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Eastman Kodak Company - Case Study Example

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Eastman Kodak Company is regarded as one of the leading multinational photographic and imaging component, services and materials company which is holding a major market share amid the retailers in photofinishing industry. …
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Eastman Kodak Company
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Eastman Kodak Company

Download file to see previous pages... It was observed that Kodak aimed to create a monopoly in the market which violated the Sherman Act’s Section 2 guidelines. The company also attempted to impose varied types of exclusive dealing based contracts upon different retailers. The decree includes licensing of processes for photofinishing as well as assistance of technology for anyone eager to start the business of photofinishing. The main objective of the decree was to ensure a healthy competition among the varied business entities in the photofinishing industry (Baye & Scholten, “Kodak Appeals to Court to Terminate 1921 and 1954 Decrees that Restrict Pricing Policies”). It can be stated that Kodak became the solitary leader in the industry with the development of film based product. The company sold its color film through processing aspects. It is also noted that through bundling the prices of photofinishing as well as processing, Kodak monopolized the market of the photographic industry. This resulted in the emergence of 1954 antitrust decree, which is considered as the second decree affecting the actions of Kodak. The decree was initiated by the court in order to enact restrictions to Kodak against bundling photofinishing process effectively. Hence, it can be stated that both the decrees i.e. 1921 and 1954 had resulted in the creation of enhanced market competition in the global market context for selling the products of photo films as well as processing. The decrees had restricted Kodak’s monopoly business in the global market context (Baye & Scholten, “Kodak Appeals to Court to Terminate 1921 and 1954 Decrees that Restrict ...Download file to see next pagesRead More
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