Kodak claims that market barriers have limited its sales in Japan, but the company's history proves otherwise.

     Kodak Japan executives and consultants to Kodak all identify the source of Kodak's problems in Japan as Kodak's failure to take control of its own distribution in the 1970s and 1980s, and its failure to supply the right products for the market.

     Throughout the last three decades, Kodak has consistently failed to take advantage of investment or business opportunities in Japan.

Even when Japan had controls limiting foreign investment to 7 percent of Japanese companies, Kodak could have invested in Japanese distributors.

It chose not to do so.

As early as 1971, Kodak could have entered into 50-50 joint ventures in manufacturing, distribution, or photofinishing.

It chose not to do so.

By 1976, Kodak could have owned such enterprises outright.

Kodak did nothing.

As late as 1984, Kodak had only 25 employees in Japan. Only after 1986 did Kodak even begin investing in its Japanese distributor.