Word: kodak
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Dates: during 2000-2009
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...this new digital arena, Kodak isn't the yellow monster. It's just one of the pack, which ranges from such tech titans as Sony and Hewlett-Packard to brash online photo start-ups like Shutterfly, Photopoint, Ofoto, Zing and Snapfish (see box). Says Eva Manolis, co-founder of Shutterfly: "We're driving our business by hope of gain rather than fear of loss...
...Kodak has a lot to lose. More than 4 million digital cameras were sold in the U.S. last year, a number that is expected to nearly double in 2001 and outpace the stagnant, traditional camera market within a few years. Consumer appetite for film in the U.S. has almost peaked, at slightly more than 1 billion rolls a year. Indeed, much to the dismay of some amateur enthusiasts (including, perhaps, Paul Simon), Kodak is quietly phasing out much of its trademark Kodachrome line of film...
...make up for that potential lost revenue, Kodak has to persuade people to turn pixels into paper. This week it is rolling out a new digital camera-and-software system, dubbed EasyShare, that is intended to eliminate the hassle and confusion of uploading photos to a PC and the Internet. Meanwhile, the company is busy partnering with hardware makers like Lexmark to offer Kodak-brand printers and scanners for the home, where most digital prints are now made...
...Kodak's troubles exemplify the difficulty that any company has in handling paradigm shifts caused by technology. It has plowed billions of dollars into the digital business, which by 2005 should account for almost half its revenues. But its digital-camera division has yet to enter the black. "If you look at the hardware business alone, you'd probably never get into it," says Willy Shih, head of Kodak's Digital and Applied Imaging unit. Kodak is the worldwide leader in film cameras and has lately produced some sleek units. But in digital, Kodak trails Sony...
...digital age, Carp believes, Kodak will make most of its profits after, not before, a picture is taken, helping customers store and print their digital images in all sorts of new ways and charging a premium for the service. That means everything: adding borders or frames, turning color into black-and-white, eliminating red eye and fashioning posters, homemade greeting cards, glossy album pages, calendars, T shirts and maybe even wallpaper...