Eastman Kodak (Kodak) is the worldÆs 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 companyÆs 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 worldÆs largest market for photographic products, generating 46.3% of global revenues (Global 3). Kodak, with 20.2% of the marketÆs revenue, is the leading global photographic company (Global 3).
KodakÆs increase in revenues is accounted fro by sales growth across all of the companyÆs business segments, but these earnings were offset from the increase in research and development costs due to digital technologies (Profile 1). In 2003, Kodak organized its business into four segments: 1) Photography, 2) Health Imaging, 3) Commercial Imaging, and 4) All other (Profile 1). The photography industry was best categorized as being in the ômature stageö of the business lifecycle, prior to the advent of digital technologies.
Digital technologies have revolutionized both photography and the global photographic industry. Once a mature company in a mature
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