Kodak's Comeback

Posted by: Steve Hamm on February 14, 2008

A year ago, when Kodak made a risky bet on entering the $50 billion consumer printer business, Chief Executive Antonio Perez warned that if the company didn’t launch its first inkjet printers correctly, the strategy of selling top quality printers and half-price ink would fail. Kodak accomplished what it was aiming for, and a little more. It sold 520,000 of the machines last year, 20,000 over its target. It cost Perez more than he had expected. The incumbents trimmed some prices, forcing Perez to spend $50 million more on marketing than he had planned. Finally, during the last four months of 2007, sales really took off as customers began to understand Kodak’s pitch. Perez predicts he’ll sell two to three times as many printers this year. “We were 20 years late to get into this market, but we have a strong value proposition,” he told me. He also hinted at more to come. This year, Kodak plans on bringing the same kind of technology and business model disruptions to the commercial printer industry, with new offerings based on its continuous-spray technology. At this rate, Perez may actually save an American business icon which just a few years ago seemed to destined to land on the scrap heap of history.

Reader Comments

N.Walter

February 16, 2008 3:21 PM

I'm not surprised by Kodak's strong sales. The half priced cartridges is what moved me to try one, and so far so good.

www.zpryme.com

Post a comment

 

About

Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

Categories

 

BW Mall - Sponsored Links

Buy a link now!