Thursday, February 2, 2012

Kodak's travails provide multiple lessons

Thought for today:

Kodak's travails provide multiple lessons: You’ve undoubtedly seen the news that legendary companyKodak is in se...

This guy nails it. If the business model is built around a high-margin consumable -- disposable diapers, razor blades, or even gasoline -- reconfiguring the business to be self-sustaining from low-margin products is a pretty big challenge. Witness the newspaper business, where the high-margin consumable is printed advertising, which has all but evaporated to the web.

Many of the same media outlets doing Monday-morning quaterbacking on the decline of Kodak are much closer to the same sort of drop-off. Let's see them create a sustainable business model around a digitally delivered product.