rofitable. Late to the digital film revolution, Kodak has recently taken drastic action to reverse its current situation. Kodak’s situation stems from its conventional film production processes that are becoming rapidly outmoded in light of digital film technologies. Kodak has plans to lay off 1/5th of its total workforce, or 15,000 employees by 2007 (Kodak PAG1). The firm’s new strategy shifts its focus from the film and paper that have been responsible for the majority of its revenues and profits up to now to the film-less digital market. Technology has crippled the company’s traditional source of revenues, with sales of conventional film cameras down 15% in the U.S. last year alone (Kodak PAG1).
Situations like IBM’s and Kodak’s put additional pressure on management for sound leade
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