Profile of Kodak: From Film To Digital Photography: Early History

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profile W90C54
March 2, 2010
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Profile of Kodak: From Film to Digital Photography
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The CEO of Eastman Kodak Company, Antonio Perez, has just received his company’s earnings report
through the third quarter of 2009. The numbers do not look good at all, considering the company’s pride
in its mission and history of innovation; Kodak was one of the original innovators in digital photography.
However, current financial results do not reflect this history. Earnings and the company’s stock value were
on the decline. What should he do?
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Early History
George Eastman founded the consumer photography industry in 1888 when he sold his first easy-to-use
camera with the slogan “You press the button, we do the rest.”1 This invention grew out of his frustration
with a camera before he went on a trip:
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The camera was as big as a microwave oven and needed a heavy tripod. And he carried a
tent so that he could spread photographic emulsion on glass plates before exposing them,
and develop the exposed plates before they dried out. There were chemicals, glass tanks,
a heavy plate holder, and a jug of water.2
Eastman wanted something more convenient. In April 1880, he produced and sold dry plates, which
replaced the cumbersome wet plates that were used to develop photographs.3 This was a major step in
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the growth of his small company, which began on the third floor of a building in Rochester, New York, to
the present-day multinational corporation Eastman Kodak.4 After much experimentation and reading, he
eventually came up with the scheme of creating photographs from a thin film of gelatin spread over paper.
This is the technology that allowed him, in his words, “to make the camera as convenient as the pencil.” His
products were not an overnight sensation, but they were a grand success:
In 1888 he introduced the first Kodak camera, a simple box-loaded camera with a
100-exposure roll of film that cost $25. That was hardly accessible to the masses at a time
when a laborer made $1.50 a day. But by 1896 he was making a pocket version that sold
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for $5. In 1900 he introduced the first in a long line of Brownie cameras. It sold for just
one dollar.5
Published by WDI Publishing, a division of the William Davidson Institute (WDI) at the University of Michigan.
©2010 Scott A. Moore. This profile was prepared by Professor Scott A. Moore of the Ross School of Business at the University of
Michigan.
This document is authorized for educator review use only by Mai Nguyen, Other (University not listed) until May 2022. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
Profile of Kodak: From Film to Digital Photography W90C54
Eastman later said: “When we started out with our scheme of film photography, we expected that
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everybody who used glass plates would take up films. But we found that the number which did so was
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relatively small. In order to make a large business we would have to reach the general public.”6
The Foundations of a Film Photography Giant
In 1903, its first full year as a publicly-owned company, Kodak reported net profits of $2.9 million.7 By
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1935, the largest Eastman manufacturing facility had 83 buildings spread out over more than 400 acres.8
That year, the company’s sales were $105.1 million with net profits of over $15.9 million.9 Kodak’s general
philosophy was to invent the processes it used, own as much of the supply chain as it could, and manufacture
the products it sold. By 1939, the company made “its own photographic paper, gelatin, and many of the
chemicals, and new sources of supply have been found … so that … the Company was not faced with the
danger of having the supply of any of its important materials interrupted.”10 In 1950, Kodak had many
lines of business related to the production and consumption of film-based still and motion photography:
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production of film, paper, and chemicals for military, medical, scientific, and industrial users; fibers, yarns,
plastics, and industrial chemicals; photographic equipment; optical goods; vacuum apparatus for distillation
processes; and microfilm and microfilm equipment.11
In order to maintain its growth rate, the company needed new products in the pipeline. As far back as
1886, Eastman had a full-time research scientist on his payroll. His company was one of the first in the US
to do so.12 One of the major creations of Kodak scientists was Kodachrome film. The benefit of this film was
its great color reproduction. It was, however, difficult to develop: “[T]he film must be treated after exposure
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by a very complicated chemical process.”13 This film was first used for color movies in 1935,14 and eventually
became the “dominant film for both professionals and amateurs for most of the 20th century.”15 Kodachrome
peaked in the 1960s and 1970s. It was so popular, and such a part of the American culture, that Paul Simon
released the song “Kodachrome” in 1973.16 It was improved for still photography and adapted to work for
home movie film, Super 8, in 1965.17 By 1985 Kodak had 80% of the US market share in the film business. 18
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Kodak’s research organization continually created new products and processes for existing and new
industries and applications. In 1950, an abbreviated list of its projects included: a new type of color film for
aerial defense usage; films for detecting atomic radiation; new materials for the recording of color business
documents; films and papers for copying x-ray pictures; a process for quickly making a temporary print of a
negative; several hundred new synthetic chemicals (adding to the company’s existing list of 3,000+); and
research into the growing field of television and its possible relationship to film.19 By 1955 Kodak scientists
had published a total of more than 1,800 scientific papers.20
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Not everything that Kodak’s scientists invented and its marketers sold worked out as planned. From
1982-1990,21 Kodak sold a series of disc-based cameras to create excitement about a new, convenient
product for consumers.22 These were not very successful.
The Early Years of Digital Photography
In 1969 George Smith and Willard Boyle at Bell Labs developed the first charge-coupled device (CCD),
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which became the basis for the digital sensor in most of today’s digital cameras.23 As early as its 1970 annual
report, Kodak indicated that “[s]pecific areas of ongoing interest include … the evolution of cameras that
combine the best of optics, mechanics, and electronics.”24 By 1975 Steve Sasson, an engineer at Kodak,
created the first working digital camera,25 an eight-pound 0.01 megapixel beast of a machine.26 Kodak
scientists were granted over 1,000 patents in digital photography by 2005.27
Because of this tremendous investment in research, Kodak was the technological leader in digital
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photography. In 1986, Kodak released the first megapixel sensor for sale.28 At this time the US market for
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digital photography equipment was not very large; in 1988 this market, for business customers, was $27.5
million.29 It was not clear how this market would grow or what the product was actually used for.30 It was
evident, by the late 1980s, that manufacturers in this industry sector wanted to create a complete image
management system, including cameras, scanners, image storage devices, image transmission devices, and
printers.31 Kodak’s strategy was also becoming clearer. K. Bradley Paxton, vice president of Kodak’s electronic
photography division, said, “Our intention is to supplement people’s imaging needs rather than displace
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conventional photographic systems.”32
Through the 1970s and 1980s, Kodak experienced tremendous growth. (See Table 1.) Between 1969 and
1988, Kodak added employees and increased sales and earnings in every segment.
Table 1:
Kodak financial data (in millions)
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1998 1978 1969
Segment Net Sales Earnings Net Sales Earnings Net Sales Earnings
Imaging 19,575 1,663 5,674 1,336 2,407 n/a
Chemicals 3,033 628 1,532 280 572 n/a
Health 3,691 647
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Other (265) (193) (232)
Consolidated 17,034 2,938 7,013 1,646 2,747 800
Net Earnings 1,397 902 401
# of Employees
Worldwide 145,300 124,800 110,700
US 87,900 79,600 67,000
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Source: Kodak Annual Reports 1969, 1978, and 1988
In 1988, Kodak had five key business sectors:33

