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Kodak February 13, 2007

Posted by Stephanie in Technology.
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When I think of Kodak I associate it with quality film and printed pictures – mainly of my childhood. The camera I use most often today is my Konica Minolta digital camera. There is no film involved and generally no printed pictures, thus no Kodak. For years now I have heard about the difficulties Kodak has been experiencing with slow and less noticeable R&D and digital products. However,

Kodak has “embarked on a risky strategy to reinvent the inkjet printer”

In Business Week, February 19, 2007, an article titled Kodak’s Moment of Truth was published. Indeed, Kodak’s newest vision, its long awaited revival is has just been unveiled. The “top-secret plan, code-named Goya” is making “a big entrance into the consumer inkjet printer business.” A multipurpose machine using new technology for ink will allow pictures to “stay vibrant for 100 years rather than 15.” Furthermore, the ink cartridges will be more than half of HP’s prices. If successful, Kodak could reestablish the company still with the quality assurance to customers, but also as an up-to-date and competitive force in the $50 billion printer industry.

With this exciting new launch I was I probed a little more into articles about Kodak and was surprised to find that Kodak plans on slashing up to 3,000 more jobs .

“By the end of the third quarter, basically my hope is that we’re done with all the announcements of restructurings and jobs and everything else and we’re just fully concentrated on growing” more than a dozen digital ventures from cameras and online photo services to high-volume printing presses.” – Perez

The article did not mention anything specific about what restructuring Kodak was doing, other than cutting jobs down to a mere 30,000, a low since 1930. Another article from Yahoo News, explains a little more in that the job cuts are an effort to reduce its administrative overhead.

Kodak “has already cut excess jobs from its manufacturing division, and will trim the remaining jobs from its selling, general, and administrative unit,” Kodak Chief Financial Officer Frank Sklarsky said in a release. The move will reduce administrative overhead from Kodak’s current level of 18 percent of revenue to just 14 percent to 15 percent.

On the official Kodak website, there is a detailed outline of Kodak’s strategy, portfolio, market segment and core competencies. As Chapter 6 talked about the structures of companies, I would be interested to see an organizational chart of some sort for Kodak.

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Comments»

1. Stacey Swift - February 13, 2007

If Kodak can really offer a printer that will keep pictures more vibrant longer with prices significantly less than those of HP i think they will succeed in the market. I have an HP printer, and the pictures I printed freshman year have already begun to fade. Also, ink does get very expensive and I would be more likely to buy a printer if its cartridge replacements were less expensive.
Also, I have a Kodak digital camera and I am very satisfied with it, so I would be interested in buying a Kodak printer it would be compatible with.

2. silviamocanu07 - February 13, 2007

I think that Kodak’s plan has indeed every chance to be very successful. In order to be at the forefront of an industry, an organization must innovate and lead, which is exactly what Kodak is doing.

However, I am intrigued by their reduction of personnel. Although this will help the company manage its resources more efficiently, I still find their personnel reductions unexpected, particularly in view of the expansion that they wish to achieve in the ink printer market. As we had discussed in class, perhaps the bureaucrary within the organization has affected the communication channels and efficiency, and that is the reason behind massive personnel cuts, particularly in the selling, general and administrative unit.

3. Kira - February 14, 2007

I think this could be a good move for Kodak. Of course it would be a great advantage if Kodak could keep their prices low, but if pictures really will stay vibrant longer, I wouldn’t even mind spending a little more money for the printer or for cartridges. Since you will not have to reprint as much, the costs will probably even out if you were to buy a printer with cheaper cartridges.
Going off of Stacy’s comment, I think that Kodak has the potential to market their digital cameras along with the printer. When I think of Kodak, I do not think of a digital camera. This may make Kodak more competitive in both markets. A package deal may even be incentive for some customers.

4. Elaine - February 23, 2007

This plan sounds like a very promising improvement, for both the company and its customers. I’m surprised I haven’t heard much about this yet, but it appears that these newly improved prints will last longer and be cheaper. I can’t wait for it to launch!

5. K.C. - February 27, 2007

Would Kodak’s new technology be exclusively their own trade secret or could other companies use the same technology that Kodak has been developing? If Kodak could sell this product exclusively without much competition from other printing companies they would succeed. However, I have a feeling that HP probably has something up their sleeves and may be able to produce a similar product after Kodak’s introduction of their own product which would put Kodak back in line again.

6. printers - May 30, 2013

Additionally, it comes with no extra features; such as, no dedicated output tray, no LCD screen, and has only a ‘power’ button to
work it. Using my relative cost analysis, look at the difference in ink
costs. For photo enthusiasts wide format photo printers are a necessity.


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