Reinventing Post Offices in a Digital World

The American Postal Service is facing bankruptcy with $9 billion dollar negative cash flow. One way to come up with a new business model is to see what happens in other parts of the world. It turns out that European postal services have already spent to past 20 years trying to reinvent themselves, as detailed in this article in the NY Times.

Posted on Oct 31, 11

Kodak Tries for 30 Year to Turn its Business Around

The WSJ reports:

ROCHESTER, N.Y—After three decades of serial reorganizations, Eastman Kodak Co. is struggling to stay in the picture.
The 131-year-old company lost much of its film business to foreign competitors, then mishandled the transition to digital cameras. Now it is quickly burning through its cash as it remakes itself into a company that sells printers and ink.

On July 26, Kodak reported its fifth consecutive quarter of losses. The company’s junk-rated debt coming due in two years has moved below 80 cents on the dollar, signaling the market sees a risk of default. The company’s already battered stock has taken an especially tough pounding in recent days, falling 10% Wednesday to $1.77. Prior to this week, Kodak hadn’t closed below $2 since the 1950s, according to the Center for Research in Security Prices at the University of Chicago.

Read Full Story

Update January 5, 2012.  Kodak files for bankruptcy

Economist.com: Update January 14, 2012. Kodak is at death’s door; Fujifilm, its old rival, is thriving. Why?

Feb 1, 2012: Wharton Professors comment on the demise of Kodak. What’s Wrong with This Picture: Kodak’s 30-year Slide into Bankruptcy

Posted on Aug 11, 11

Does Microsoft have Game Changing Device with Kinect

From NY Times:

Microsoft has long salivated over the notion of controlling the living room and becoming a major entertainment force. Kinect may well stand as its best bet yet for turning that vision into a reality. “This is an incredibly amazing, wonderful first step toward making interactivity in the living room available to everybody,” says Mr. Ballmer, while cautioning that Microsoft still has “a lot of work to do.”

The first Kinect prototype cost Microsoft $30,000 to build, but 1,000 workers would eventually be involved in the project. And now, hundreds of millions of dollars later, the company has a product it can sell for $150 a pop and still turn a profit, Mr. Mattrick says. (People who don’t have an Xbox can pay $300 for a package that includes the console, Kinect and a game.)

For Mr. Ballmer, Kinect is far more than a business opportunity or a pleasant diversion for consumers. It offers a moment to prove to investors and company directors that Microsoft is capable of an Applesque, game-changing moment under his leadership.

Read Full Story

Posted on Oct 24, 10

Dramatic Challenge to Barnes & Nobles Business Model

This one of the most vivid examples of challenges to the existing business model of a firm. The Wall Street Journal reports:

After nearly 17 years of consistent growth, Barnes & Noble is stumbling. Revenue fell 3% to $5.12 billion for the fiscal year ended Jan. 31, 2009, while earnings dropped about 45% to $76 million.

When it launched the iPad last month, Apple championed a new approach to e-book pricing. Earlier this year, most large publishers agreed to establish a so-called agency model, where the publisher receives 70% of the digital price while e-book sellers act as agents and receive 30%. While some best sellers remain at $9.99, many major authors are priced at $12.99 or $14.99.

More...

Posted on May 21, 10