE KODAK EMPIRE
TYPE: PUBLIC COMPANY
TRADED AS : NYSE:KODK
INDUSTRY: DIGITAL IMAGING PHOTOGRAPHY
FOUNDED: 1888
FOUNDER: GEORGE EASTMEN
HEADQUARTERS: ROCHESTER, NEW YORK
GEORGE EASTMEN WAS “ALSO”
A COLLEGE DROPOUT!!!!
THE COMPANY WAS FOUNDED BY GEORGE
EASTMEN FOLLOWING HIS INVENTION OF THE
DRY PLATE FORMULA
THE INITIAL MANUFACTURING BEGAN IN A
LEASED BUILDING IN ROCHESTER, NEW YORK.
AND HENCE THE BUSINESS TOOK UP…
KODAK’S LEADERSHIP CAME FROM
ITS MARKETING AND
ITS REALTIONSHIPS WITH RETAILERS.
USED THE RAZOR BLADE STRATEGY:
SOLD CAMERAS FOR LOW COST, AND FILM
FUELED KODAK’S GROWTH AND PROFIT.
THE IDEA THAT MONEY CAME FROM
CONSUEMABLES NOT FROM HARDWARE WAS
INDEED HANDY……
BUT…… KODAK ALWAYS AVOIDED
ANYTHING RISKY OR INNOVATIVE.
WORKED TO DEVELOP COLOR FILMS
SINCE 1921 AND SPENT OVER $120
MILLION BY 1963.
ITS PHOTO FINISHING PROCES BECAME
THE INDUSTRY STANDARD WORLDWIDE.
BY 1976 KODAK CONTROLLED 90% OF
THE FILM MARKET AND 85% OF THE
CAMERA SALES IN THE UNITED STATES…
IN 1981 ITS SALES REACHED $10 BILLION.
WOW THAT INDEED BIG…
BETWEEN 1983 AND 1993, KODAK
ACQUIRED:
IBM: COPIER SERVICE BUSINESS
MASS MEMORY: WHICH SOLD FLOPPY
DISK
STIRLING DRUGS: PHARMACEUTICAL
FIRM.
CLINICAL DIAGNOSTIC: PRODUCED IN-
VITRO BLOOD ANALYZERS.
“WE WERE THE IMAGING COMPANY OF
THE WORLD. WE LITERALLY HAD NO
COMPETITON FOR SO LONG,
MANAGEMENT HADN’T BECOME
ACCUSTOMED TO IT. HISTORICALLY, IF
THERE WAS A COMPETITOR, KODAK
WOULD BLOW THEM AWAY.”
-- A FORMER KODAK EXECUTIVE
THE COMPANY’S WORLDWIDE
EMPLOYEMENT REACHED 75,000 BY
1960 .
IN LESS THAN 130 YEARS, KODAK
BECAME A GLOBAL FORCE.
THE COMPANY BROADENED THE SCOPE
OF PRODUCTS THROUGH
MOTION PICTURE,
MEDICAL IMAGING,
DOCUMENT IMAGING,
PRINTING AND PUBLISHING,
SPACE EXPLORATION.
A VARIETY OF PRODUCTS INCLUDE:
FILM ROLL HOLDERS,
AREIAL CAMERAS SPECIFICALLY FOR
WORLD WAR I,
16 MILLIMETER MOTION FILM AND
CAMERA,
X RAY PAPERS,
STEREOSCOPIC CAMERA USED ON
APOLLO 11 MISSION
LIGHT EMITTING HIGH SPEED PRINTER,
PHOTO CD SYSTEM AND MUCH MORE.
THIS BUSINESS MAGNET KODAK KEPT
GATHERING MANY AWARDS, NAME AND
FAME BUT THEN SOMETHING
HAPPENED IN THE MID 1980s.
SOMETHING THAT CHANGED THINGS
FOREVER……
INSTANT PHOTOGRAPHY
IT THREATENED KODAK’S PROFITS FROM
CHEMICALS AND FILMS.
KODAK RESPONDED BY INTRODUCING
ITS OWN INSTANT PHOTOGRAPHY
PRODUCTS.
BUT POLAROID SUED ALLEGING THAT
BETWEEEN 1976 AND 1986 KODAK STOLE
ITS TECHNOLOGY, ASKING FOR $12
BILLION IN DAMAGES
CUT RATE FILM FROM JAPAN
FUJI STARTED SELLING FILMS AT THE
LOWEST OF PRICES POSSIBLE, FAR
BELOW THAT OF KODAK’S.
