Kodak's New Business Model - The UpStream

Kodak's New Business Model

posted Saturday Feb 11, 2012 by Scott Ertz

Kodak's New Business Model

Kodak, the company that invented the digital camera in 1975, will be phasing out production of digital cameras, pocket video cameras and digital photo frames before the middle of the year. The company filed Chapter 11 bankruptcy, completed the middle of January. While the company will still manufacture home printers and offer photo-printing and enterprise services, the company will start focusing on their brand-licensing program to generate revenue.

This is a major move for THE name in photography to be giving up on photography products. The decision will cost the company an initial $30 million, but they estimate that it will save the company $100 million annually. Of course, Kodak will continue to honor existing warranties for all products.

This won't be the only changes to the Kodak Corporation. Hit the break to find out the changes.

While Kodak is cutting a lot of its business, it will end up with a lot of overhead that will need to be handled. CEO Antonio Perez said during its bankruptcy filings,

Kodak is taking a significant step toward enabling our enterprise to complete its transformation. At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003.

After all of this knowledge, the stock price has sunk to a depressing $0.40. Hopefully, Kodak will be able to pull themselves out of this hole and return to a time of prosperity. I suppose, we will see.

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