• Photographic and consumer products: camera and motion-picture film for amateurs, hobbyists,
and professionals; cameras and video projectors; photofinishing systems and materials; batteries;
other related products
• Imaging technology for information management, enabling commercial printing and
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publishing; office automation; and government applications: copiers for business; printers for
business and consumers; microfilm; image storage and management systems; graphics arts
products; commercial printing technologies
• Industrial materials: plastics for many packaging, consumer, and industrial applications;
polyester staple fiber; acetate yarns; hundreds of chemicals
• Health: mainly Sterling Drug Inc. (prescription drugs, over-the-counter medicines, home and
personal care products)
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• Diversified technologies/life sciences: medical and dental diagnostic imaging; clinical chemistry
analysis system; biochemical manufacturing; specialty chemicals for research and industrial use.
However, Kodak had to learn how to approach and manage digital imaging technologies over the next
couple of decades.
Seeking Profits From Digital Technology
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Kodak’s newly elected CEO Kay Whitmore led the company’s first big foray into the consumer digital
photography business -- the Photo CD system. This product, introduced in late 1990, was a compact disc
specially formatted to hold up to 100 digital pictures; Kodak developed this technology in conjunction
with Phillips.34 At the time, people took photos on regular film and then developed them at special photo-
finishing labs that had the right equipment. This new technology scanned the negatives and transferred the
images to files on the CD. The images were high-resolution (18 megapixels) since they were captured on film
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and only later converted to digital. Other than the $20 processing fee, the consumer only had to purchase
a Photo CD player for around $500.35 The first player was sold in September 1992.36 This system was well
received in the industry; an external digital photography analyst stated that Photo CD was a “natural bridge
to the digital world of photography without film.”37
Also in late 1990, Kodak announced a set of software technologies for color management in desktop
publishing and printing. This software ensured that colors displayed on one printer and one computer were
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the same as those on another printer and computer. IBM, Hewlett-Packard, Apple, Next, Sun, and Autodesk
endorsed this technology.38 With this system, Kodak wanted to build another bridge between the world of
photography and the growing world of home and business computing.
In 1991, Kodak made another move to explore demand in the digital photography market when it
released the Nikon F3-based Kodak DCS with a 1.3 megapixel sensor. This consisted of a standard Nikon F3
camera attached to a digital back, which contained the Kodak sensor.39 This was “the best of available film
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camera technology… all for about $13,000.”40
Signs of Trouble
All was not going well for Kodak in its stronghold, the US consumer film market. Specifically, in 1990,
Americans took fewer pictures than in the previous year for the first time.41 By 1993, Kodak needed to focus
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its efforts on reducing costs because of its lagging revenues. As part of this strategy, it cut its investment
in digital photography ($1 billion to date) and placed its biggest bets on Photo CD. As predicted at that
time, “If the system catches on, Kodak could continue selling its high-margin film products for decades.”42
Kodak later conceded that the marketing was not well handled, since it pushed the technology toward home
consumers instead of companies, who were the more enthusiastic adopters.43
Nevertheless, Kodak did not appear worried about its position in the market. Christopher J. Steffen,
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the chief financial officer at Kodak in 1993, stated, “When you look at the strength of Kodak’s products, its
distribution system, and its quality reputation worldwide, this is a company strongly positioned to skip the
turnaround stage and go to a transformation.”44 It was, however, increasingly worried about its cost structure
and ability to move into new markets. In August 1993, CEO Whitmore, who had been with Kodak for 35 years,
was fired. The directors on the board from outside Kodak wanted his successor to focus more directly on costs,
especially those related to research and development. Kodak’s costs were more than twice the US industry
average (in terms of the ratio of R&D per total sales dollars) and had been increasing for the last five years.45
According to Robert Goizueta, one of the outside directors, “The ideal candidate would have a background in
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marketing, experience as a cost cutter and familiarity with international business. And that person … will be
expected within seven years to double Kodak’s profit, which was about $1 billion in 1992.”46
Cooperation
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Just three years after electing its previous CEO, Kodak got a new CEO from Motorola, George Fisher.47
Fisher led Kodak into alliances related to digital-imaging products with IBM, Hewlett-Packard, Sprint, and
Microsoft.48 “We’re entering a brave new world where we don’t have the capability to stand on our own.”49
As was described in 1999, he “began steering the company towards its current digitization strategy of using
digital technology to enhance, not replace, conventional film…. [He also] began investing heavily in China
and other emerging markets.”50
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Even in 1995, it was generally unknown whether the switch to digital imaging would take 30 years or 5
years. People knew that electronics prices would fall enough eventually to allow digital imaging to replace
film-based cameras, but many simply did not know when this would occur.51 The company was still heavily
committed to its US base of film photography — about 45% of its total revenue of $13.5 billion, and 75% of
profits, came from this market. At the same time all of its digital activities added up to around $500 million
in revenues with an accompanying loss.52 Unfortunately for the company, from 1985-95, its US market share
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in the film business dropped from 80% to about 70%.53
Kodak was looking for a way to build some excitement in the film photography industry. In early 1996,
Kodak, Fuji, Nikon, Canon, and Minolta jointly developed the Advanced Photo System (APS) at a cost of
more than $1 billion.54 Kodak was the lead developer for the film. This film-based system both made the film
easier to handle and allowed photos to be taken with different aspects (wider or narrower).55 This system was
targeted at users of 35mm cameras and video cameras, in hopes that they would buy new hardware and more
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film.56 “APS was billed as a bridge between traditional and digital photography. Each roll of film carries a
magnetic coating that records data--lighting conditions, for example—that helps processors improve picture
quality.”57 This was clearly a superior film-based photography system, but it did not catch on in the market.
Sales of APS-based cameras only passed 20% of film-based cameras in 2000.58 Sales dropped 40% in 2002
while sales of digital cameras increased by the same percentage.59 In 2004 Kodak announced that it was
stopping production of APS cameras.60 BusinessWeek concluded, “As a mass-market product for US consumers,
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APS may go down as one of the industry’s costliest fiascoes yet, right up there with [Kodak’s] Disc Cameras
and [Kodak’s] Photo CDs.”61
Committing to New Ways of Sharing Photographs
By 1997, Kodak was exploring the practices in consumer digital photography. Kodak had always been
at the center of this industry, and it was trying to figure out how it could remain that way. That year, Kodak
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installed 10,000 Image Magic Print Stations at stores and planned to install 20,000 more the following year.
“That way, relatives who live far away can go to an Image Magic station, use the Kodak Internet service to
call up an image on the Web, fiddle with it to their liking, and print it on the spot.”62 Kodak aimed to make
the PC unnecessary in the use of digital photography.
Willy Shih, vice president at Kodak, stated, “[T]he Kodak picture network will give consumers a new way
to access, share and store their pictures, one that is faster, more efficient, and permits sharing over distance
more easily than the existing method of selecting extra pictures from a double set of prints and mailing
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them.”63 Consumers accessed the network from home once they received their prints and a claim number.
The monthly fee was $4.95 and included storage of 100 pictures.64 Kodak predicted that by 2000 local
photofinishers would produce traditional prints and accompanying digital copies for all 75 billion photos
taken in the US. Kodak planned to sell online access to those photos for a small additional fee.65 CEO Fisher
predicted that “consumers will continue to take the majority of their snapshots using traditional film because
it will remain the lowest-cost and highest-quality method of taking pictures for the next decade.”66 He also
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dismissed the possibility that a home printer could replace the photo lab for creating physical images.67
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In 1997, Kodak made products for just about everything related to photos except for photo-quality home
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printers.68
Painful Steps Toward Digital
Regardless of its other missteps, Kodak was doing well in the digital camera market. In 1997 Kodak
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had a 25% share.69 This market share did not come with a proportional profit for the company. Fisher
announced a plan to cut 19,000 jobs in order to eliminate $1 billion in annual costs.70 The company cut
another 11,000 jobs by 2003.71 Kodak also began to contract out its manufacturing operations to lower-cost
Asian companies.72 Various technical and market forces came together in 1999 to drive the growth in digital
cameras, including the number of PCs in homes and businesses, pervasive Internet connectivity, awareness
of the technology, and general supporting online services.73
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Kodak still had some internal problems in accepting and understanding the market’s move to digital
technology. Carl Gustin, chief marketing officer for Kodak and former general manager of Kodak’s digital and
applied imaging division, said, “To make a new model work, the old model has to be broken. Today, digital
imaging doesn’t offer anything [better] besides sharing.”74
In 2000, Daniel Carp succeeded George Fisher as CEO.75 On the day the change was announced, both
men said that Kodak was “on track to meet its goal of eight to ten percent annual revenue growth by 2004,
much of it from the digitization strategy.”76 As can be seen in Figure 1, only sales from 2005 exceeded those
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from 1999, and by only 1.3%.
Figure 1
Sales From Continuing Operations
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Source: Kodak Annual Reports 1980-2008

