Why Is Kodak Going Bust? Blame Rochester

WSJ essayist thinks hometown held back the company

By John Johnson,  Newser Staff

Posted Jan 13, 2012 12:01 PM CST

(Newser) – Kodak is on the brink of going belly up, and the prevailing wisdom says that the company missed the boat on digital cameras and smartphones. "Rubbish!" writes Rich Karlgaard, who will after today be persona non grata at the local chamber of commerce, in the Wall Street Journal. He thinks a big part of the reason behind Kodak's struggles is its hometown of Rochester, New York.

"When you study the history of great American companies that stumbled and failed, or only partially recovered, you see how difficult it is to overcome the mindset of your immediate surroundings," he writes. Oof. If Kodak were in, say, Silicon Valley, the company could have been more aggressive with restructuring and layoffs, he argues. "The impact on a small city and the multiplier effect of lost jobs, axed all at once, would have been a civic disaster. Of course, Kodak's slow bleed has turned out to be a civic disaster anyway." Full column here.

Kodak headquarters in Rochester, NY.   (AP Photo/David Duprey, file)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
22%
5%
13%
50%
9%
1%
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!