Kodak's changing face over the years.
Eastman Kodak stock trades sharply higher yesterday as the company made public a restructuring plan. Kodak plans on dividing the company into two basic segments: consumer and commercial, with both reporting to a “chief operating office” led by the company president and the chief operating officer. They, in turn, report directly to the CEO, Antonio Perez. This is in contrast to the old model, which consisted of three groups: graphic communications, consumer digital imaging, and a film, publishing and entertainment division. Additionally, Kodak filed lawsuits against Apple and HTC in defense of four of their patents, believing iOS devices and several HTC smartphones and tablets infringe on them in the area of image transmission.
Overall, Kodak’s goal is to efficiently complete a transformation into a digital company while not getting buried in administrative costs.
This appears to be a step in the right direction for Eastman Kodak, but as I alluded to in my earlier article on the subject, I think their long-term challenge involves creating new products or services to remain relevant. I’m not sure the public equates the Kodak name with superior alternatives to similar products offered by the competition. They need to find a niche with something original to regain lost respect for the brand.
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