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The world was changing rapidly. It was estimated that one-fifth of the 112 billion photos taken in 2002
worldwide were digital; in 1998, this fraction had been one-twentieth.77 By 2003, Kodak was one of the top
three sellers of digital cameras in the US, Europe, and China.78 For the first time, digital cameras outsold
film cameras in the US.79 Experts predicted that the end of film was near. In 2003, InfoTrends Research
Group forecasted that by 2008, “most consumers [would] purchase digital cameras rather than reloadable
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film cameras.80 Camera technology had progressed so far that three-megapixel cameras were the standard
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entry-level models.81
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While the digital camera market was exploding, the home printer market was also doing well. In 2003
BusinessWeek noted that “the [home printer] market continues to show robust growth, especially in lucrative
niches such as digital photography.”82 It added: “Despite the digitization of information, people continue to
print more and more pages. Market researcher IDC predicts that the number of pages printed will continue to
climb at least 6% annually, to 1.8 trillion by 2006.”83 Hewlett-Packard was a fierce competitor in this arena;
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HP was spending $1 billion every year on research and development related to printers.84
Figure 2
Kodak Financial Results
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The New World of Digital Photography
In mid-2005, Antonio Perez, a corporate vice president of HP, became CEO of Kodak. This was a big year
for Kodak in two other ways:
1. Kodak had more income from selling digital imaging than film-based photography for the
first time.85
2. It increased its market share from 21% in 2004 to 24.9% in 2005. Kodak was the top seller of
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digital cameras in the US.86
These were simply the latest and strongest indicators of how far the shift to digital had progressed.
Unfortunately for Kodak, revenue was not keeping up. Kodak’s sales from consumer digital imaging products
went from $3.98 billion in 2003 to $3.09 billion in 2008.87 Furthermore, in 2008 Forrester Research reported
that more than 60% of Americans owned a digital camera.88 A camera was no longer just a camera, it could
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also be a phone. Worldwide, mobile phone cameras outsold digital cameras beginning in the first half of
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2003, 25 million to 20 million.89 In 2004, this number had skyrocketed to 257 million camera phones sold.90
This growth did not slow. In 2007, the installed base of camera phones exceeded 1 billion.91
Table 2
Select Kodak Financial Data from 2006-0892
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2006 2007 2008
Segment Net Segment Assets Net Segment Assets Net Segment Assets
sales Profit/ sales Profit/ sales Profit/
loss loss loss
CDG 3,013 (206) 2,076 3,247 (17) 3,306 3,088 (177) 1,647
FPEG 4,254 319 4,374 3,632 281 2,739 2,987 196 2,563
GCG 3,287 70 3,406 3,413 104 3,879 3,334 31 2,190
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As can be seen in this table, in Perez’s first three full years as CEO, Kodak’s sales and profits were up at
times, but mostly down. It had three major business segments by this time:93
• Consumer Digital Imaging Group (CDG): This segment dealt with “digital still and video
cameras, digital devices such as picture frames, snapshot printers and related media, kiosks
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and related media, APEX drylab systems… consumer inkjet printing, Kodak Gallery, and imaging
sensors. … CDG also [included] the licensing activities related to the company’s intellectual
property in digital imaging products.”
• Film, Photofinishing, and Entertainment Group (FPEG): It encompassed “consumer and
professional film, one-time-use cameras, graphic arts film, aerial and industrial film, and
entertainment imaging products and services. In addition, this segment also [included] paper
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and output systems, and photofinishing services.”

