Eastman Kodak Company Profile

Eastman Kodak Company (Kodak) is engaged primarily in developing, manufacturing and marketing traditional and digital imaging products, services and solutions for consumers, professionals, healthcare providers, the entertainment industry and other commercial customers. The Company is a major participant in the "info imaging" industry, which is composed of devices (digital cameras and personal data assistants), infrastructure (online networks and delivery systems for images) and services and media (software, film and paper enabling people to access, analyze and print images). Kodak uses its technology, market reach and a host of industry partnerships to provide products and services for customers that need the information-rich content that images contain. (from nyse.com)

George Eastman, founder of Eastman Kodak, relied on some basic principles for his business:
(Taken from Kodak History.)

Mass production at low cost
International distribution
Extensive advertising
Focus on the customer
Foster growth and development through continuing research
Treat employees in a fair, self-respecting way
Reinvest profits to build and extend the business

One way in which Kodak has sought to expand its presence throughout the imaging industry is through a program called Kodak Ventures Group (Kodak Ventures Group). In this program Kodak seeks to invest in "early-stage companies" that have new or innovative takes on advancing technology with a "high growth potential" (Quotes taken from Kodak Ventures Group webpage). Kodak recognizes that there are many possibilities for developing ideas that sometimes lack only in funding or other resources. The companies that Kodak seeks to help may not even be directly related to its photo or other imaging divisions. But when working in conjunction with each other, these different technologies can have a very strong synergy which is defined as "the whole being greater than the sum of its parts." (Gerhard) (Also see the definition provided by Techweb.com.)

The Kodak logo is one of the most recognizable in the world. George Eastman recognized that photography could transcend any existing language and cultural barriers. His ardent pursuit of international marketing has led to a globalization of Kodak products and services. Subsidiaries (ex. www.cinesite.com, www.encad.com ) are all marketed under the Kodak name. The subsidiaries listed here range in products from large format graphics printers to digital effects for motion picture productions. Eastman Kodak has achieved name and product recognition that rivals that of any other large corporation in the world.

Kodak has also formed partnerships with some of its biggest competitors. Nikon and Kodak have worked together to create a film processor that "dry" develops analog film into a digital format. This is an efficient way to maximize the quality of analog film shot on analog SLR cameras. Kodak has also partnered with America Online to provide the popular "You've got pictures" service that allows internet users a quick and efficient way to instantly send downloaded pictures to anyone that is connected to the internet. A Kodak owned online photo service, www.ofoto.com, provides an online resource for people to order or send photo related products through the users computer. The Kodak EasyShare system (EasyShare) is a digital camera that comes with its own dock for downloading pictures directly to a computer.

Kodak has also branched out from the traditional consumer photo market. Kodak has long been a leader in producing the raw film used in the motion picture and television industry (Academy Awards). More recently Kodak has produced the cameras and technology, including digital accessories (Kodak Accessories), for a strictly digital format. Kodak's website offers an excellent description of how digital photographs are created (Pixels to Pictures). In December of 2002, Cinesite, a division of Eastman Kodak was recognized for its digital effects and production in association with HBO's production "Band of Brothers".

Despite all of these ventures into various industries, Eastman Kodak has always remembered the people that have helped it achieve its global success, the consumer and amateur photographer. Even today as it seeks to expand in the high end of the technology industry, Kodak spends much of its time on developing convenient, affordable imaging systems for the average consumer.

Eastman Kodak has been one of the most consistent companies of the last 100 years and they continue to remain stable to this day. Like most other companies, Kodak has gone through an economic slump in the last 2-3 years. Despite that however, Kodak continues to look to the future and seeks for new ways to grow and develop. It is a financially sound company due to its willingness to adapt to changes in the marketplace and ability to keep pace with its competition. Kodak's expansion into all areas of imaging and its program of investing in new technologies ensures its place in the future of business.

The Eastman Kodak Company trades on the New York Stock Exchange with the ticker symbol EK and is listed in most financial pages as EKodak. Current stock prices and information can be found at: www.finance.yahoo.com.

The earliest photographs were actually glass plates that were covered with a wet, light sensitive, silver halide emulsion. These coated plates would then have to be exposed to light before the emulsion dried. It was a very expensive, time consuming process in which timing was everything to gain a proper photograph. Soon though, a dry emulsion was developed that allowed for proper storage of plates before their use. Still, photography at this point was available only to an elite few who either had the money or financial backing to pay for this very expensive new media. However, the push was on to develop a way for photography to be brought to the masses at a reasonable cost.

