Kodak is Bankrupting, why doesn’t it seek other options?
Michelle J. Alcaraz
Kodak has been falling dramatically below the market. Since 2008, the
company has only been able to report a profit 1 year. The current article
states that Kodak loses a patent case against Apple and Research in Motion,
Ltd. the companies behind the ever so popular makers of the iPhone and
Blackberry devices. Kodak claimed the companies had infringed on “patent 218”
that allows for previewing digital photos. The article also mentions that Kodak
will be having a bankruptcy court auction to sell 1,100 patents that could help
the company raise a much needed $2.6 billion allowing them to rise into being a
“viable company again”. However, just in selling the rights to single “patent
218” to LG and Samsung, Kodak was able to raise nearly $1 billion.
I understand that “desperate times call for desperate measures” and the
auction will allow the company to come back from being negative, but I would
think that if a single patent made about two-thirds of what Kodak is hoping to
make by selling 1,100 patents, that Kodak should consider re-working their
strategy of their come back.
According to their forecasts of 1,100 patents generating $2.6 billion, that
means that each individual patent is predicted to sell for a little more than
$2 million. Although they’ve already began burning bridges over the last two
years with this suit between Apple and RIM, it hasn’t changed the public’s view
on any of the companies.
Apple, Blackberry and Kodak are all household names. We all know Apple for
having the best gadgets such as the iPhone, iPad and iPod, everyone knows about
Blackberry products as well and we all grew up developing Kodak film. I can
personally say that in my household of 2, we have an iPhone, iPod, Blackberry
9820, and a Blackberry Playbook. However, we do not own a single Kodak item. We
use our phones and playbook as a camera. So, it would seem as though no one
would miss Kodak not being around. However, we live in a society where
convenience is key. We don’t have a Kodak camera because it would be
inconvenient to carry an extra gadget around every day when out daily gadgets
do the job. The problem is, they don’t do as
well as a job.
I would think it would be fantastic for the companies and consumers alike
for our daily gadgets to have “Kodak Quality” behind their cameras.
Incorporating all the names we love and trust would have consumers more
satisfied and more willing to pay extra for the items we want.
Although the likelihood of this happening before the auction is low, if
Kodak would be willing to apologize and appeal to Apple and RIM, it could bring
not only their pocketbook, but their future back from the dead.
Mattioli, Dana. "Kodak Loses Patent Case
Against Apple, RIM." Wall Street Journal (Online): n/a. The Wall Street Journal. Jul 22 2012. Web.
22 July 2012 .
It seems to me that the best route for Kodak to take would be to raise enough money and make a comeback. Sure our phones are capable of taking good pictures but nothing beats a device whose sole purpose is to function as a camera. They should try and improve their devices so more consumers would be willing to buy them. A lot of phones out there do not have the capabilities that many of these cameras have and I believe that is where Kodak can take advantage and offer something better and innovative.
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