• Graphic Communications Group (GCG): This segment served “a variety of customers in the
creative, in-plant, data center, commercial printing, packaging, newspaper, and digital service
bureau market segments with a range of software, media, and hardware products that [provided]
customers with a variety of solutions for prepress equipment, workflow software, analog and
digital printing, and document scanning.”
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The financial markets were not kind to Kodak’s stock at this time. It opened 2006 at $23.62 and closed
2008 at $6.08.
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Figure 3
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Eastman Kodak Stock
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Source: Google Finance weekly stock data (http://www.google.com/finance/historical?q=NYSE:EK&histperiod=weekly)
Losing in the Photographic Film Market
The way that consumers interacted with and saved their photographs had changed significantly. In
October 2009, Flickr — a Web site for uploading, storing, and sharing digital photographs — had 4 billion
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photos on it.94 In early 2010, this site was the #20 site on the Web for daily traffic.95
• In early 2010 over 2.5 billion photos were uploaded to Facebook every month.96
• “[M]illions of consumers who once kept prints of snapshots in a drawer are uploading them to
photo sites. Researcher IDC predicts the number of pages printed in the US will decline [in 2009]
for the first time, to 1.47 trillion from 1.5 trillion in 2008, and sees the trend continuing.”97
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Back in 1987, Americans bought 710 million rolls of film.98 The next year, seeing the future coming at
it, Kodak got out of the film processing business.99 In 2006, the number of rolls purchased dropped all the
way to 204 million.100 The end had also arrived for film cameras. In 2004, Kodak announced that it was no
longer going to sell reloadable 35mm film cameras in the US, Canada, and Europe.101 The final blow for film
enthusiasts at Kodak came just a few years later. In 2007, Kodak stopped making Super 8,102 and on June 22,
2009, Kodak stopped making its last variety of Kodachrome film.
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The Financial Situation
Eastman Kodak stock closed at $3.75 at the end of October 2009; the stock was at $77.50 in October
1998. As recently as the end of October 2007, the stock closed at $28.66. (See the stock price information
Figure 3 for more history.) Kodak released its quarterly 10-Q form at the end of October 2009. (See Table
3 for details.)
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Table 3
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Selected Financial Figures
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First 9 months of 2009 First 9 months of 2008
Net Profit Segment Net Profit Segment % change $ change