In the late 1870's, George Eastman, a high school drop out who at the time was working for a bank, had developed a machine that would coat glass plates with the photo sensitive emulsion. He traveled to London, which at the time "was the center of the photographic and business world", to try and patent his machine. He received the patent in London as well as an American patent. In 1880, Eastman and a fellow businessman named Henry Strong began commercially producing these "dry plates". The business did well enough that Eastman was able to leave his banking job and devote all of his time to the photo business. He spent much of his time in researching ways to reduce the cost and complexity of photography.

"In 1883, Eastman startled the trade with the announcement of film in
rolls, with the roll holder adaptable to nearly every plate camera on
the market. With the KODAK camera in 1888, he put down the foundation
for making photography available to everyone.

The KODAK camera, pre-loaded with enough film for 100 exposures, could
be easily carried and handheld during operation. It was priced at $25.
After exposure, the whole camera was returned to Rochester. There the
film was developed, prints were made and new film was inserted - all for
$10."

During the 1880's, charges of $25, and $10 were still a lot of money and kept photography as an "elite" hobby. Because of George Eastman's innovations and creativity, photography would soon go from only being available to professionals, to being available to amateurs as well.

From humble beginnings in the 1880's (left photo), to the present day (right photo), the company started by a high school drop-out has grown into an imaging company whose reach stretches across the globe. Eastman Kodak has stood by George Eastman's original business principles throughout its history. Kodak has been almost single-handedly responsible for bring affordable photography to the masses. Because of aggressive marketing and product development, the existence and use of photographic equipment is as commonplace in households throughout the world as many other technologies such as the television and the telephone.

Innovative thinking has also continued to make Kodak a relevant player in the imaging industry. Kodak had the foresight to see the impact of digital imaging and adapted to that change, all the while remembering the types of products that had made it so successful.

Daniel A. Carp, 53
Chairman, Chief Executive Officer,
& Chief Operating Officer
Annual Income: $4.5 million
Daniel A. Carp Biography

Robert Brust, 58
Chief Financial Officer,
& Executive Vice President.
Annual Income: $2 million
Robert Brust Biography

As technology has progressed from analog to digital, Kodak has been up to the task in conforming to these rapid changes. that could have been devastating for a company whose products were almost exclusively analog for the first century of their existence. Eastman Kodak has been actively researching ways to transmit quality digital, color images over wireless networks. The articles "The Challenge of Mobile Imaging", and "Wireless Pictures", describes the obstacles posed by transmitting images over wireless networks and the ways that researchers are overcoming those challenges. One of the companies that Kodak has partnered with is an independent spin-off company called Appairent Technologies.

Kodak is also a participant in trying to set up standards involving the use of digital cameras in the motion picture industry. It is hoped that these standards will eliminate any future problems that may arise within the industry ("Digital Cinema"). Kodak is also heavily involved with issues of digital compression in making motion pictures and television shows in a purely digital format ("Digital Motion", and "New Motion Film").

As technology moves forward at such a staggering pace, there is no doubt that Eastman Kodak will be at the forefront of change. With increased scientific exploration and medical research, the need for imaging will continue to increase as well. Think of the necessity for accurate, detailed imaging in the fields of oncology, or the use of CAT scans, or MRIs. This is especially evident in the use of non-invasive imaging in doing brain research as discussed at, Kodak Research & Development.

One way in which Kodak has sought to expand its presence throughout the imaging industry is through a program called Kodak Ventures Group. In this program Kodak seeks to invest in companies that have new or innovative takes on advancing technology. Kodak recognizes that there are many possibilities for developing ideas that sometimes lack only in funding or other resources. The companies that Kodak seeks to help may not even be directly related to their photo or other imaging divisions. But when working in conjunction with each other, these different technologies can have a very strong impact.

Kodak's primary competition throughout the years has come from other camera and film manufacturers. Recently, Kodak has partnered with some of its competitors in producing digitally compatible products. Kodak retains its stiff competition with the same companies but the battle has shifted from analog (film, photo paper, photo processing, and film developing chemicals), to digital imaging.

Eastman Kodak frequently publishes press releases as well as news articles and product announcements.