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Kodak Case

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Introduction Eastman Kodak Company, commonly known as Kodak is an American multinational imaging and photographic equipment, materials and services company headquartered in Rochester, New York, United States. It was founded by George Eastman in 1889. Kodak is best known for photographic film products. During most of the 20th century Kodak held a dominant position in this sector. In fact, Eastman Kodak Co. is one of the dominant market share holders within the camera and other photography-related industries. Kodak pioneered amateur photography and is often credited for the invention of roll film and the first camera. The markets for color film and color photofinishing in 1954 were controlled by Kodak. It had over 90% of the amateur color …show more content…

Question 5: What risks are associated with terminating the decrees? More specifically, what actions might Kodak take that would hurt competition or unfairly hurt competitors? Terminating the decrees will definitely have some negative impacts and can seriously hurt the competition. It will provide Kodak with many relatively cheap ways to exclude competitors, such as introducing various price reductions and discounts, which the company can afford due to high sales volumes and profit margins. However, the same offers will be too expensive for the rivals, which might drive some of them out of business and only increase Kodak’s market share. Termination of the 1954 decree will again allow Kodak to bundle the sale of its film to photofinishing, as it did before and will involve some serious risks as well. As it has been admitted by the company, one of its main goals is improving its bargaining position with retailers. Since Kodak already enjoys market power over the film it sells to retailers, the termination of the decree will only strengthen its film monopoly and make it even more challenging for the rivals to compete. Thus, it is unlikely that terminating the decrees and allowing bundles will benefit the competition in any way. Question 6: It was reported that Kodak filed for bankruptcy protection on January 2012. Please provide your comments on the failure of Kodak. If you were CEO of this company, what would you transform and reorganize in the company

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