OldNavySailor

Bringing Kodak into Focus

Ex-Daker is correct in his assessment of Kodak Park (renamed Eastman Business Park) environmental liabilities.

Despite successful marketing as a photographic company, Kodak made its money in photofinishing chemicals provided to dealers around the world. Photo chemical consumption was the real cash generator, not just camera film sales. The company also manufactured and sold specialty chemicals not related to photography that was another big money maker.

When George Fisher left Motorola and was contracted by Kodak as its CEO, his strategy was to establish the foundation for digital photography and to gradually abandon the chemical business. Fisher's vision for the new burgeoning electronic image capture business was short sighted as he did not take into consideration the potential competition that would emerge from the multitude of electronic related companies who also saw the marketing and sales potential of the new photographic industry. Kodak simply could not compete against smaller companies that turned out products and services faster from conception to final delivery to the consumer.

In hindsight, Kodak should have stayed in the chemical business because it already had a fully compliant national program to address the environmental issues dealing with chemical manufacture, distribution and disposal. It employed some of the most innovative chemists in industry and had a distribution network that successfully competed with larger chemical corporations.

It is very difficult to start up a chemical company compared to what it takes to start up an electronics company. Kodak would be thriving today if it wasn't for the board of directors at that time who did not understand the underlying value of Kodak's chemical manufacturing business.


On Jul 15 11:52 AM Rod wrote:

> Are you sure about the chemicals? Eastman Chemical was spun off
> many years ago. Check ticker symbol EMN, Eastman Chemical Company.
>