Eastman Kodak analysis Essay

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At your request, I have compiled information on Eastman Kodak Co., so that you may come to an investment decision. The report will consider the company’s background (including Kodak’s areas of production), a past obstacle Kodak has had to face and overcome, and a financial snapshot of Kodak over the past five years. BACKGROUND Originally founded in 1880 by George Eastman, the Eastman Kodak company now stands as a leader in the infoimaging industry. Infoimaging is a $385 billion industry that consists of using traditional and digital film to allow people to capture and deliver images through cameras, computers, and the media. Currently under the direction of Chairman and CEO Daniel A. Carp, Eastman Kodak is divided into three major areas…show more content…
Since the formation of Kodak, the company has remained the world’s leading film provider with virtually no competitors. That is until the arrival of Fuji Photo Film, which now surpasses Kodak in earnings per share and is viewed as the industries number two. OBSTACLE While Eastman Kodak has remained an industry leader in the sales of film for photo-imaging, over the past five years Kodak has underestimated the demand for digital cameras. Digital cameras require no film whatsoever and with Kodak’s main line of production being film Kodak has suffered great losses in net profit. Just in 2004 Camera film sales have been falling even than projected. The Photo Marketing Association predicted a six percent drop in film sales and Kodak projected an even more dismal 10-12 percent drop in film sales. The actual drop in sales reached an unforeseen 18%. In 2003 digital camera sales were greater than traditional film camera sales for the first time. To account for their miscalculation in film sales, Kodak is undergoing a massive digitally based shift. Kodak plans on building a stronger base in its consumer, medical, and profession imaging products. However, this shift does not come without a price tag. Kodak’s projected spending could reach as much as $3 billion in future investments to aid the shift. With these investments Kodak claims a tremendous turnaround in revenue. Kodak anticipates reaching $16 billion in revenue by 2006 and $20 billion by 2010. To pay

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