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For decades, Kodak thrived on a classic business model: sell lots of cameras at low prices in order to mark up profits on the inks, chemicals, and papers used for creating the prints. This strategy collapsed as the digital revolution and foreign competitors found a way to improve the technology at a cheaper price and at a much improved rate. As a result of these driving forces, Kodak no longer controls the photography business. That is the key issue that Kodak is facing. Is Kodak up for this challenge? Can Kodak successfully compete in the digital world?
Since January 2000, Kodak's revenues and net income have declined, its shares have dropped by 66 percent, and the company's S & P rating has dropped by 5 grades...
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