Japan Technology

"Success is never a destination - it is a journey" (Satenig St. Marie) and there is a company that understands that journey. Kodak has been around for many years providing families around the world with innovative and high quality products. Many homes worldwide recognize and associate film with the Kodak name. "The company ranks as a premier multinational corporation, with a brand recognized in virtually every country around the world" (Kodak History). However, the changes in technology create a dilemma for Kodak. The company's considerations for digital imaging will change its long history with 35mm film production. Will the shift from 35mm to digital imaging affect Kodak's successful journey? To find an answer to this question, we must analyze Kodak from an economic perspective. An economic perspective views many different factors and determines whether it is in Kodak's best interest to pursue digital imaging, will give enough evidence to support a rational decision. The era of digital photography is well under way. After surpassing sales of film cameras in 2003, the demand for digital devices in the US and other developed markets continues to swell. According to market research firm IDC, during the first nine months of 2004, "U.S. shipments of digital still cameras grew by close to 50%, vs. the same period in 2003. Conversely, we think U.S. shipments of traditional film cameras declined at a double-digit rate in 2004, and we expect a similar drop in 2005" (Stice). With the technology currently available, digital photography holds several major advantages over traditional film photography. The benefits can be categorized by cost, time, and versatility (Bhatia). Kodak wisely restructured its manufacturing to remain a strong competitor in the industry's market demand for traditional 35mm film. Film cameras are slowly declining in existing markets. Kodak takes full advantage of the situation by shifting its core focus to the increasingly demanded

References: Analysis & Commentary/Online Extra, "What It "Boils Down To" For Kodak", (www.businessweek.com), 24 Nov. 2003, 2005. Bhatia, Ashish, MD, "Digital Imaging", (www.emedicine.com), April 29, 2003, 2005 http://www.emedicine.com/derm/topic561.htm Dobbin, Ben. "Kodak Moves Up in the Digital Camera Market." (http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:EK&Feed=AP&Date =20050202&ID=4222125) February 2, 2005. Eastman Kodak Company, "Kodak to Accelerate 35mm Consumer Film Effort in Emerging Markets", (www.kodak.com), 2004, 2005 Investor Guide, "Eastman Kodak" (www.investorguide.com), 2004, 2005 Investor Meeting. (http://media.corporate-ir.net/media_files/irol/11/115911/ek_012505a.pdf), Jan 26, 2005, 2005 Kodak, "Annual Reports", (http://phx.corporateir.net/phoenix.zhtml?c=115911&p=irol- reportsannual), 2003-2000, 2005 Kodak, "Easy Share", (www.kodak.com), 2005, 2005 Kodak Research and Development, "Digital Image Processing", (www.kodak.com), 2005, 2005 http://www.kodak.com/US/en/corp/researchDevelopment/whatWeDo/imaging/digitalIma geProcessing.shtml. Meek, Dan., "Global Manufacturing and Logistics" (http://media.corporate- ir.net/media_files/IROL/11/115911/global1.pdf), Oct 29, 2004, 2005 Reuters, "Kodak to embark on new restructuring – analysts", (www.itmatters.com), January 23- 24, 2004, 2005 Stice, Richard CFA, "Kodak 's Many Negatives", (www.businessweek.com), January 7, 2005, 2005 St Salkever, Alex, "Kodak, Fuji...Sandisk?" (http://www.businessweek.com), July 13, 2004, 2005 http://www.businessweek.com/technology/content/jul2004/tc20040713_8685_tc055.h tm