Kodak Restructuring

Shadow 2

A
Shadow 2

  • 0
  • 0
  • 0
Shadow 1

A
Shadow 1

  • 1
  • 0
  • 0
Darkroom c1972

A
Darkroom c1972

  • 1
  • 1
  • 0
Tōrō

H
Tōrō

  • 4
  • 0
  • 32

Recent Classifieds

Forum statistics

Threads
198,823
Messages
2,781,450
Members
99,718
Latest member
nesunoio
Recent bookmarks
0

tomalophicon

Member
Joined
Feb 7, 2010
Messages
1,568
Location
Canberra, AC
Format
Sub 35mm
Wow. So they are splitting the commercial film side of things from the consumer film and paper side of things. Interesting.
 

Klainmeister

Member
Joined
Jun 2, 2010
Messages
1,504
Location
Santa Fe, NM
Format
Medium Format
Yeah, I don't quite get the re-structuring after reading a few articles. It seems they are downsizing the consumer film by separating it from the commercial side. Maybe good news? Maybe bad?
 
Joined
Jul 1, 2008
Messages
5,462
Location
.
Format
Digital
A separate report has said that Kodak is actually eliminating its film group from the overall restructuring. This could mean that there will be a cut to manufacturing of film, but it is open to speculation, as analysts have pointed out.

The report is on ABC News.

The scenario with Kodak parallels in some respects the restructuring of Ford and GMH, both of which are seeking more and more money to continue in a market that has been crying out for change for years, but yet they persist in producing the big 6s (especially Ford) in a market that is now smaller car/SUV-driven. For Kodak, it should continue on its digital path and forget about film if it is ever to be profitable, especially with a swag of valuable patents. Not sure taking on Apple for infringement of patents is a good idea while on the cusp of Chapter 11 proceedings.
 

MDR

Member
Joined
Sep 1, 2006
Messages
1,402
Location
Austria
Format
Multi Format
Poisson du jour it's the digital part that seems to kill Kodak the only money Kodak makes is in the Film division. So I wouldn't think that killing off the film division and competing in the digital world with companies that are 10 to 20 times larger than Kodak is a very smart idea. Kodak has become a very small fish these days even Fuji is a lot bigger than Kodak. Kodak should act like a small fish innovate and find a niche market to survive competing with companies like Seiko/Epson Hewlett Packard and Sony isn't very smart. Kodak has already sold a large amount of its profitable patents so no money from
this side. Innovation and finding a niche not necessarily film could be in the digi realm but it has to be unique and a must have product imho the only thing that can save Kodak

Dominik
 

ntenny

Subscriber
Joined
Mar 5, 2008
Messages
2,477
Location
Portland, OR, USA
Format
Multi Format
For Kodak, it should continue on its digital path and forget about film if it is ever to be profitable

Seems like an odd prescription: The film unit is turning a profit already, and Kodak's record of finding profitable ways to adapt to digital technology is, um, dubious. At least in the consumer space---they're done well at things like industrial process monitoring, as I understand it.

We're all speculating here, but I suppose splitting the commercial and consumer sides of the company could pave the way for letting the commercial side focus on digital, where it actually has done well, and the consumer side on film, where ditto.

, especially with a swag of valuable patents. Not sure taking on Apple for infringement of patents is a good idea while on the cusp of Chapter 11 proceedings.

I do know a bit about patent gamesmanship, and I think it's at least plausible that taking on Apple has an element of playing to prospective buyers. If you're a competitor to Apple, you might take notice of a portfolio for sale that's known to have some material relevant to Apple. Again, though, speculating.

-NT
 

IloveTLRs

Member
Joined
May 22, 2007
Messages
1,132
Location
Boston
Format
Sub 35mm
I have a number of Japanese photographer friends, and they are quite worried about Kodak. Their color negative films seem quite popular over here.
 

Barry S

Member
Joined
Jan 28, 2007
Messages
1,350
Location
DC Metro
Format
Large Format
The reorganization doesn't make much sense--other than to reassure investors that *something* is being done. There are some contradictions--film may not be the (big) future, but it's still a profitable unit. My understanding is that the bulk of film is sold to motion picture companies--so how would that fit into a consumer division? This is the classic rearranging of deck chairs on the Titanic.
 

MattKing

Moderator
Moderator
Joined
Apr 24, 2005
Messages
52,935
Location
Delta, BC Canada
Format
Medium Format
I am sure that the motion picture film is part, if not all, of the "commercial" film.
 

timparkin

Member
Joined
Sep 2, 2006
Messages
212
Format
35mm
The reorganization doesn't make much sense--other than to reassure investors that *something* is being done. There are some contradictions--film may not be the (big) future, but it's still a profitable unit. My understanding is that the bulk of film is sold to motion picture companies--so how would that fit into a consumer division? This is the classic rearranging of deck chairs on the Titanic.

If you read the Kodak press release, the consumer film is going to the consumer division and the cinematography film and pro film is going to the pro division. This seems to me more about doing something and removing prominent mentions of film from their P&L.

Tim
 

Sirius Glass

Subscriber
Joined
Jan 18, 2007
Messages
50,364
Location
Southern California
Format
Multi Format
... suddenly develop a rational and realistic plan ...

