Destroying American Jobs (ie Kodak)

[tw]

Only a fool or business school graduate would think jobs are created (or lost) due to things that happen this year or last year. Everyone should be aware that Eastman Kodak is on the verge of bankruptcy. And should know why.

Kodak was created in the 19th Century by pioneering and advancing the film industry. By people who come from where the work get done. It could have continued if, well, 85% of all problems are directly traceable to top management.

Kodak's innovations were image processing. But Kodak remained only in film. As others made better cameras, Kodak only made film. In 1975, Kodak developed the world's first digital camera. But Kodak remained in film. Then Kodak finally decided to make in the 1980s what was pioneered in the 1940s - instant photography. As any business school graduate would do, Kodak did not bother to innovate. In 1986, it was obvious in court that Kodak was simply violated Polaroid’s patents. Kodak withdrew from the instant photography market that was in 1980 another buggy whip business. Kodak remained only in film.

Obvious was that imagining was more than film. A 1960 technology - copiers was clearly innovative. But when Kodak decided to make copiers 20 years later - too little too late. More buggy whips.

Management was so dumb that Kodak president Kay Whitmore even feel asleep in a critical 1990 meeting with Bill Gates. After all, Kodak was only about film.

Others such as Fuji and Agfa were taking market share from Kodak. In a press conference, Kodak's president went down to talk to the photographers. To ask why news photographers were all using Fuji film. He was told that Fuji film did the more vibrant colors that the press wanted in photos. And still he did not get it. Kodak remained making conventional film.

Kodak once owned 90% of the film business and 85% of the camera business. So Kodak stopped innovating by doing what any business school graduate would do. Since every business school graduate is taught the purpose of a business is profit. Innovation costs money.

In 2003, Kodak hired a new president: Antonio Perez. A business and marketing graduate of Spanish and French business schools. Having surrendered the entire digital camera market to patriotic companies, by not even advancing their conventional film business, and after failing miserably in other 'too late to the market ventures' such as the copiers, then Kodak decided to innovate. They decided to make ink jet printers AFTER trends were moving from paper copies to electronic copies. According their 'innovator' Perez, Kodak was going to, "disrupt the industry’s business model and address consumers’ main dissatisfaction: the cost of ink”. My experience with Kodak printers - it eats ink quickly.

Kodak surrendered the conventional and digital camera markets in a fashion routinely seen when a company is lead by business school graduates. And protected by other business school graduates. Eventually Kodak stopped making films. Decided to innovate by moving into another 'buggy whip' business.

After six years of no accomplishment (thanks in part to a Board of Directors who are also business school geniuses), Kodak is burning through cash in scary numbers. Some Kodak credit lines were recently closed. Kodak's future products were obviously so defective for so long that even some on Wall Street see reality. While Perez still insists even last July that Kodak will disrupt what is beginning to become a buggy whip industry - paper printers.

Some of this is discussed by the NY Times of 20 Oct 2011 in Negative Exposure for Kodak

Eastman Kodak sold for $60 per share a decade ago. When Perez took over in 2005, Kodak was $30 per share. Recently the stock sold for about $0.60 per share before rising back up to $1. A stock that sells for less than $1 per share can be delisted on the stock market. The only thing keeping Kodak alive was the mental midgets on Wall Street who profit by doing so.

Why does Wall Street keep loaning money to a company that has decided to invest $billions in another buggy whip? Wall Street cannot see an innovation even it if was sucked up their nose. The reference to cocaine is far from accidental. Wall Street only understands investing in obsolete technologies. And takes $billions from America by doing so.

Kodak is another trophy of what is the most popular post-graduates of American schools create. Most are taught how to be as anti-American as Perez and George Jr (another business school graduate). Too enrich the top people while destroying American jobs. How many more thousands of Americans must be unemployed thanks to Kodak management in 2005 and decades earlier? More American jobs destroyed - surrendered to the Japan, China, and elsewhere, because 85% of all problems are directly traceable to those who enrich themselves at the expense of America.

He could not possibly innovate. Due to Board of Directors, Wall Street stock brokers, and investment bankers, then American simply wasted more $billion for the greater glory of business school management.

Only one question remains. When will the American economy stop harming itself by protecting Kodak? The sooner Kodak goes into bankruptcy, then the sooner future American jobs will stop be destroyed by more money games. It means Wall Street must stop screwing America to enrich themselves. And drive Kodak out of business.