February 2, 2012

The downfall of KODAK

KODAK is one of the brand names from my childhood. Founded in 1892, KODAK became one of the leaders in the photography industry. They applied to the bankruptcy court in New York on 19 January, 2012. In the application the company said the move, which would include the sale of non-essential assets, which could include patents, is intended to bolster liquidity.

In a country having prominent universities educating renown managers and having so many successful giant companies, how can a company like KODAK find itself in such a situation? An excerpt from Internet: “…arrogance and stupidity and failure at a negligent degree caused them to go from 85,000 down to 5,000 employees. First Fuji Film began to outsell them on film then they didn’t enter the digital photography market until late in the race even though they had the technology before anyone else did but chose to shelf it.”

Irrespective of whether you have 85,000 or 85 employees today, if you don’t read your market correctly and do not utilize the technological developments, that is if your management is not prudent, then the future of your company doesn’t look very bright.

When we consider giving our services to a company, the future opportunities of the company and the team to realize them interest us more than how much profit or loss was made in the past. If the future of that company does not indicate a potential for growth, then we ask the company owner whether or not he/she is thinking of closing down the company. It may seem to be a hard decision. Sometimes giving up one’s company is a more realistic solution than creeping along and trying to find the light at the end of the tunnel.

Iff you’d like to view an advertisement of  KODAK from 1960, you can click here.

The oldie of the week: Marianne Faithfull – As tears go by (1965)

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