Kodak said that it plans to continue providing 35mm cameras in emerging markets, such as China, India, Eastern Europe and Latin America, and will introduce six new film cameras in those markets this year. It predicts rapidly growing markets for cameras and film in those countries, in contrast to what is being seen in the west where the demand for film-related products is shrinking much more rapidly than anticipated, while purchases of digital cameras continue to grow dramatically. Kodak's array of digital cameras now extends from point and shoot consumer models to high-end professional (read very expensive) digital cameras and camera backs. It will increase its production of inkjet printing papers, and plans to introduce a new line of consumer ink jet printer models to go head-to-head with the well-established offerings from HP, Epson, Lexmark, etc.

Kodak's landmark shift in focus represents a profound change for the world's largest filmmaker, and a huge gamble. The success of the move remains uncertain. Just when Kodak needs increasing film revenues to underwrite the costs (in the billions) of this transition, film sales are dropping substantially. Since 1997 Kodak has reduced its workforce by more than 30,000 jobs. Another 15,000 jobs will be eliminated in the next two years in a further effort to reduce costs. Success is not a given. If fortune does not smile on Kodak, then not only may the Yellow Box disappear, but the company itself may go down the same path-and it won't be a Yellow Brick Road!

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