Kodak is a leading digital imaging technologies provider in the world. The company serves the photographic and graphic communication markets through its range of imaging products and services. Kodak operates its business through three segments, namely, Film, Photo finishing and Entertainment Group (FPEG), Graphic Communications Group (GCG), and Consumer Digital Imaging Group (CDG). The FPEG segment of the company offers photographic products and services such as paper, film and chemicals for the creation of motion pictures and for developing consumer, professional and industrial imaging applications. The company is headquartered in Rochester United States and employs 18800 employees as of 2010. Kodak is headed by Antonio M. Perez since 2005. The company reported revenues of $7.18 Billion during the fiscal year ended December 2010, a decrease of 5.51% from 2009.
The operating loss of the company was $438 Million during the fiscal year 2010, as compared to an operating loss of $9 Million during 2009. The net loss of the company was $687 Million during the fiscal year 2010, as compared to a net loss of $210 Million during 2009. During fiscal year 2010, the company generated revenue of $2.25 Billion from the FPEG segment, which accounted for 29.67% of total revenue in 2010, down 24.4% over 2009. In 2010, the company generated revenue of $2.72 Billion from the GCG segment, which accounted for 35.84% of total revenue in 2010, down 18.2% over 2009. During fiscal year 2010, the company generated revenue of $2.61 Billion from the CDG segment, which accounted for 34.43% of total revenue in 2009, down 15.2% over 2009. At the end of 2010, the company reported revenue of $4 Million from the others segment, indicating 42.9% decline over 2009.
During 2010, the company introduced virtually invisible ink for the nexpress production presses. The ink will satisfy the need of security and inventory management applications and provide new opportunities to the company. In March 2011, the company introduced new consulting and custom development services for print service providers, solutions for packaging professionals and TRILLIAN SP thermal plates, shows the robust solutions for automated prepress workflow. Further, in January 2011, the company entered into a technology cross license with Samsung Electronics Co Ltd. , it which will enable both the companies to access each other's patent portfolio. The company expanded its marketing partnership with PGA TOUR and became the official imaging provider of the PGA TOUR, the Champions Tour and Nationwide Tour.
[...] Although, Eastman Kodak Co plans to focus on fastest emerging inkjet printer marketspace in the next 18-24 months, the global market share stood at (Datamonitor, 2012). ➢ Opportunities: During the past few years, there has been steep increase of demand for digital cameras with interchangeable lens worldwide. Although Eastman Kodak Co will be discontinuing camera operations it plans to license the brand equity and value on long-term basis to third party manufacturers. ➢ Threats: The company directly competes with early movers such as HP and Canon with market share of 41% and 18% respectively on worldwide basis (IDC, 2012). [...]
[...] Eastman Kodak Co faces steep competitive pressures from Samsung and Brother with global market share respectively. The company operates in slightly consolidated digital cameras and hardcopy peripherial marketspace worldwide. The company's core addressable market i.e. US hardcopy peripherial slightly declined to 26.1 million units per annum in 2011. Marketing & Promotional Strategic Developments In 2011, SG&A expenses for Eastman Kodak Co stood at US$ 1.15 billion i.e of group revenues. The company has been steadily declining its marketing, sales and promotional initiatives across domestic and international markets attributed to slow down in revenue mix for past 18-36 months. [...]
[...] ➢ Finally, natural disaster such as Tsunami, Hurricanes etc and energy shortage at production facilities will hamper business continuity and revenue growth. ➢ Volatility in the capital markets and interest rates will enhance pension expenses and impact net margins. ➢ The company was publicly listed on New York Stock Exchange with delisting in January 2012. It has secured additional credit facility from Citibank. Further, downgrades in credit ratings will enhance liquidity risk and enhance cost of borrowings. ➢ Product recall and damaged goods distributed to high net worth individuals will hamper long-term competitive advantage. [...]
[...] Eastman Kodak Co Risk Map (2012) Disclaimer: The risk map is prepared on our assumptions and is not taken from any public announcement or article. Source: Annual Report (2011) Corporate Social Responsibility The three basic pillars of corporate social responsibility stood as (Takala & Pallab p. ➢ Financial: The company paid negligible dividends for past three consecutive years (2009-2011). ➢ Society: The company paid donations worth US$ 2.4 million to not for profit institutions and political parties in United States. [...]
[...] Strong inkjet printer based service portfolio (cloud based managed printing infrastructure service) offered by HP on worldwide basis is enhancing its dominant positioning on medium to long term basis (Datamonitor, 2012). Risks, challenges and Limitations Eastman Kodak Co faces steep macro and micro risks due to its operations across 50 countries worldwide. The core risks are as follows (GlobalData, 2012): ➢ Low employee retention and higher labor disputes will hamper competitive advantage. The company needs to attract and retain unique lateral thinking centric talent pool to improve penetration across global R&D centric digital photography and printing marketspace. ➢ Higher foreign exchange currency fluctuation will hamper EBIT margins. [...]
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