Kodak

The company's strategies in its consumer digital business are to drive image output and sharing in all forms and make digital easier to use. The company faces competition form other electronics manufacturers in this market, particularly on price and technological advances. Rapid price declines shortly after product introduction in this environment are commons, as producer are continually introducing new models with enhanced capabilities, such as improved resolution and or optical systems. Kodak EasyShare gallery, the company's online printing business, continues to demonstrate strong growth and began the establishment of a customer base in selected overseas markets in 2003. Company continues to provide better performing and innovative traditional films and papers, the focus has shifted towards new products, systems and solutions focused on improving the digital workflow for professional photographers and laboratories. Kodak's advertising programs actively promote the segment's products and services in its various markets, and its principal trademarks, trade dress and corporate symbol are widely used and recognized. Kodak is frequently noted by trade and business publications as one of the most recognized and respected brands in the world. Sales and earnings of the D&FIS segment are linked to the timing of vacations, holidays and other leisure activities. The digital capture and home printing products have experienced peak sales in the fourth quarter as a result of the December holidays. Sales are normally lowest in the 1st quarter due to the absence of holidays and fewer people taking vacations during that time. The downward trend in research and development expenditures in the D&FIS and Commercial Imaging segments and upward trend in the Health and Graphic Communications segments and All Other reflects the shift in strategic focus from traditional products, such as color negative film and paper and color reversal films, to digital product areas, such as display technology, digital medical imaging, software, and digital printing. The company's major products are not dependent upon one single, material patent. Supported by an aggregation of patents having various remaining lives and expiration dates.

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