Essay on Polaroid

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Polaroid In March 1996, Ralph Norwood, treasurer of Polaroid Corporation, was asked to consider refinancing proposals from investment bankers of $150 million of debt due to mature in January 1997. Gary DiCamillo, newly appointed CEO of the firm,in reaction to the company's lagging share price, had set forth a new plan to agressively expoit the existing Polaroid brand, introduce product extensions, and enter new emerging markets. Before Norwood can choose a refinancing proposal, he must consider the funding needs of DiCamillo's new corporate strategy and the capital structure which would provide the lowest cost of capital and most financial flexibility. Norwood also needed to consider the maturity structure of debt. COMPANY PROFILE…show more content…
With these trends in sales growth, the mix of U.S. to international sales had actually reversed itself, making overseas sales the major source of company revenues. Structure of the Instant Photograhpy Industry The patents held by Polaroid insulated the company from any major competitive threat domestically. In 1976, the Eastman Kodak Company introduced an instant camera and film product to compete with Polaroid. In response, Polaroid sued Kodak and won $900 million in the largest patent judgement ever awarded. Internationally, Polaroid only faced one other competitor: Fuji. It produced a similar instant film camera that it marketed in Europe and Japan. Yet even in Japan, Polaroid dominated the market. By the 1990s, the instant film camera market was reaching maturity and companies began turning to new technologies. Digital photography became the new battleground for marketshare. In this arena, Polaroid faced stiff competition from several "deep-pocket" technology companies as Xerox, 3M, and Sony. Polaroid's Relative Strengths and Weaknesses Polaroid's innovation, determination and focus enabled the company to not only create the instant film camera industry, but also dominate it by continually building upon their technology. Unfortunately, the company's narrow focus on instant film photography may have been responsible for the company's late entry into the digital camera market. Likewise the company's efforts to develop instant motion

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