Will Kodak go bankrupt?

Kodak has been around so long that it is hard to imagine a photography world without this formidable icon.

So, it has come as a surprise that the company may soon declare bankruptcy.

The company was founded in 1880 by George Eastman and gained a strong following with the introduction of the Brownie camera in 1900 (originally selling for a dollar), Kodachrome (color film) in 1935 and then later Ektachrome in the 1940's. The latter film had a greater sensitivity to light than the former and was the film of choice for low lighting settings.

In 1975, the company invented the digital camera and introduced its first copier.

By 1976, Kodak had 90% of the photofilm market in the U.S. and 85% of all cameras.

But Kodak's  dominance was toppled when the Japanese company Fujifilm entered the market with low-priced films and supplies. (Kodak smugly thought it could rest on its laurels and maintained its higher prices.)

In the early 2000's, Kodak moved into the manufacture and sales of digital cameras and in 2005 was #1 in the US in digital sales. However, profit margins were pared as so many competitors entered the market.

In addition, smart phones are now sold with digital cameras--further undercutting Kodaks's digital camera sales.

Kodak owns about 1100 patents which could generate several billion dollars of income. However, will this cash be sufficient to keep the company alive?

Good luck, Kodak.