INTRODUCTION Even though Eastman Kodak is the leader in digital camera sales, all is not well. Film has always been a high-margin product for Kodak but as this part of the business is rapidly shrinking it's time to look to new products and markets. For the first quarter of 2005, Eastman Kodak reported a $142 million loss. While it may appear Kodak is in dire straights, they are taking actions to establish themselves in the digital printing market. With the leadership of new CEO, Antonio M. Perez, Eastman Kodak is ready to forge ahead to once again become an industry leader. Are they on track to meet their vision? By analyzing the current environment including the macro environment and evaluating how they have managed their …show more content…

Industry analysts expect HP to sit back and wait to see if Kodak's new machines get traction. If they do, HP could respond with selective discounting." (Hamm. 2007) MACRO ENVIRONMENT When examining the macro environment it is important to look at the political, economic, social, and technological components of the macro-environment. For the most part, Kodak is on par with its competitors in relation to political issues. The regulation and de-regulation trends, social and employment legislation, tax policy and trade and tariff controls, and environmental and consumer-protection legislation apply equally to all the major competitors in the digital printing industry. Economically there are some significant disparities. The major difference is in the stage of the business cycle. While Eastman Kodak is a well established company, with decreasing emphasis on film and an increased emphasis on digital printing, they are behind the power curve of their established competitors. However, this can be an advantage according to Kodak CEO, Antonio Perez. "We're very proud that we're coming to the market 20 years late. We think it will give us an opportunity to disrupt the industry's business model and address consumers' key dissatisfaction: the high cost of ink". Another economic issue is cost of labor. Kodak has moved much of its labor to Mexico thus avoiding the higher cost of labor in the U.S. This