Industry Opportunities & Threats

Eastman Kodak (Kodak) is the world's largest manufacturer of photographic film, and the company also manufactures cameras and additional electronic products. In fiscal year 2003, Kodak revenues amounted to $13.3 billion, representing a 3.8% increase in sales from the previous year (Eastman 4). Due to the high costs of research and development; however, the company's net income fell more than 65% from its fiscal year 2002 level (Eastman 4).

Kodak is a member of the global photography industry. In 2003, the global photographic products market grew by 2.3% and was valued at $45.6 billion (Global 3). As can be seen, Kodak owns nearly 1/3 of the global photographic products industry in sales volume. Because of the increase in popularity of digital photography, the global photographic sales market is expected to have a value of $51.1 billion, or a 12.3% increase over current value (Global 3). The leading source of revenue in the global photographic market is the digital camera sector, accounting for 36.1% of market revenues (Global 3). The U.S. is the world's largest market for photographic products, generating 46.3% of global revenues (Global 3). Kodak, with 20.2% of the market's revenue, is the leading global photographic company (Global 3).

Kodak's increase in revenues is accounted fro by sales growth across all of the company's business segments, but these earnings were offset from the increase in research and development costs due to

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