[LOGO] FUJIFILM

[TITLE] Know the FACTS


What Kodak Isn't Telling You

The Real Story of Kodak Management

  • Since 1994, Fuji employees have produced, on average, more than the double the revenue of their Kodak counterparts.

Revenue Per Employee
Fujifilm produces twice as much revenue per employee as Kodak
[FIGURE] Revenue Per Employee
* Revenue prorated due to transitional 5 month, 11 day fiscal year
Sources: USA Today 9/17/97, Hoover's Handbook, Value Line

  • "Kodak has a lot of really brilliant scientists hard at work, and they'll tell you time and time again:   'oh we had that, we just didn't get it out as fast as Fuji.'   So I think they need to rethink the process and work on cycle times, whether it's in how long it takes to handle paperwork or how long it takes to introduce a new film.   That's part of the bureaucratic nightmare that is Kodak."     -   Alecia Swayze, author of "Changing Focus: Kodak and the Battle to Save a Great American Company"

  • "Kodak hasn't acted like a leader in the marketplace.   Kodak isn't in an aggressive position to recoup any market share."     -   Britt Beemer, author of "Predatory Marketing: What Everyone in Business Needs to Know to Win Today's Consumer"


The Quality Issue

  • Some of the customers Kodak lost to Fuji may be gone for good. When Fuji cut prices, many people tried the film.   And many found they "like the color rendition on Fuji better," according to Shutterbug magazine editor Bob Shell.
  • ABC News polled the seven still photographers at Kodak's Nov. 11 press conference to see which film they preferred. All seven were using Fujifilm.


In Jaapan, meanwhile,

  • Kodak was two years behind Fujifilm in marketing high speed color film and one-time use cameras which comprised 60% of the market.
  • Kodak film boxes weren't printed in Japanese until 1987.


Kodak Executives Admit Their Mistakes

In Japan... Albert Sieg, former President of Kodak Japan:
"One of the biggest problems that Kodak has in Japan is that for clearly ten years of good opportunity, we neglected Japan.   "So you know, we did it to ourselves."     -   Wall Street Journal, August 14, 1996
Kay Whitmore, former Chairman of Eastman Kodak:
"There is no further barrier in the Japanese market for Kodak ... if there should be something, it would be only due to Kodak's own insufficient effort in Japan."     -   Kagaku Kogyo Nippo Journal, October 4, 1990
Yoshikazu Hori, current President of Kodak Japan:
"Fujifilm's distribution system (in Japan) may not necessarily be the problem."     -   April 3, 1997 news conference
"In the minds of (Japanese) consumers, the image is that Kodak is a kind of losing dog to Fujifilm. Kodak is always following Fuji."     -   Rochester Democrat & Chronicle, June 30, 1997
In the U.S. ... George M.C. Fisher, Eastman Kodak CEO
"We're clearly mad we got ourselves into the situation we're in today. Wishful thinking, perhaps like we've been guilty of in the past, will not change the facts."     -   USA Today, November 12, 1997


Kodak Promotions Have Improved Its Japan Market Share

With a substantial investment in a marketing and sales campaign surrounding the 1998 Winter Olympics in Nagano, Kodak's market share in the region has tripled in 2 1/2 years.