Eastman Kodak : Meeting the Digital Challange
EASTMAN KODAK : MEETING THE DIGITAL CHALLANGE
The case basically opens up with information regarding the present time. The information is presented in chronological order based on the company's CEOs. It first provides with a history of the company's creation. It moves on to the diversification of Kodak's core competency, traditional photography to digital imaging and data storage.
As stated earlier, the case studies has been segmented based on the company heads and their strategies and achievements. Starting with the founder George Eastman, the case study talks about how the idea for the company came about and the values that Eastman upheld in his company. After which, the Kay Whitmore era begins, where the company focuses on digital imaging and data storage.
During Whitmore's leadership, Kodak diversified into life sciences. While entering the market of healthcare imaging (diagnostic equipment) was a proper fit, entering healthcare activities (nutritional supplements) and pharmaceuticals was not a wise decision. For a company like Kodak which has a very strong association with photography, entering a market that does not fit in with its image would not benefit the company. Another major mistake was not purchasing Chester Carlson's xerography patents now called Xerox Corp. Such an investment would have greatly benefited Kodak financially, especially due to the fact that it fit with the company's image. This clearly should a lack of future foresight. However there were good decisions made during Whitmore reign. Focus on image storage and data retrieval systems added to Kodak's market presence. The acquisition of Eikonix Corp provided Kodak with a leading position in commercial imaging market. However it was only till the late 1980s that Kodak directed its initiatives towards the consumer market. This was another flaw. Consumers play a key role in the photography market. They also want a piece of the action', however at a lower cost. Instead of investing
The case basically opens up with information regarding the present time. The information is presented in chronological order based on the company's CEOs. It first provides with a history of the company's creation. It moves on to the diversification of Kodak's core competency, traditional photography to digital imaging and data storage.
As stated earlier, the case studies has been segmented based on the company heads and their strategies and achievements. Starting with the founder George Eastman, the case study talks about how the idea for the company came about and the values that Eastman upheld in his company. After which, the Kay Whitmore era begins, where the company focuses on digital imaging and data storage.
During Whitmore's leadership, Kodak diversified into life sciences. While entering the market of healthcare imaging (diagnostic equipment) was a proper fit, entering healthcare activities (nutritional supplements) and pharmaceuticals was not a wise decision. For a company like Kodak which has a very strong association with photography, entering a market that does not fit in with its image would not benefit the company. Another major mistake was not purchasing Chester Carlson's xerography patents now called Xerox Corp. Such an investment would have greatly benefited Kodak financially, especially due to the fact that it fit with the company's image. This clearly should a lack of future foresight. However there were good decisions made during Whitmore reign. Focus on image storage and data retrieval systems added to Kodak's market presence. The acquisition of Eikonix Corp provided Kodak with a leading position in commercial imaging market. However it was only till the late 1980s that Kodak directed its initiatives towards the consumer market. This was another flaw. Consumers play a key role in the photography market. They also want a piece of the action', however at a lower cost. Instead of investing