Sales (loss) from assets Sales (loss) from assets in net in segment
segment segment sales profits
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(loss)
CDG 1,407 (345) 1,151 2,130 (136) 1,647 -34% (209)
FPEG 1,668 106 2,125 2,335 157 2,563 -29% (51)
GCG 1,947 (78) 1,780 2,513 34 2,190 -23% (112)
Other 2 (10) 5 5 (13) 8 -60% 3
Consolidated 5,024 (327) 5,061 6,983 42 6,408 -28% (369)
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Source: Kodak 10-Q for period ended 9/30/09. Filed October 29, 2009
The numbers in this report reflected a harsh reality for the company. Sales were down in each segment.
The profit situation was worse in each major segment. Only one of these segments showed a profit; perhaps
not surprisingly, this was the segment responsible for selling film.
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Endnotes
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1
“History of Kodak.” Kodak website. Accessed 20 Feb. 2010. http://www.kodak.com:80/global/en/corp/historyOfKodak/
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historyIntro.jhtml.
2
“ George Eastman.” Kodak website. Accessed 20 Feb. 2010. http://www.kodak.com:80/global/en/corp/historyOfKodak/
eastmanTheMan.jhtml.
3
4
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5
“ As convenient as a pencil.” Forbes. 30 Nov. 1998. Accessed 20 Feb. 2010. http://www.forbes.com/
forbes/1998/1130/621200bs1.html.
6
7
Eastman Kodak Co. annual report for year ending 31 Dec. 1903. Page 3.
8
Thirty-third annual report of the Eastman Kodak Co. for the year ending 28 Dec. 1935. Page 2.
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9
10
Thirty-seventh annual report of the Eastman Kodak Co. for the year ending 30 Dec. 1939.. Page 31.
11
Eastman Kodak Co. annual report 1950. Page 3.
12
“1878-1929.” Kodak website. Accessed 20 Feb. 2010. http://www.kodak.com:80/global/en/corp/historyOfKodak/1878.jhtml.
13
14
Suddath, Claire. “Kodachrome.” Time. 23 June 2009. Accessed 13 Feb. 2010. http://www.time.com/time/arts/

