Kodak 2010 Annual Report Download - page 8

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Digital Printing Solutions: Digital Printing Solutions includes high-speed, high-volume commercial inkjet printing equipment,
consumables, and related services, as well as color and black-and-white electrophotographic printing equipment, consumables, and
related services. Commercial inkjet is one of Kodak’s four digital growth initiative businesses.
Innovative product offerings include PROSPER color and black-and-white presses, components and systems. These products utilize
Kodak’s revolutionary Stream technology to deliver high-speed, high-quality variable data inkjet printing on a broad range of media at
a low running cost.
Business Services and Solutions: The Business Services and Solutions group’s product and service offerings are composed of
high-speed production and workgroup document scanners, related services, and digital controllers for driving digital output devices,
and workflow software and solutions. Workflow software and solutions, which includes consulting and professional business process
services, can enable new opportunities for our customers to transform from a print service provider to a marketing service provider,
and is one of Kodak’s four digital growth initiatives.
Marketing and Competition
Around the world, graphic communications products and services are sold through a variety of direct and indirect channels. The end
users of these products include businesses in the creative, in-plant, data center, commercial printing, packaging, newspaper, and
digital prepress market segments.
GCG faces competition from other companies who offer a range of commercial offset and digital printing equipment, consumables
and service. The Company also faces competition from document scanning equipment manufacturers, software companies, and
other service providers. Competitiveness is generally focused on technology, solutions and price.
Film, Photofinishing and Entertainment Group (“FPEG”) Segment
FPEG provides consumers, professionals, and the entertainment industry with film and paper for imaging and photography. Although the
market for consumer and professional films, traditional photofinishing and certain industrial and aerial films are in decline and expected to
continue to decline due to digital substitution, FPEG participates in large markets and enjoys number 1 or number 2 market share position
in those markets. The strategy of FPEG is to provide sustainable cash generation by extending our materials science assets in traditional
and new markets.
Entertainment Imaging: Entertaining Imaging includes origination, intermediate, and color print motion picture films, special effects
services, and other digital products and services for the entertainment industry.
Net sales of Entertainment Imaging accounted for 10%, 12%, and 11% of total consolidated revenue for the years ended December
31, 2010, 2009, and 2008, respectively.
Traditional Photofinishing: Traditional Photofinishing includes color negative photographic paper, photochemicals, professional
output systems, and event imaging services.
Net sales of Traditional Photofinishing accounted for 10%, 11%, and 12% of total consolidated revenue for the years ended
December 31, 2010, 2009, and 2008, respectively.
Industrial Materials: Industrial Materials encompasses aerial and industrial film products, film for the production of printed circuit
boards, and specialty chemicals, and represents a key component of FPEG’s strategy of extending and repurposing our materials
science assets.
Film Capture: Film Capture includes consumer and professional photographic film and one-time-use cameras.
Marketing and Competition
Film products and services for the consumer and professional markets and traditional photofinishing are sold throughout the world,
both directly to retailers, and increasingly through distributors. Price competition continues to exist in all marketplaces. To be more
cost competitive with its traditional photofinishing and film offerings, and to shift towards a variable cost model, the Company has
rationalized capacity and restructured its go-to-market models in many of its traditional market segments.
Throughout the world, most Entertainment Imaging products are sold directly to studios, laboratories, independent filmmakers or
production companies. Quality and availability are important factors for these products, which are sold in a price-competitive
environment. The distribution of motion pictures to theaters is another important element of the Entertainment Imaging business, one
in which the Company continues to be widely recognized as a market leader. Price competition is a bigger factor in this segment of
the motion picture market, but the Company continues to maintain leading share position. As the industry continues to move to
digital cinema formats, the Company anticipates that it will face new competitors, including some of its current customers and other
electronics manufacturers.
Financial Information by Geographic Area
Financial information by geographic area for the past three years is shown in Note 24, “Segment Information,” in the Notes to
Financial Statements.