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The history of kodak essay
Kodak and the Digital Revolution (A)
The rise and fall of eastman kodak
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George Eastman founded the Eastman Kodak Company in 1888, and pioneered the photography industry with new technology that would help bring photography to the mainstream. After its inception, Kodak created what many called a "monopoly" in the photography industry. Both in 1921 and in 1954 the company had to endure a consent decree imposed by the US Government in which it was concluded that Kodak monopolized the market in violation of the Sherman Act (the first and oldest of all US federal, antitrust laws). Kodak settled the 1921 decree and agreed to be bound by restrictions. The Company was barred from preventing dealers from freely selling goods produced by competitors. On the other hand, the 1954 decree prevented Kodak from selling a bundle that included the color film and the photofinishing, among other restrictions. This tying arrangement of products is an agreement by a party to sell one product on the condition that the buyer also purchases a different (or tied) product, or at least agrees that he will not purchase that product from any other supplier. In this case, Kodak was selling the photo film while conditioning the buyer to also buy the photofinishing product (because it was included in the price). Both decrees had supporting evidence of the high market power that Kodak had at the time, for which both cases were based.
The conventional definition of market power is usually expressed as "the power to raise price." A company with market power has some amount of discretion to set its own price. Others can define market power as the power to force a purchaser to do something that he would not do in a competitive market, and have ordinarily inferred the existence of such power from the seller's possession of a predominate share of the market (Eastman Kodak v. Image Technical Servs, 1992). Market power could also be defined as the power profitably to raise or maintain price above the competitive benchmark price. The competitive benchmark is the price that would prevail in the absence of the alleged anticompetitive conduct. This benchmark price often differs from both the current price and the perfectly competitive price (Salop, Steven C, 1999). In economics, market power is the ability of a firm to alter the market price of a good or service (Wikipedia). A firm with market power can raise price without losing all customers to competitors.
First the story of the Standard Oil Company briefly describes the limits of power. When Rockefeller was trying to take over the market he formed the “South Improvement Plan. When this occurred the public grew very angry with the price of trains, so nobody went on the railroads and Rockefeller eventually got the bill, until prices changed. This is an example of how the consumers, make the company run and when nobody wants to buy your product the individual must adjust. Another example would be when the Standard Oil Company was primarily the only oil company and was forced to split into thirty nine different independent companies. This shows that one business cannot control the entire market and interventions will need to be done accordingly so that a company does not have all the power.
During the nineteenth and twentieth century monopolizing corporations reigned over territories, natural resources, and material goods. They dominated banks, railroads, factories, mills, steel, and politics. With companies and industrial giants like Andrew Carnegies’ Steel Company, John D. Rockefeller’s Standard Oil Company and J.P. Morgan in which he reigned over banks and financing. Carnegie and Rockefeller both used vertical integration meaning they owned everything from the natural resources (mines/oil rigs), transportation of those goods (railroads), making of those goods (factories/mills), and the selling of those goods (stores). This ultimately led to monopolizing of corporations. Although provided vast amount of jobs and goods, also provided ba...
Korematsu v. United States (1944) actually began December 7, 1941 with the Japanese attack on Pearl Harbor. The attack on Pearl Harbor then began the conquering of Wake, Guam, Philippines, Malaya, Singapore, Dutch East Indies, New Guinea, Solomon Islands, and Burma. With the attack on Pearl Harbor, racism, which was hardly unfamiliar, became an even greater problem. The Japanese Government's attacks on Americans including; torturing, raping, and murdering was an excuse for Americans aversion towards the Japanese. Public officials began to lock up the Japanese people simply for their own good, for protection against the hate crimes.
