Eastman Kodak Company: Reviving Through Diversification
(6 pages of text)
Case (Pub Mat)
In July 2020, Eastman Kodak Company (Kodak) received a US$765 million loan from the US federal government for drug component manufacturing. Kodak's chief executive officer (CEO) was confident about the company's ability to excel in the pharmaceutical industry. However, critics cited several concerns, such as workforce availability and Kodak's lack of experience in the pharma business. The CEO believed that Kodak’s expertise in advanced chemicals and manufacturing could drive the firm’s success in the pharma business. Would Kodak be able to establish its mark in the US pharma industry? What challenges was Kodak likely to face?
This case is intended for undergraduate- and graduate-level courses in strategic management, corporate governance, and business strategy. After working through the case and assignment questions, students will be able to do the following:
- Critically analyze factors that can make a firm succeed as it diversifies into a new business.
- Evaluate the issuance of stock options when a firm follows a low-cost strategy.
- Explore how firms develop dynamic capabilities.
- Understand how to exploit core competencies to diversify into related business.
United States, Large, 2020
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download