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1、FortheexclusiveuseofG.REGENSBURGER9-705-448REV:NOVEMBER2,2005GIOVANNIGAVETTIREBECCAHENDERSONSIMONAGIORGIKodakandtheDigitalRevolution(A)InFebruary2003,DanielA.Carp,Kodak’sCEOandchairman,reviewed2002salesdatawithKodak’sseniorexecutives.Filmsaleshaddropped5%from2001andrevenuesweredown3%.2003didn
2、otlookanybrighter:Carpexpectedrevenuestogrowonlyslightlyandnetincometoremainflatordecrease(seeexhibit1forinformationonKodak’sfinancialperformanceandexhibits2and3forinformationonsalesofcamerasandfilmrollsintheUnitedStates).Thefilmindustrywas“under1pressureunlikeeverbefore.”Carppredicteda“fairl
3、ylongdownturn”fortraditionalphotographysalesasconsumersturnedtodigitalcameras,whichdidnotrequirefilm.KodakwasmovingmoreofitsmanufacturingtoChina,whereitcouldboostfilmsales,andwasplanningtoslash2,200jobs,or3%ofitsworkforce,especiallyinthephoto-finishingbusiness.Carphadreceivedamaster’sinbusine
4、ssfromMIT.HehadbegunhiscareeratKodakin1970asastatisticalanalyst.Sincethen,hehadheldavarietyofpositionsatKodak.In1997,hebecamepresidentandCOO,andwasappointedCEOonJanuary1,2000.HebelievedKodak’scurrentstrugglewasoneofthetoughestithadfaced.HowcouldheusedigitalimagingtorevitalizeKodak?Kodak,1880-
5、1983:AbriefhistoryIn1880,GeorgeEastmaninventedandpatentedadry-plateformulaandamachineforpreparinglargenumbersofplates.HealsofoundedtheEastmanKodakCompanyinRochester,NewYork.In1884,hereplacedglassphotographicplateswitharolloffilm,believingin“thefutureofthefilm2business.”AlthoughKodakoriginally
6、facedseverechallenges,itquicklybecameahouseholdname.Eastmanbelievedsuccesscamefromauser-friendlyproductthat“wasasconvenientasthe3pencil.”Kodakregardedmarketingasessentialtoitssuccess.Itfirstadvertisedfilmin1885.Eastmancoinedtheslogan“Youpressthebutton,wedotherest”whenheintroducedthefirstKodak
7、camerain1888.HeidentifiedKodak’sguidingprinciples:massproductionatlowcost,internationaldistribution,extensiveadvertising,andcustomerfocus,andgrowththroughcontinuousresearch.HealsoarticulatedKodak’scompetitivephilosophy:“Nothingismoreimportant