article/0,8599,1906503,00.html.
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15

article/0,8599,1906503,00.html.
16
“Kodachrome (song),” Wikipedia. Accessed 13 Feb. 2010. http://en.wikipedia.org/wiki/Kodachrome_(song).
17

article/0,8599,1906503,00.html.
18
Nulty, Peter. “Digital imaging had better boom before Kodak film busts.” Fortune. 1 May 1995. Accessed 13 Feb. 2010. http://

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money.cnn.com/magazines/fortune/fortune_archive/1995/05/01/202483/index.htm.
19
Eastman Kodak Co. annual report 1950. Pages 24-25.
20
Eastman Kodak Co. annual report 1955. Page 15.
21
“History of Kodak Cameras.” Kodak. March 1999. Accessed 13 Feb. 2010. http://www.kodak.com/global/en/consumer/products/

techInfo/aa13/aa13.pdf.
22
“Kodak Disc 4000.” Photographic Age. Accessed 13 Feb. 2010. http://www.photographicage.com/content/issues/volume_01/

issue_08/collector_txt.htm.
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23
Amos, Jonathan. “Nobel honors ‘masters of light’.” BBC News. 6 Oct. 2009. Accessed 13 Feb. 2010. http://news.bbc.co.uk/2/

hi/8292372.stm.
24
Eastman Kodak Co. 1970 annual report. Page 3.
25
Dobbin, Ben. “Kodak engineer had revolutionary idea: The first digital camera.” Seattle Post-Intelligencer. 9 Sept. 2005. Accessed

13 Feb. 2010. http://www.seattlepi.com/business/240048_firstdigital09.html.

26
Dobbin, Ben. “Digital camera turns 30 – sort of.” MSNBC.com. 9 Sept. 2005. Accessed 20 Feb. 2010. http://www.msnbc.msn.

com/id/9261340/.
27
Dobbin, Ben. “Digital camera turns 30 – sort of.” MSNBC.com. 9 Sept. 2005. Accessed 20 Feb. 2010. http://www.msnbc.msn.

com/id/9261340/.
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28
Dunleavy, Dennis. “A bird’s view of history: The digital camera and the ever-changing landscape of photojournalism.” The Digital

Journalist. February 2006. Accessed 13 Feb. 2010. http://digitaljournalist.org/issue0602/dunleavy.html.

