Eastman Kodak faced challenges that threatened its future success and existence. George Eastman created the photography industry when he patented film rolls in 1879 and started selling Kodak cameras to amateur photographers in the late 1880s. Kodak was headquartered in Rochester, New York after being founded by George Eastman in 1889.

1. “Eastman Kodak faced challenges that threatened
the future prosperity, perhaps the existence, of the
business.”
It’s not an overstatement to say that George Eastman created a new industry.
In 1879, he obtained a patent that was the basis for photography involving film
in rolls. Less than 10 years later, his fledgling firm started producing and
marketing Kodak cameras for amateur photographers. By 1896, the Eastman
Kodak Co. had sold 100,000 cameras. It’s headquartering in Rochester; New
York was founded by George Eastman Kodak in 1889.

2. More about KODAK Page (252)
Q1(a).Has Eastman Kodak relied on product-mix expansion, alteration of existing
products, or product-mix contraction in the past five years?
Answer: In its past 5 years the company has relied on product-mix expansion i.e. digital and
imaging from amateurs to professionals, also in health imaging. In graphics communication and
also concentrating on leading edge display devices and components. Also in 2007 they have
interested millions to start producing inkjet printers, ink cartridges as their main focus and high
speed commercial inkjet printers.
Q1(b).Which of these three product-mix strategies will Kodak need to follow in
the next five years?
Answer: Since product mix expansion was the previous strategy followed by 120dak and
resulted them in high profit only till the 90’s, but then after that they have been struggling to
stay on their feet and even went bankrupts in late 90’s and had to borrow loans in millions.
Because of the decline of products and not being able to keep up with competitors like Apple,
Canon, Epson who are out running them in digital imaging. In the next 5 years product mix
contraction is the strategy to be followed because of integration of cameras in cell phones,
Smartphone’s and tablets. Their company invested in millions since 05 to ink jet printers and is
slowly trying to phase out digital camera business. It sees home photo printers, high speed
commercial inkjet process and ink cartridges as care of its future business.

3. Q2.How well has Kodak managed its key product lines in relation to
their life cycles?
Answer: 20th century was the most dominant for Kodak as 90% of market shares were
through its photographic film sales and 85% camera sales in the U.S but then later in late 90’s it
started to struggle financially. As its products were losing demand and they suffered a loss of
60$ on each sale in 2004 it announced to stop making still cameras and started making digital
ones .In 2007 the company invested in millions and re entered the market with AIO (All in
one)ink jet printers and emphasis was on the low price ink cartridges rather than printers and it
is still working on slowly phasing out of digital camera business.