GEORGE FISHER WORKS TO TURNAROUND KODAK

A big part of Fisher’s job is to plan a strategy for troubled Kodak. Over the years, the company had envisioned that its photographic technology might some day become outmoded and had done some preliminary work on digital images. However, many in the company were concerned that going in the digital direction would destroy Kodak’s core photography business, which relies on selling film and development processes. Indeed, at this point in time, the photographic business accounts for about 90 percent of Kodak’s $14 billion in revenues. Fisher, though, has painted a vision of the company as a global digital imaging leader. With digital imaging technology it will eventually be possible for consumers to take pictures, crop them, print them, and send them electronically. Fisher, who has a PhD in applied mathematics, believes the photographic business will be important for years to come, but unless Kodak assumes leadership in the area of digital images, the company will eventually become technologically obsolete. Despite his view that digital imaging technology will be an important part of Kodak’s future, Fisher believes that Kodak’s photographic business also has significant growth potential. He considers expansion in international markets to be particularly important. For example, he wants the company to do better in the fast-growing economies of Asia, where Kodak trails its archrival Fuji Photo. There are also major markets in Russia, India, and Brazil that offer vast potential, but have barely been tapped by Kodak. Within the United States, Kodak has been quietly growing its share of the wholesale photofinishing market through its Qualex subsidiary, which handles most of the photofinishing for large retailers, such as Wal-Mart and Kmart. This approach will likely be expanded internationally as