Kodak Click for Bankruptcy
|
Case Code: BSTR416 Case Length: 31 Pages Period: 2003-2012 Pub Date: 2012 Teaching Note: Not Available |
Price: Rs.500 Organization: Eastman Kodak Company Industry: Consumer Electronics Countries: Unites States Themes: Bankruptcy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
It was early morning of January 19, 2012, when Eastman Kodak Company (Kodak), one of the top five most valuable brands of the world until the 1990s, filed voluntary petitions for business reorganization under Chapter 113 of the bankruptcy code. The company filed its petitions before Allan L. Gropper at the United States Bankruptcy Court, Southern District of New York in the United Sates (US). Kodak had not reported any profit after 2007 and total net sales had plunged from US$10.3 billion in 2007 to US$6.0 billion in 2011. As of December 31, 2011, Kodak, a 131-year-old photography pioneer, had US$7,028 million of liabilities while its assets base was US$4,678 million or just 66.56% of its liabilities.
Experts opined that the company had failed to adapt to the changing business models. Its cash and equivalents fell steeply from US$2.9 billion in 2007 to US$861 million in 2011.
In the second half of 2011, the market had been teeming with rumours of Kodak's bankruptcy but when the actual announcement came on January 19, 2012, it left many Americans and others who used Kodak products with a sense of loss. Shannon Cross (Cross), Analyst, Cross Research LLC, said, "It is a very sad day even though we had anticipated it." The company, known as the 'Google' or 'Apple' of its time, had dominated the photography industry for a more than a century. At the start of the 20th century, it had become a household name in the US, Europe, and some other parts of the world with its slogan 'You press the button, we do the rest'. The company followed the 'razor-blade' strategy whereby it sold inexpensive cameras on thin margins and later earned huge margins on film roll, photo paper, and chemicals...
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