In any large corporation?? Please, Clay, send some of the stuff your are smokin', snortin' or chuggin'! :laugh:
 

railwayman3

Member
Joined
Apr 5, 2008
Messages
2,816
Format
35mm
Like many so-called re-organisations, this may appear to be "doing something", but does it add one penny to sales or profit or save a penny on costs? (And what about the costs of the re-organisation itself, and the dis-heartening effects on staff morale?) IDK, I only ask...
 

Early Riser

Subscriber
Joined
Feb 10, 2005
Messages
1,679
Location
USA
Format
Multi Format
When Steve jobs came back to Apple he reduced the areas that Apple was involved in. He eliminated 15 of the 19 products that Apple made and broke it into 4 divisions, Desktop computers for home use (iMacs), desktop computers for professional use ( mac towers like the MacPro), laptops for home use (MacBooks), laptops for professional use(macbook pros). This was pretty much all Apple made until he introduced the iPod.

If Kodak could focus their business and push what they do really well instead of chasing a market in which they are a small and over classed player, they have a chance. Kodak was always good at innovation, they should invest money into R&D and then sell or partner those technologies with the major players in those areas.
 

Aristophanes

Member
Joined
Mar 4, 2011
Messages
513
Format
35mm
If Kodak could focus their business and push what they do really well instead of chasing a market in which they are a small and over classed player, they have a chance. Kodak was always good at innovation, they should invest money into R&D and then sell or partner those technologies with the major players in those areas.

Kodak has no money. 30% of their current operational costs are being covered by debt (secured bonds). They have to sell their R&D to keep the lights on.
 

David Foy

Member
Joined
Jul 20, 2004
Messages
6
Location
Calgary
Format
Multi Format
Very little consumer business left

A couple of weeks ago when I researched this, figures from 2011 suggested motion picture film made up more than 95% of what Kodak manufactures and ships, and mass-market camera film (the kind you and I use) was less than 5% and dropping fast. A few years ago it was closer to 97% consumer film, 3% movie.

Fuji continues to compete with Kodak in both areas but its film division has lost money continuously for many years.

The movie business is going digital faster than anyone expected. All of the movie camera manufacturers which supply Hollywood (and Bollywood) have discontinued their non-digital cameras, and installation of digital projectors in US theatres has now passed the 50% mark.
 

clay

Member
Joined
Nov 21, 2002
Messages
1,335
Location
Asheville, N
Format
Multi Format
And that is going to be the problem with Kodak. Their operations are scaled for producing a specific (and pretty large) volume of film. When the movie industry no longer distributes movies on film, Kodak (and Fuji) are going to have too large of a fixed plant investment to justify keeping it open for such a small niche market. Thankfully Ilford rationalized their physical plant a few years back and appear to be profitable at their current production volume.

The movie business is going digital faster than anyone expected. All of the movie camera manufacturers which supply Hollywood (and Bollywood) have discontinued their non-digital cameras, and installation of digital projectors in US theatres has now passed the 50% mark.
 

andrew.roos

Member
Joined
Jan 4, 2011
Messages
572
Location
Durban, Sout
Format
35mm
My take on this is that the "consumer" and "commercial" divisions are defined by market and sales channel - they have many products, using different techologies, that are sold in similar markets through the same sales channels. The old "film" group was defined by technology - it had products that sold in different markets, through different sales channels, but which shared the same technology base. This suggests to me that the are "end of lifeing" film - i.e. they will continue to sell existing products as long as they are profitable enough to cover the overheads and expenses and retain mindshare from the execs in charge of their respective divisions. However they aren't planning any further development. Cost savings will result from elimination of R&D expenses (if there are any left) and unprofitable product lines, reduction of marketing and sales related expenses since these will be shared with other "consumer" and "commercial" products, consolidation of administration and reduction in overheads. The danger is that if "consumer" film sales (probably all still film, as another poster suggested) without support from "commercial" (movie) film does not contribute meaningfully to the bottom line of the consumer division in the eyes of a non-film exec (since the head of film is moving to the commercial products division which leaves consumer products with a non-film head) it may be terminated. I may be reading too much into the shifting of some deck chairs, though.
 
Last edited by a moderator:

clay

Member
Joined
Nov 21, 2002
Messages
1,335
Location
Asheville, N
Format
Multi Format
The whole restructuring thing looks very confusing from the outside. It feels to me like Kodak based its restructuring more on some internal kodak management needs rather than external market needs. But who knows? It is really hard to make sense of it because it appears that some of the same production facilities will be producing stock for two different divisions. This is a recipe for trouble as the division heads try to lay off their costs on the other divisions. Seen it many times in good old corporate america.
 

MattKing

Moderator
Moderator
Joined
Apr 24, 2005
Messages
52,935
Location
Delta, BC Canada
Format
Medium Format
Given the fact that many of the problems we encounter with Kodak seem to be related to distribution inefficiencies, I am guardedly hopeful that the restructuring will result in an improvement in the distribution channels.
 

lxdude

Member
Joined
Apr 8, 2009
Messages
7,094
Location
Redlands, So
Format
Multi Format
There may be good reasons, but one thing it will do is make it no longer possible to see that the Film side is the only one making a profit.

Gee, I wonder why.
 
Last edited by a moderator:
Photrio.com contains affiliate links to products. We may receive a commission for purchases made through these links.
To read our full affiliate disclosure statement please click Here.

PHOTRIO PARTNERS EQUALLY FUNDING OUR COMMUNITY:



Ilford ADOX Freestyle Photographic Stearman Press Weldon Color Lab Blue Moon Camera & Machine
Top Bottom