DIGITAL PHOTOGRAPHY
THOUGH DIGITAL PHOTOGRAPHY WAS
INVENTED BY RESEARCHERS AT KODAK,
YET IT COULDN’T HELP IT FLOAT ON THE
POOL OF DEMOLITION.
WITH THE ADVENT OF DIGITAL
PHOTOGRAPHY THE DEMAND FOR FILMS
ROLLS VANISHED AND SO DID KODAK.
THE BIGGEST THREAT AND COMPETITION
TO KODAK CAME UNDER THE
BRANDNAME
“FUJI FILM”
FUJI STARTED SELLING COLOR FILMS AT
COST NEARLY 20% LESS THAN KODAK’S.
CANON INC.
FUJI PHOTO FILM CO.
HEWLETT PACKARD CO.
NIKON
SONY CORP.
IN JANUARY 2012, KODAK FILED FOR
CHAPTER 11 BANKRUPTCY
PROTECTION AND IN FEBRUARY 2012,
KODAK ANNOUNCED THAT IT WOULD
CEASE MAKING DIGITAL CAMERAS,
POCKET VIDEO CAMERAS AND DIGITAL
PICTURE FRAMES AND FOCUS ON THE
CORPORATE DIGITAL IMAGING MARKET.
IN AUGUST 2012, KODAK ANNOUNCED IT
IS PLANNING TO SELL ITS FILM,
COMMERCIAL SCANNERS AND KIOSK
DIVISIONS. ALL, THESE EVENTS HAVE
AFFECTED THE SHARE PRICE OF
KODAK AND THE NUMBER OF
EMPLOYEES
“AND REMEMBER THAT CHANGE IS THE
ONLY THING IN THE NATURE THAT
CANNOT BE CHANGED……
SO IF YOU DON’T CHANGE WITH TIME,
YOUR TIME WOULD CHANGE FOR EVER”
AUSTEEN CYGNUS.

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The Rise and Fall of Kodak Empire

  • 1.
  • 2.
  • 3. THE BIRTH OF KODAK EMPIRE THE RISE OF THE KODAK EMPIRE THE FALL OF THE KODAK EMPIRE
  • 4. TYPE: PUBLIC COMPANY TRADED AS : NYSE:KODK INDUSTRY: DIGITAL IMAGING PHOTOGRAPHY FOUNDED: 1888 FOUNDER: GEORGE EASTMEN HEADQUARTERS: ROCHESTER, NEW YORK
  • 5. GEORGE EASTMEN WAS “ALSO” A COLLEGE DROPOUT!!!! THE COMPANY WAS FOUNDED BY GEORGE EASTMEN FOLLOWING HIS INVENTION OF THE DRY PLATE FORMULA THE INITIAL MANUFACTURING BEGAN IN A LEASED BUILDING IN ROCHESTER, NEW YORK. AND HENCE THE BUSINESS TOOK UP…
  • 6. KODAK’S LEADERSHIP CAME FROM ITS MARKETING AND ITS REALTIONSHIPS WITH RETAILERS. USED THE RAZOR BLADE STRATEGY: SOLD CAMERAS FOR LOW COST, AND FILM FUELED KODAK’S GROWTH AND PROFIT. THE IDEA THAT MONEY CAME FROM CONSUEMABLES NOT FROM HARDWARE WAS INDEED HANDY……
  • 7.
  • 8. BUT…… KODAK ALWAYS AVOIDED ANYTHING RISKY OR INNOVATIVE. WORKED TO DEVELOP COLOR FILMS SINCE 1921 AND SPENT OVER $120 MILLION BY 1963. ITS PHOTO FINISHING PROCES BECAME THE INDUSTRY STANDARD WORLDWIDE.
  • 9. BY 1976 KODAK CONTROLLED 90% OF THE FILM MARKET AND 85% OF THE CAMERA SALES IN THE UNITED STATES… IN 1981 ITS SALES REACHED $10 BILLION. WOW THAT INDEED BIG…
  • 10.
  • 11. BETWEEN 1983 AND 1993, KODAK ACQUIRED: IBM: COPIER SERVICE BUSINESS MASS MEMORY: WHICH SOLD FLOPPY DISK STIRLING DRUGS: PHARMACEUTICAL FIRM. CLINICAL DIAGNOSTIC: PRODUCED IN- VITRO BLOOD ANALYZERS.
