Kodak and Liquidity

Discussion in 'Industry News' started by CGW, Nov 3, 2011.

  1. CGW

    CGW Member

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  2. Thomas Bertilsson

    Thomas Bertilsson Subscriber

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    Inkjet printer business... Their strategy still baffles me. When did they stop inventing at Kodak? Why get on with something that is already a slowing consumer business? Who, other than fine art photographers, buy inkjet printers?
     
  3. jnanian

    jnanian Advertiser Advertiser

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  4. Thomas Bertilsson

    Thomas Bertilsson Subscriber

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    John,

    It does seem like they are actually starting to sell enough inkjet printers and ink to make a profit on them.

    For the sake of the employees, let's hope the trend continues.

    I still equate Kodak to being a company of innovation, and am secretly hoping they stretch wider than inkjet printers. If you want to capture future customers, you have to be on the cutting edge, not doing what everybody else is doing.

    - Thomas
     
  5. Markster

    Markster Member

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    They just need to made a Digi body for FD lenses, make it look and work like an A-1 but with an LCD back instead of a film door.


    (*hoping they're so desperate they're trolling the Internet for ideas...*)
     
  6. jp498

    jp498 Member

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    If they will indeed put their eggs in the inkjet basket, they are slowly doomed. I hate to say it. I hope they spin off the film business before they implode.

    Young people don't print photos, except to give to their unhooked grandparents or to hang on a wall. It's more and more a niche business (like film) and less mass market.

    If they don't implode, they'll shrink and some creative lawyer-investors will come buy Kodak for the patents and kill off everything else.
     
  7. daleeman

    daleeman Subscriber

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    This is 100% true.
    Railroads killed themselves because they thought they were in the railroad business instead of the transportation business. The USPS is slowly bleeding to death because of the unions, retirements and everything but they still think they are in the letter business not the communication business.

    Kodak is in the image business and the quoted fact above means printers will go the way of the typewriters, they need to be more visionary about being in the image business.

    They are selling everything they own it seems, all I. property rights are spinning out the door to keep them afloat and the future investors will not want to invest in film, so it will fade faster and faster. I believe if you like Kodak film and paper, buy it and freeze it now.
     
  8. MDR

    MDR Member

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    I've heard that kodak inkjet printers are quiet good and only cost a fraction of their competitors products.

    Domink
     
  9. Dave in Kansas

    Dave in Kansas Member

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    Very true about young people not printing, but it's not just young people. My wife took a trip earlier this year to visit her parents and relatives, something she only does about every 5 years, and she took a lot of digital pictures. Will she print them? I even had an offer from Kodak Gallery for 100 free prints that expired on Oct. 31. Did she take advantage of that? NO. Just wait for the hard drive and backup drive to fail.

    Dave
     
  10. CGW

    CGW Member

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    Costco warehouses in my area often do 4x6 prints for .06 and see only a slight uptick in traffic during the specials.
     
  11. jnanian

    jnanian Advertiser Advertiser

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    we onlyknow a fraction of the things they are working on
    and they don't have all their eggs in the ink business.
    their printers are all in one, fax, copier, scanner, printer, and work amazingly well
    from all reports. ( i wish i had one ! ) i just hope their other " ideas/products" make it to market before
    the "fire cupper" is done, and they fall to pieces.
     
  12. nickrapak

    nickrapak Member

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    The railroad analogy is an interesting one. Back in the early 70s, all major railroads were facing bankruptcy (and most in the northeast did declare) because they were still operating in the same way that they did when the railroad was the only choice for transportation. However, after a major restructuring in the 1980s, railroad traffic has grown as the railroads realize that they are now not always at odds with trucking, but they can provide service in tandem with trucking to provide benefits to the customer. Just change "railroads" to film manufacturers and "trucks" to digital, and the parallels become clear.
     
  13. dnjl

    dnjl Member

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  15. Tom Kershaw

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    One of the best reports on Kodak I've seen in the mainstream media, allowing Robert Shanebrook to get a plug in for his book; a shame the piece couldn't be longer.

    Tom
     
  16. CGW

    CGW Member

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  17. Aristophanes

    Aristophanes Member

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    An inability to find a substitute revenue stream to replace the absolute decline of film. This despite having pioneered digital imaging. The wrong people made the wrong decisions with shareholder money. Sad. Seen before, though.
     
  18. keithwms

    keithwms Member

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    Oh about two decades ago.

