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Article 1 Kodak: A Parable of American Competitiveness Published: February 6, 2012 Author: Dina Gerdeman Summary:In this article author

says that when the American companies move in overseas for starting their operations because of the cheap labor costs and manufacturing, they take risks of moving their expertise, innovation for the new growth opportunities which are the out of reach from them. The author takes the example of Eastman Kodak. This company developed the first digital camera in 1975. This is 120 years old company who has faced the bankruptcy protection which is filed against him in January. The author tells in this article that HBS Professor of management practice Willy C. Shih served as the president of Kodaks digital and applied business in the 21st century. Willy C. Shih visited the company and realized that all the Kodaks products like camera lenses, shutters, electronic screen displays wave manufactured away from the floor of factory in different cities of America. He also says that America had much digital Camera related technology than the Japan in the year earlier. Before the outsourcing the manufacturing operations, the assumption of US companies that they would not affect on the US companies competitive edge marketplace in the global. But the Shih says that their assumption is wrong and the fallout has been disastrous. The reason is that when US companies starting their operations, when they allow the production of high tech products like memory chips, television which are disappear from the local and they lose their expertise in their country for the production of new generation goods. Shih says that Americas also lead in manufacturing the rechargeable batteries business but this business slipped through his hands when the manufacturer starting their investment in that companies who are doing the outsourcing. He says, now Japanese filed the void in the rechargeable battery and audio products production. Today America doesnt have the capability of producing the rechargeable batteries due to the decision of industrial wither away. The author says in this article that the executive who defend the outsourcing, He argues that there is not enough for the US workers or the expertise that

they work in the same speed in the other countries. America generates more profit in home besides the other country outsourcing. In recently Apple started its manufacturing of products in America but today it produces its products overseas largely. A country like China is more able to done its job without watching the expense and time thats why China going to growing up in the global. Now all the notebook computers, cell phones and other devices are designed in Asia. The American domestic software company initially outsourced only simple projects like code writing to Indian firms which has more complex work like designing. The designing work in America is in dangerous stag. Shih says, this stage may be able to block American companies designing material like high tech products and experience. The author says that in the World War-2, America had a traditional of global leadership, they divided the different stages like in 1950s and 1960s, there is innovation in semiconductor and 1960s to 1980s, chip design, satellite communication and aeronautics. The high tech products were available only in America. This success is only due to the higher investment of the government in the mass production and science industry. During World War-2 people accept the success of America in science just because of the atom bomb, computer technology and radar etc. American government continued investing in the science through the 1990s but this investment going to falter in 2003 and then lower ever since. Shih says that if the government wants to compete on the industrial stage then it should investing more in the science although more number of people who are less convinced that the science can solve their problems but science is important for the care of the industry. He says, I hope we are not too late. Shih and HBS professor Gary P. Pisano studying that how other countries performing well in the high tech and science. They think that US should learn some lessons from other countries like China and Taiwan who proved themselves as a dominant player in electronic and technology.