Caution: Kodak’s comeback may not be picture-perfect
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Kodak is one of those brand names people of a certain generation will remember, and those younger might not.
Back in the days of yore, when you had to take the roll of film out of your camera and get it developed, Kodak was the photography company. But it didn’t survive the digital era, declaring bankruptcy in 2012.
Now, in an unusual turn of events, it has been summoned to help produce pharmaceuticals related to COVID-19 treatment.
Until about 10 days ago, Kodak’s place as a household name was going the way Blackberry and Blockbuster did. Then the Trump administration gave Kodak $765 million to produce chemical ingredients for COVID-19 treatments.
Rosabeth Moss Kanter, professor of business at Harvard Business School, said it’s not as weird as it might sound.
“Photography, I think, when it was invented was all about chemical baths, so Kodak had chemical roots,” she said.
But many are raising their eyebrows. Like medical chemist and science writer Derek Lowe, who’s suspicious of what’s being heralded as Kodak’s big comeback. He said the company will have to compete with a global, and possibly cheaper, supply chain.
“Production for generic drugs is not exactly the path to riches,” Lowe said. “They are going to be hard-pressed to produce a lot of these things at any kind of price that can compete with what we get now with offshore supply.”
It’s hard to imagine this in the age of the selfie, but photography used to be something for special occasions and important people. Kodak became a household name because it made photography accessible to everyone.
Kamal Munir, professor at Cambridge Judge Business School, has studied Kodak. He said it didn’t just sell photography. Kodak was photography.
“In their heyday, they had close to 70% of the global market share of film,” he said.
And Kodak’s failure to adapt to the smartphone era made it a relic. But will the pandemic change that?
Some are having a hard time picturing it.
COVID-19 Economy FAQs
Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?
This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.
Could waiving patents increase the global supply of COVID-19 vaccines?
India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.
Can businesses deny you entry if you don’t have a vaccine passport?
As more Americans get vaccinated against COVID-19 and the economy continues reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.
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