    The thing is, their low-cost inkjet idea would be a great one... in the 1990s. And that's around when the seemed to start falling behind the curve. Somehow Kodak's research management didn't notice that the consumer innovations sector moves waaaay faster now. Publically-traded companies need to show a lot more long-term vision. If Apple doesn't bring out a shiny new product every other quarter, people think the company is tanking. Long gone are the days when a company like Polaroid could bring out an innovation and then count on it for uncontested revenue for a decade or two.

    By and large, the consumer sector has moved from must-haves to want-to-haves. And Kodak is stuck in the must-haves. So they have been completely missing the boat on American consumer trends for, oh, at least a decade.

    John, its true that we don't know all the things Kodak was working on, and that is precisely the problem. You cannot raise capital (sell shares and bonds) when nobody has a clue what your vision is. And if the vision is merely catch-up - make the same products less expensive- then that isn't an exciting enough vision to bring in more investment. For example, if Kodak were making heads up night-vision displays for cars something like that, they'd probably be making a killing. Land would have been working toward that kind of innovation in the 90s. I can name dozens of things like that which would be perfect for Kodak's brand. And they also need to go after and acquire new technologies and make them their own, that's the investment part that is also vital to a big company. But now, Kodak is (by all appearances) poking pathetically at ideas that have been around for a long time and already have somebody else's name on them.
     
    Last edited by a moderator: Nov 5, 2011
  19. MDR

    MDR Member

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    What a lot of people here seem to forget is that Kodak might be the big Guy in the Film World, but is in fact a dwarf compared to its competitors outside the film world. Sony, Nikon, Panasonic, Samsung, Canon are in fact huge companies Nikon's parent employs 3 Million people. And those companies not owned by huge corporations are owned by huge Banks and insurance companies. Kodak can't compete with the big digital guys simple because it doesn't have the money or the sugar daddy to help it. BTW there are some Family tie between Fuji and Nikon so even Fuji is in reality the more powerful company. Furthremore Kodak constantly invents things but nobody takes them serious because they don't have the political and monetary clout to make people use them unlike some other companies.

    Dominik

    Long live Kodak, long live film
     
  20. fstop

    fstop Member

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    The ship hit an iceberg. It wasn't a design fault or poor metallurgy, it hit a an iceberg.It was not designed as an icebreaker.

    Kodunk sunk because of poor investment choices in markets they had no business venturing into.They also fell into an old trap and stopped advertising the virtues of film photography.

    The Parable of the Hot Dog

    There was man who lived by the side of the road and he sold Hot Dogs. He was hard of hearing so he had no radio. He had trouble with his eyes so he read no newspapers, nor did he watch television. But he sold good Hot Dogs.

    He put signs on the highway telling how good they were. He stood on the side of the road and cried ""Buy a Hot Dog Mister?"" And the people bought. He increased his meat and bun orders. He bought a bigger stove to take care of his trade. He finally got his son home from college to help him.

    But then something happened......

    His son said, ""Father, haven''t you been reading the newspaper? There is a big depression on. The European situation is terrible, the domestic situation is worse. Everything is going to pot.""

    There upon the father thought, ""Well, my son''s been to college, he reads the newspapers, he listens to the radio, he watches the television and he ought to know."" So the father cut down on his meat and bun orders took down his advertising signs and no longer bother to stand out on the highway to sell Hot Dogs.

    And his Hot Dog sales fell almost overnight.

    ""You''re right son,"" the father said to the boy. We certainly are in the middle of a great depression.""
     
  21. Ken Nadvornick

    Ken Nadvornick Subscriber

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    :D:D:D:D:D
     
  22. MaximusM3

    MaximusM3 Member

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    Sort of like "You get out what you put into it"..or .."Don't judge each day by the harvest you reap, but by the seeds that you plant"..

    Kodak stopped trying with film and planted the wrong seeds for everything else..(or almost everything)
     
  23. dslater

    dslater Member

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    The ship hit an iceberg because its rudder was too small to turn the ship quickly enough to avoid the iceberg. The rudder design was in fact faulty.
     
  24. lxdude

    lxdude Member

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    Actually poor metallurgy was a likely factor. The metal was more brittle than they thought, especially at the cold temperatures encountered.

    Not that that takes away from your point.
     
  25. Ken Nadvornick

    Ken Nadvornick Subscriber

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    The ship hit an iceberg because the officer of the deck ordered full-astern, thus compromising the ability of the rudder - regardless of its design - to perform its intended function. In order for a rudder to work correctly a ship must be moving forward. And in order for the rudder to be able to work correctly over the long term, the ship must be steered away from icebergs...

    Ken
     
  26. Aristophanes

    Aristophanes Member

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    A combination of factors doomed the Titanic. More importantly, serious design flaws and emergency systems doomed the passengers.

    Does that sound like a Kodak analogy?