Here is a posting I made nearly eight years ago, on photo.net, after the announcement that Kodak was haulting production of their MF digital backs. I stand by my predictions.

"Unfortunately I feel this is very indicative of Kodak's eventual failure in digital imaging, soon removal from the Dow and eventual bankruptcy. I admire a company that acts quickly to drop unprofitable products, but digital is the future and Kodak needs to suck-it-up (losses in digital imaging) for now. I know they’re trimming employees and buying other companies but that’s not enough.

Kodak has several problems that probably won't be solved:

First, its corporate culture is similar to many chemistry and Dow companies - slow acting (brought about by cash cow products with life cycles measured in decades not months like in the electronics industry), with too many layers of management (to protect the higher ups from bad decision making) that only results in poor communications and no or too late decision making. Most of its competitors have been in the electronics industry for a long time, and as such have been hardened by cut-throat competition and tight margins. Kodak management is afraid to rock-the-boat. With big salaries and millions of dollars in retirement waiting for top management they won’t take sufficient risks needed to compete.

Second, Kodak apparently isn’t marketing well as is evident by lesser products, poor product design, web site, and advertising. Marketing is the controlling force in any corporation. It should monitor the external environment and ensure a company’s products and services meet all customer expectations. I can’t think of one Kodak advertisement (they’re not memorable). I can’t think of one Kodak P&S digital product designator (product name) – I can name many of their competitors P&S cameras. Kodak’s flagship product the 14n has the word “Professional” written on it. If one has to say pro, guess what, it probably isn’t pro. Has any of Kodak’s products won any industrial design awards? Are Kodak’s cameras beautiful? Kodak’s poor marketing is brought about by years of cash cow products that haven’t required marketing – they sold themselves. Now that Kodak has to start marketing with the big boys it doesn’t have the expertise or the will to do so. Intel has stickers that go on PCs that indicate “Intel Inside” or “Pentium.” I know what processor is in my computer equipment. What’s so special about Kodak imagers? I don’t know the name of one of them. Does the average consumer know what imager is in their camera? Do consumers ask for cameras with Kodak imagers – I think not. Why not? Kodak should be very worried.

Finally, Kodak lacks the manufacturing expertise needed to compete. Making a spy satellite, big ticket optics or coated plastic/paper is not the same as having an electronics assembly line that makes thousands of cameras per day. As a result, Kodak doesn’t have the economies of scale necessary to compete in the camera industry. Its recent purchase of all of Chinon shows this. But, Chinon even with Kodak’s money won’t rocket into the same position as Canon. Kodak’s lack of a proper corporate culture and marketing will keep them back.

Here are my recommendations:

Trim many layers of management including most of the fat at the top of the company. 99% of those with chemistry degrees should be gone.

Move corporate headquarters from Rochistan to Silicon Valley where the electronics expertise is, an environment of high competition exists and the weather is good. Not too many good people in the electronics industry are going to move to NY when California is so attractive in comparison. This will also help Kodak get a new attitude about what kind of company they are.

Hire an Italian design studio to design your consumer products – they should look like the Ferraris of the camera world.

Higher a new VP of Marketing (or get rid of whom ever is hampering this individual) and start correcting the above mentioned issues. When a consumer asks for a camera they should demand one with the “Kodak Digital” mark on it. The consumer should be trained in such a way that any camera without “Kodak Inside” is unacceptable.

Stop all analog R&D and keep enough chemists to run the analog factories.

I could go on and on."