Eastman Kodak Company

1. Eastman Kodak Company Jessica Lo Calvin Ng Yvette Olmos Tiffany Taubodo Tuan Tieu Julie Xiong

2. Kodak’s History • The history of Kodak began in 1879 • George Eastman • Henry A. Strong • The world’s first Kodak camera was born in 1888 • “You press the button, we do the rest.” • “Share moments. Share life.”

3. Company Name Chronology • Eastman Dry Plate Company (1881) • Eastman Dry Plate Film Company (1884) • Eastman Company (1889) • Eastman Kodak Company of New York (1892) • Eastman Kodak Company of New Jersey (1901)

4. George Eastman’s Four Basic Business Principles • Mass production at low cost • International distribution • Extensive advertising • Focus on the customer

5. George Eastman’s Three Additional Policies • Foster growth and development through continuing research • Treat employees fairly and with respect • Reinvest profits to build and extend the business

6. 2002 Net sales= $12,835 million Stock price per share at year end= $35.04 Net earnings= $770 million Shareholders at end of year= 89,988 million 2003 Net sales= $13,317 million Stock price per share at year end= $25.67 Net earnings= $265 million Shareholders at end of year= 85,712 million Financial Highlights

7. Financial Highlights 2003 • Net sales increased by a tad bit • Net earnings decreased significantly • Stock prices dropped • Shareholders disappeared • Less employees in U.S and worldwide

8. Kodak’s Stock Price • As of 4/17/04, Kodak is selling their stocks at $25.35 per share • From previous close of the stock price, it rose $0.40 cents.

9. Today’s Competitors • Sony, Olympus, and Canon are all leaders of the digital cameras • Kodak falls short at fourth place • Kodak holds 14% of the market share

10. Single-Use Cameras • Kodak dominated the market share when the single-use 35mm cameras were still around in 2001 • Sony held 51% of the market share

11. International Service Locations • All of the Americas Region, the Latin America Region, Japan, the European Region, the Greater Asia Region, and the Middle East and Africa • Within these regions, Kodak exists all in the major cities

12. U.S. Major Headquarters • The four major headquarters in the U.S. Are located in -Windsor, Colorado -Atlanta, Georgia -Oakdale, Minnesota -Toronto, Ontario

13. Purchasing & Suppliers • Keykode equipment and software itself holds at least twenty-six suppliers from all over the world • Kodak purchases 3 main material • Imaging material manufacturing • chemicals, fuel and energy, and packaging supply • Equipment manufacturing • circuit boards, plastics and electronic components • Non Manufacturing goods and services • advertising, IT services, and travel/fleet

14. Kodak’s IT Department • Electronic Retrieval Workstations • Kodak i7300 Scanner • 2400 and 3000 DSV digital scanner/printer • IBM • Directly buying from IBM • Standardizing all hardware and installing a set of preinstalled software on all PCs • reduces on-site problem solving • saves $200 per person by help desk

15. Porter’s Competitive Forces Model • Market leader in traditional film • Main focus in manufacturing digital cameras and photo processing services • Imaging Industry • Entry barriers

16. Porter’s Competitive Forces Model Continue • Industry Demand for digital imaging equipment and services • Bargaining powers of buyers • Substitutes • Existing Competitor Threats

17. SWOT Analysis • Internal Strengths • Internal Weaknesses • External Opportunities • External Threats

18. Kodak’s Internal Strengths • Kodak Brand Name • Biggest Strength • “Kodak moment” • Kodak Image • Environmentally & socially conscientious • Website • Great detail of product features & uses

19. Kodak’s Internal Weaknesses • No E-Commerce • Being Innovative with IT • Acquiring without profitability • Expanding just for the sake of growth • Product offering • Need to narrow their focus

20. External opportunities • Camera phones • Kiosks • Cinema • Investment • Multi-Cultural marketing • Health care • Expansion

21. External Threats • Competitors • Sony • Canon • Olympus • Distinctive Industries • Healthcare • Professional and consumer photography • Government • Cinematography • Docking and imaging

22. SWOT Analysis Conclusion • Based on the SWOT analysis, Kodak may improve by • Investing in selective industries • Improvements in products and services • Brand name recognition in digital industry • Innovation

23. Competitive Position • Cost Leadership • Producing products and services at a low cost • Supplying photography tools to a large number of people • Maintaining a cost advantage over competitors • Differentiation • Growth

24. Differentiation Strategy • Infoimaging • Form of technology that uses image science and IT • Tool for developing new products and services • Improves communication and commerce • $385B industry

25. Differentiation Strategy cont. • Industry Expansion • Consumer and Professional Photography • Health, Entertainment, Printing, Publishing • Document Imaging • Investment in Research & Development • Product Development • Technology Research • Imaging Research

26. Growth Strategy • Switching from traditional film to digital • Entering new markets • Earnings Growth • Increase Profits and Productivity • Cutting Costs and Dividends • Acquisitions • $2-3B acquisition strategy • Acquired at least six leading companies in several industries