Kodak filed for bankruptcy protection on January 19, 212, which does not mean that Kodak no longer exists, so the company's website still exists. Bankruptcy is only a reorganization of its own business and assets. The traditional film business was abandoned in this bankruptcy reorganization, but its digital business still exists.
Kodak filed for bankruptcy for the following reasons:
1. Intense price competition in the market.
The fierce competition in the film market has increased the pressure on Kodak's operation. In the markets of Eastern Europe and developing countries, cheap film also poses a great threat to Kodak, because people with low income pay more attention to price than brand and quality. Kodak has implemented a series of price counter-attack strategies, which once played a role to some extent, but it still can't completely eliminate the bad influence brought by the price war.
2. The impact of digital imaging technology on traditional imaging technology.
High cost, heavy equipment and serious pollution are the problems that are difficult to solve in the production and printing of negatives and photographic papers, and the inconvenience caused by using negatives and photographic papers is that they are bulky, cannot be preserved permanently and are difficult to find.
3, the impact of the economic crisis
Since 27, Kodak has implemented the second strategic reorganization, and laid off 28, people, up to 5%. However, in 28, the financial crisis broke out, demand weakened and the market shrank. Its fourth quarterly report showed that Kodak lost $133 million, and its annual revenue declined for the third consecutive year. Kodak, which barely made a profit by selling assets, was suddenly returned to its original shape.
Extended information:
Rumors that Kodak is on the verge of bankruptcy have been going on. Since Kodak announced a major strategic transformation in September 23, its operation has been facing difficulties, and the huge losses in successive years have greatly reduced investor confidence.
in September, 23, Kodak announced a major strategic transformation, and its business focus shifted to digital, medical imaging and inkjet printers, trying to adapt to the situation and make changes. However, carl icahn, a famous investor, chose to withdraw his capital from Kodak in early 24, because he was not optimistic about Kodak's strategic transformation and thought that Kodak's business model was difficult to work. Icahn believes that the measures taken by Kodak are far from enough to reverse the situation, and it is too late.
as early as 23, because film sales began to shrink, the sales profit of Kodak's traditional imaging department dropped sharply from $14.3 billion in 2 to $4.18 billion, a decrease of 71%.
but since 25, Kodak has only made a profit for one year, and all the other years have lost money. In order to save operating costs, Kodak has laid off about 2% employees since 24, and the number of employees worldwide has decreased from 86, in 1998 to less than 2, by the end of 21.
while the house leaks are raining all night, the financial crisis keeps on when Kodak is in decline, and when the European financial crisis breaks out again, it may not last.