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Eastman Kodak

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EXTERNAL ENVIRONMENT

A. Societal Environment

Economy

• Economic influence of 9-11 (T)

• Theme parks, lodging, advertising, entertainment down (T)

• U.S. economic downturn (T)

• Less disposable income (T)

• Consumers dropped brands for private labels (T)

• Advertising decrease = lower film sales

• Strong U.S. dollar (T)

• Exchange rates neg. impact sales & profits (O/T)

• Gradual return to previous spending habits (O)

2. Technology

• Developing/emerging markets continue to use film (O)

• Change to digital imaging (O/T)

• Digital substitution more rapid in Japan (T/O)

• Demand for digital cameras increasing (O/T)

• 62% believe innovation/digital processing key to growth (O)

• 76% believe digital difficult to use (O)

• Not all consumers comfortable with downloading and printing on their own(T)

• Getting good prints from digital confusing, complicated, expensive (T)

• Info-imaging increase 9-10% in 2001 (O/T)

• Info-imaging $768B by 2010 (O)

• Trend to converge image & information technology (O)

• Improving infrastructure of internet (O)

• Rapid transfer of files(O)

• Internet appliances (O)

• Growth of broadband and wireless capacity (O)

• Development of digital storage technology (O)

• PIMA establishes picture transfer protocol (O)

• Pictures now down-loaded and printed immediately (T)

• Inkjet printers improved image quality (T)

• CPX standardized languages to relay picture data (O)

• PC software companies control consumer access to photos (T)

• Photo retailers going to digital mini-labs (O)

• Internet photo finishing with personalized service (O)

3. Political-Legal

• Strikes in entertainment industry (T)

• Movie film sales (O)

• E.P.A. (T)

• Designated

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