  • 12. “WE WERE THE IMAGING COMPANY OF THE WORLD. WE LITERALLY HAD NO COMPETITON FOR SO LONG, MANAGEMENT HADN’T BECOME ACCUSTOMED TO IT. HISTORICALLY, IF THERE WAS A COMPETITOR, KODAK WOULD BLOW THEM AWAY.” -- A FORMER KODAK EXECUTIVE
  • 13. THE COMPANY’S WORLDWIDE EMPLOYEMENT REACHED 75,000 BY 1960 . IN LESS THAN 130 YEARS, KODAK BECAME A GLOBAL FORCE.
  • 14.
  • 15. THE COMPANY BROADENED THE SCOPE OF PRODUCTS THROUGH MOTION PICTURE, MEDICAL IMAGING, DOCUMENT IMAGING, PRINTING AND PUBLISHING, SPACE EXPLORATION.
  • 16. A VARIETY OF PRODUCTS INCLUDE: FILM ROLL HOLDERS, AREIAL CAMERAS SPECIFICALLY FOR WORLD WAR I, 16 MILLIMETER MOTION FILM AND CAMERA, X RAY PAPERS, STEREOSCOPIC CAMERA USED ON APOLLO 11 MISSION LIGHT EMITTING HIGH SPEED PRINTER, PHOTO CD SYSTEM AND MUCH MORE.
  • 17. THIS BUSINESS MAGNET KODAK KEPT GATHERING MANY AWARDS, NAME AND FAME BUT THEN SOMETHING HAPPENED IN THE MID 1980s. SOMETHING THAT CHANGED THINGS FOREVER……
  • 18. INSTANT PHOTOGRAPHY IT THREATENED KODAK’S PROFITS FROM CHEMICALS AND FILMS. KODAK RESPONDED BY INTRODUCING ITS OWN INSTANT PHOTOGRAPHY PRODUCTS. BUT POLAROID SUED ALLEGING THAT BETWEEEN 1976 AND 1986 KODAK STOLE ITS TECHNOLOGY, ASKING FOR $12 BILLION IN DAMAGES
  • 19. CUT RATE FILM FROM JAPAN FUJI STARTED SELLING FILMS AT THE LOWEST OF PRICES POSSIBLE, FAR BELOW THAT OF KODAK’S.
  • 20. DIGITAL PHOTOGRAPHY THOUGH DIGITAL PHOTOGRAPHY WAS INVENTED BY RESEARCHERS AT KODAK, YET IT COULDN’T HELP IT FLOAT ON THE POOL OF DEMOLITION. WITH THE ADVENT OF DIGITAL PHOTOGRAPHY THE DEMAND FOR FILMS ROLLS VANISHED AND SO DID KODAK.
  • 21. THE BIGGEST THREAT AND COMPETITION TO KODAK CAME UNDER THE BRANDNAME “FUJI FILM” FUJI STARTED SELLING COLOR FILMS AT COST NEARLY 20% LESS THAN KODAK’S.
  • 22. CANON INC. FUJI PHOTO FILM CO. HEWLETT PACKARD CO. NIKON SONY CORP.
  • 23.
  • 24.
  • 25. IN JANUARY 2012, KODAK FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION AND IN FEBRUARY 2012, KODAK ANNOUNCED THAT IT WOULD CEASE MAKING DIGITAL CAMERAS, POCKET VIDEO CAMERAS AND DIGITAL PICTURE FRAMES AND FOCUS ON THE CORPORATE DIGITAL IMAGING MARKET.
  • 26. IN AUGUST 2012, KODAK ANNOUNCED IT IS PLANNING TO SELL ITS FILM, COMMERCIAL SCANNERS AND KIOSK DIVISIONS. ALL, THESE EVENTS HAVE AFFECTED THE SHARE PRICE OF KODAK AND THE NUMBER OF EMPLOYEES
  • 27.
  • 28. “AND REMEMBER THAT CHANGE IS THE ONLY THING IN THE NATURE THAT CANNOT BE CHANGED…… SO IF YOU DON’T CHANGE WITH TIME, YOUR TIME WOULD CHANGE FOR EVER” AUSTEEN CYGNUS.