Eastman Kodak Company (Kodak), incorporated in 1901, is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals. Kodak's products also include prepress equipment and consumables; imaging sensors; workflow software and services; electro-photographic printing equipment, consumables and service; commercial inkjet printing equipment, consumables and service; document scanners; origination and print films and special effects services for the entertainment industry. The Company's products in the US market span digital still and video cameras and related accessories; consumer inkjet printers and media; digital picture frames; retail printing kiosks, APEX dry lab systems and related media and services. In March 2011, the Company acquired Tokyo Ohka Kogyo Co., Ltd. The US region accounted for 40.5 of the total revenue in 2010 at $2.8 Billion, followed by Europe, Middle East, Africa (EMEA) (31.1), Asia Pacific (17.1), and Canada and Latin America (11.4%).
Kodak conducts research and development activities to improve its existing product line and develop new products. The US division spent $356 Million on its R&D activities, which accounted for 5 of its total revenue, in 2010. It manages various R&D centres in Rochester, New York and in overseas markets such as Canada, China, England, France, Germany, Iceland, Israel, Japan, and Singapore. It also manages operations in Massachusetts, Texas, Minnesota, Connecticut, and California states of the US. Kodak, despite economic slowdown in 2009-10, reported strong operational efficiency with decreased cost structure and increased operating margins. The US division's gross margin increased to 23.25 in 2010 from 23.04 in 2009. The company's net profit margin increased to -2.76 in 2010 from -4.69 in 2009. The company reduced its operating cost as percentage of sales to 100.12 in 2009 from 108.72% in 2008. Increasing operating margin indicates efficient cost management or a strong pricing strategy by the company.
The US market in which Kodak participates is highly competitive. In the digital photography market, the company competes with large players such as Canon, Casio, Fujifilm, HP, Nikon, Olympus, Panasonic, Samsung, and Sony and several other online service companies. This industry is subject to random price reductions with the launch of new products. Further, with the introduction of various mobile phones with cameras, the industry could witness a decline in future.
In such a highly competitive scenario, the company could face challenges related to product pricing, technological advances, and other issues. The company's failure to maintain and enhance its competitive position could adversely affect its business and prospects. Price pressures due to intense competition could lead to reduction in sales with a negative impact on company's margins.
[...] * For a long time, the company has been dominating the market share due to its informed decision making and selling propositions. Weaknesses * At times, Kodak had been facing the drawbacks related to bad communication in its campaigns. This is due to the increasing completion and the pressure to retain its position. * The company's financial position has been over leveraged and this had caused some problems to it. *There is not much of diversification with respect to Kodak's products. In a market dominated by aggressive product display and advertising, it seems that Kodak has restricted itself to niche products. [...]
[...] The products were used by commercial printers in the world. Additionally, Kodak also launched Kodak Prosper presses and imprinting systems. These devices were based on Kodak Stream inkjet technology. The development of this platform gave the required flexibility for digital printing and led to delivering offset-class output with quality, productivity and cost. Kodak's foray into space exploration is a commendable imitative that the company had undertaken along with NASA. This was a world-class initiative on space science and remote sensing missions and is scheduled for more than 40 years. [...]
[...] It is recommend that Kodak make use of the market situation and exploit online resources in terms of marketing and promotional activities too. Threats * There are constant threats from competition in the market due to the emergence of mobile telephony and other modes of communication and photography. * There is a threat of cheaper technology replacing the high end quality of Kodak and this may be seen in developing countries and play a major role in downgrading Kodak's products. [...]
[...] Kodak has been following a philanthropic program that is a reflection of global corporate goals in the area of community development, and business opportunity. By following these, it aims to enhance the quality of living. Some of the values and corporate social responsibility principles are as follows: Kodak has been following the principle of giving respect for the dignity of an individual. It believes that the company cannot function properly if there are issues hampering its collective spirit Kodak also strives to meet its product responsibility goals. [...]
[...] In 1889, a successive concern called the Eastman Company was formed. The company has been called Eastman Kodak Company since 1892, when the New York based Eastman Kodak Company of was organized. Kodak's founder George Eastman had founded the company to overcome his financial troubles and his innovative mind directed the Eastman Kodak Company and placed it at the forefront of the American industry. From the initial years, Kodak has indeed come a long way in becoming one of the top multinational companies of the world. [...]
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