Most Analysts Hold Belief that Kodak Will Not Survive Forces of Market
Kodak, even in bankruptcy, holds some strengths to be envied: a golden brand, with technology firepower that embraces
a rich array of photo patents, plus over $4 billion dollars in annual digital cameras, inks and printer sales..
However all that may fall short in reviving its declining fortunes through a Chapter 11 remake.
Kodak has arrived at an economic crossroad: It could take the path of fallen Circit City and Montgomery Ward , which never revived from a long period of decline. Or Kodak could thrive after bankruptcy, just as General Motors did.
Not one of the experts on restructuring the Associated Press interviewed seemed too optimistic about Kodak making a robust comeback. Selling off selected lines of patents and business and deciding on the right wagers on a limited quantity of new technology goods just might permit the Eastman Kodak Company to stay alive, several experts concurred. However none envisioned a road back to anything even resembling to the grandeur era of the earlier photography giant.
Kodak as we knew it is unequivocally history. The only hope for the company is to remake itself as a company of intellectual property. Although it would need to put the patents it holds on the block first and decide whether it would sell them based upon what is offered, or hold on to them and attempt to redo the company during a number of years.
Kodak has only announced that it has named Dominic DiNapoli, a vice president with FTI Consulting. as the head restructuring officer to take charge up the effort:
A few experts believe the company will get by after it reduces debt by cutting employee benefits and pension costs through bankruptcy, then eliminates its least valuable product lines.
Only a significantly leaner, more targeted Kodak will survive. Kodak should probably return to basics and concentrate on only one or two product lines which are self-sustaining.
The main hope lies in it;s digital businesses that last year generating around $4.5 billion of revenue, an amount Kodak alleged accounted for approximately 75 percent of it's total sales, which included consumer devices like printers, self-service photography kiosks, and high-capacity document scanners.
If they are able to take their current products and improve upon them and reduce the costs cheaper, there is every reason to believe the company can emerge with a stronger balance sheet,. "It will only be just a shell of the former company, although I don't believe they will need to liquidate.
A terrific book,
Kodak Cameras: The First Hundred Years -
by Brian Coe. The information and accuracy about the cameras of Kodak is the best around! It's a valuable resource about the Kodak camera history. Practically all the Kodak cameras ever made, throughout the world, are catalog along with film types, manufacturing, years of production etc, it's information with terrific images. it's is a quality book. I continue to use it as a primary resource for creating anything regarding Kodak Cameras. This in not a book for finding values or the worth of Kodak cameras, however a book for discovering the factual history.
Related Articles
|