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Kodak's Four Challenges Part 1 of 2

Eastman Kodak is "

Monday, March 21, 2005

Eastman Kodak is "back" as a full-fledged major supplier to the graphic arts marketplace. It will soon take full ownership of its joint-venture with Sun Chemical, Kodak Polychrome Graphics, and incorporate it into Kodak's newly organized Graphic Services & Solutions section within the Graphic Communications Group. GSS is expected to have revenues of about $2 billion worldwide.

Adding to KPG's own portfolio of consumables, Kodak has reacquired much of its own digital printing technology that earlier Kodak policy-makers had sold off or placed into arm's length joint-ventures. Kodak reacquired its own high speed black and white printing technology, high speed ink-jet printing technology and took full ownership of a high speed digital printing press offering in which it had previously held a 50% interest. Additionally, Kodak has acquired a wide-format inkjet offering and is about to acquire a digital platemaking manufacturer. KPG's current consumables business – plates, film and proofing products – still dwarf all the other offerings in volume.

Kodak seems to be assembling a requisite product offering to restore its position as one the "Big Three" players (Kodak, Fuji and AGFA). Now, it just has to figure out how to get these products to printers on a profitable basis. Some would argue that developing a product portfolio is the easier part. Distribution and sales challenges are greater. Analysts can objectively measure and track the relative success or effectiveness of print-related technology trends. The questions of sales and distribution strategies remain murky and poorly documented.


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