29
Graff, Gordon. “What’s new in filmless photography; instant snapshots for your TV screen.” The New York Times. 15 Jan. 1989.

Accessed 13 Feb. 2010. http://www.nytimes.com/1989/01/15/business/what-s-new-in-filmless-photography-instant-snapshots-

for-your-tv-screen.html.
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33
Eastman Kodak Co. 1988 annual report. Page 3.

34
Grundberg, Andy. “Pastimes; Camera.” The New York Times. 23 Sept. 1990. Accessed 13 Feb. 2010. http://www.nytimes.

com/1990/09/23/style/pastimes-camera.html.
35
Grundberg, Andy. “Pastimes; Camera.” The New York Times. 23 Sept. 1990. Accessed 13 Feb. 2010. http://www.nytimes.

com/1990/09/23/style/pastimes-camera.html.
36
Durniak, John. “First buyer of Photo CD gets 15 minutes of fame.” The New York Times. 27 Sept. 1992. Accessed 13 Feb. 2010.

http://www.nytimes.com/1992/09/27/style/camera-first-buyer-of-photo-cd-gets-15-minutes-of-fame.html.
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37
Durniak, John. “He’s seen the future and it’s digital.” The New York Times. 8 Nov. 1992. Accessed 13 Feb. 2010. http://www.

nytimes.com/1992/11/08/style/camera-he-s-seen-the-future-and-it-s-digital.html.
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Notes
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Established at the University of Michigan in 1992, the William Davidson Institute
(WDI) is an independent, non-profit research and educational organization focused on
providing private-sector solutions in emerging markets. Through a unique structure
that integrates research, field-based collaborations, education/training, publishing,
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and University of Michigan student opportunities, WDI creates long-term value for
academic institutions, partner organizations, and donor agencies active in emerging
markets. WDI also provides a forum for academics, policy makers, business leaders, and
development experts to enhance their understanding of these economies. WDI is one
of the few institutions of higher learning in the United States that is fully dedicated to
understanding, testing, and implementing actionable, private-sector business models
addressing the challenges and opportunities in emerging markets.
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The Foundations of a Film Photography Giant

The Early Years of Digital Photography

Source: Kodak Annual Reports 1969, 1978, and 1988

In 1988, Kodak had five key business sectors:33

Seeking Profits From Digital Technology

Committing to New Ways of Sharing Photographs

Painful Steps Toward Digital

Source: Kodak Annual Reports 1980-2008

Source: Kodak Annual Reports 1980-2008

The New World of Digital Photography

digital cameras in the US.86

and output systems, and photofinishing services.”

Losing in the Photographic Film Market

The Financial Situation

Net Profit Segment Net Profit Segment % change $ change

Consolidated 5,024 (327) 5,061 6,983 42 6,408 -28% (369)

13 Feb. 2010. http://www.seattlepi.com/business/240048_firstdigital09.html.

Journalist. February 2006. Accessed 13 Feb. 2010. http://digitaljournalist.org/issue0602/dunleavy.html.

Accessed 13 Feb. 2010. http://www.nytimes.com/1989/01/15/business/what-s-new-in-filmless-photography-instant-snapshots-

Accessed 13 Feb. 2010. http://www.nytimes.com/1989/01/15/business/what-s-new-in-filmless-photography-instant-snapshots-

Accessed 13 Feb. 2010. http://www.nytimes.com/1989/01/15/business/what-s-new-in-filmless-photography-instant-snapshots-

Accessed 13 Feb. 2010. http://www.nytimes.com/1995/11/25/business/photo-industry-strikes-back-new-cameras-and-film-to-

25 June 2003. Accessed 14 Feb. 2010. http://www.allbusiness.com/consumer-products/digital-cameras/5731892-1.html.

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