Eastman Kodak Company Jessica Lo Calvin Ng Yvette Olmos Tiffany Taubodo Tuan Tieu Julie Xiong

Kodak’s History The history of Kodak began in 1879 George Eastman Henry A. Strong The world’s first Kodak camera was born in 1888 “You press the button, we do the rest.” “Share moments. Share life.”

Company Name Chronology Eastman Dry Plate Company (1881) Eastman Dry Plate Film Company (1884) Eastman Company (1889) Eastman Kodak Company of New York (1892) Eastman Kodak Company of New Jersey (1901)

George Eastman’s Four Basic Business Principles Mass production at low cost International distribution Extensive advertising Focus on the customer

George Eastman’s Three Additional Policies Foster growth and development through continuing research Treat employees fairly and with respect Reinvest profits to build and extend the business

Financial Highlights 2002 Net sales= $12,835 million Stock price per share at year end= $35.04 Net earnings= $770 million Shareholders at end of year= 89,988 million 2003 Net sales= $13,317 million Stock price per share at year end= $25.67 Net earnings= $265 million Shareholders at end of year= 85,712 million

Financial Highlights 2003 Net sales increased by a tad bit Net earnings decreased significantly Stock prices dropped Shareholders disappeared Less employees in U.S and worldwide

Kodak’s Stock Price As of 4/17/04, Kodak is selling their stocks at $25.35 per share From previous close of the stock price, it rose $0.40 cents.

Today’s Competitors Sony, Olympus, and Canon are all leaders of the digital cameras Kodak falls short at fourth place Kodak holds 14% of the market share

Single-Use Cameras Kodak dominated the market share when the single-use 35mm cameras were still around in 2001 Sony held 51% of the market share

International Service Locations All of the Americas Region, the Latin America Region, Japan, the European Region, the Greater Asia Region, and the Middle East and Africa Within these regions, Kodak exists all in the major cities

U.S. Major Headquarters The four major headquarters in the U.S. Are located in -Windsor, Colorado -Atlanta, Georgia -Oakdale, Minnesota -Toronto, Ontario

Purchasing & Suppliers Keykode equipment and software itself holds at least twenty- six suppliers from all over the world Kodak purchases 3 main material 1.Imaging material manufacturing –chemicals, fuel and energy, and packaging supply 2.Equipment manufacturing –circuit boards, plastics and electronic components 3.Non Manufacturing goods and services –advertising, IT services, and travel/fleet

Kodak’s IT Department Electronic Retrieval Workstations Kodak i7300 Scanner 2400 and 3000 DSV digital scanner/printer IBM –Directly buying from IBM –Standardizing all hardware and installing a set of preinstalled software on all PCs reduces on-site problem solving saves $200 per person by help desk

Porter’s Competitive Forces Model Market leader in traditional film Main focus in manufacturing digital cameras and photo processing services Imaging Industry Entry barriers

Porter’s Competitive Forces Model Continue Industry Demand for digital imaging equipment and services Bargaining powers of buyers Substitutes Existing Competitor Threats

SWOT Analysis Internal Strengths Internal Weaknesses External Opportunities External Threats

Kodak’s Internal Strengths Kodak Brand Name –Biggest Strength –“Kodak moment” Kodak Image –Environmentally & socially conscientious Website –Great detail of product features & uses

Kodak’s Internal Weaknesses No E-Commerce Being Innovative with IT Acquiring without profitability –Expanding just for the sake of growth Product offering –Need to narrow their focus

External opportunities Camera phones –Kiosks Cinema –Investment Multi-Cultural marketing Health care –Expansion

External Threats Competitors –Sony –Canon –Olympus Distinctive Industries –Healthcare –Professional and consumer photography –Government –Cinematography –Docking and imaging

SWOT Analysis Conclusion Based on the SWOT analysis, Kodak may improve by –Investing in selective industries –Improvements in products and services –Brand name recognition in digital industry –Innovation

Competitive Position Cost Leadership –Producing products and services at a low cost –Supplying photography tools to a large number of people –Maintaining a cost advantage over competitors Differentiation Growth

Differentiation Strategy Infoimaging –Form of technology that uses image science and IT –Tool for developing new products and services –Improves communication and commerce –$385B industry

Differentiation Strategy cont. Industry Expansion –Consumer and Professional Photography –Health, Entertainment, Printing, Publishing –Document Imaging Investment in Research & Development –Product Development –Technology Research –Imaging Research

Growth Strategy Switching from traditional film to digital Entering new markets Earnings Growth –Increase Profits and Productivity –Cutting Costs and Dividends Acquisitions –$2-3B acquisition strategy –Acquired at least six leading companies in several industries