Many companies and individuals have committed monopolies before they were considered illegal and afterwards. A monopoly is when one person has complete control over a company and makes close to 100% of the profits. Since The Sherman Antitrust Act passed on April 8, 1890, “combination in the form of trust and otherwise, conspiracy in restraint of trade;” monopolizing an industry became outlawed. In simple terms the act prohibited any forms of monopoly in business and marketing fields. Monopolies committed before the Act, at the time, legal, but unethical, some famously known marketers like John D. Rockefeller became extremely wealthy. While others took full control of corporations after The Sherman Antitrust Act caused a firm like Microsoft
The power of a government-created monopoly over the market depends on the existence of close substitute products. If people view emeralds, rubies and sapphires as quite worthy substitutes diamonds over the market power of a relatively limited. In this case, any attempt to achieve increase of diamond prices will lead to the fact that consumers will switch to the acquisition of other precious stones. But if people believe that these stones are considerably inferior diamonds, the company is able to significantly affect the market price of the latter.
Power is authority and strength, which is any form of motive force or energy, ability to act, or control. When too much power is given, a dictatorship government can form, in which all decisions are made by one authority. In the book Animal Farm, by George Orwell the author portrays how “Power tends to corrupt and absolute power corrupts absolutely” (Lord Acton).
Power simply can be defined as control over resources. This control allows for individuals to bring about change. The influence of power typically has a negative impact on individuals. It has even been said that “Power tends to corrupt, and absolute power corrupts absolutely.” Typically, as an individual gains power they tend to be less inhibited and act more based on their personal desires disregarding what is ethically right. Oftentimes, individuals lose sight of their morals in attempts to gain more power and exploit other people. Indeed, it is true that “with great power comes great responsibility” and whether an individual lets that responsibility corrupt them is a strong measure of their personal character (Ferguson and Peterson,
(#7) Power is the ability to get what you want despite the resistance of other people (lecture notes, Soboroff). Power is coercion, and excludes from valued resources (lecture notes, Soboroff). Power is doing something wrong and knowing you can get away with it if you get caught. Power is having people do things for you because they want to impress you because you have power over them. Power is something that people have that shows everyone that they matter and get what they
In market choice consumers carry the power. Consumers demand products through their willingness and ability to purchase products. As a result of their demand, firms supply or produce goods to satisfy consumers. Both supply and demand can be graphed on supply and demand curves with price as the independent variable and quantity as the dependent variable. The demand curve follows a negative slope, so as the quantity demanded increases price decreases. The supply curve follows an opposite, positive curve, as the quantity supplied increases, so does the price. Looking at both on the same axis we can recognize how supply and demand relate. To see the supply and demand curves for a product, we would look at the quantity supplied verses the quantity
In 1890 Congress passed the Sherman act with their first attempt at protecting businesses and consumers (FTC, 2008). This act was to touch down on monopolization and unreasonable trade. In order to protect consumers and businesses it was decided that monopolization; or the practice of controlling a single market, was an unfair act. Not only do monopolies have the ability to play with prices, but they can also decrease the quality of their products (Amadeo, 2013). For the consumer it could be unfortunate if, for example, the only supply of baby formula is controlled by a single company and the price increased by 40% after competition has been knocked out.
Power is a difficult concept to define conclusively or definitively however, Bourdieu explains power to be a symbolic construct that is perpetuated through every day actions and behaviours of a society, that manipulate power relations to create, maintain and force the conforming of peoples to the given habitus of that society (Bourdieu, 1977). Power, is a force created through the
When these large companies have too much power, they are able to completely run the market based on their own agendas. Should smaller companies still exist, the larger firms are able to lower prices and absorb the loss from it, where the other company would inevitably fail to compete with the low prices of the firm. Firms like Carnegie Steel and Standard Oil rightfully took advantage of the US free market at the time, but once word of their predatory practices became publically known, these companies received penalties from the federal government. In 1890, the Sherman Antitrust Act was the first mass legislation passed to address oppressive business practices and monopolies. This act was in response to the aggressive business tactics.
Power has been defined as the psychological relations over another to get them to do what you want them to do. We are exposed to forms of power from the time of birth. Our parents exercise power over us to behave in a way they deem appropriate. In school, teachers use their power to help us learn. When we enter the work world the power of our boss motivates us to perform and desire to move up the corporate ladder so that we too can intimidate someone with power one day. In Joseph Conrad’s Heart of Darkness Kurtz had a power over the jungle and its people that was inexplicable.
Power is the ability to control or influence others, especially socially or politically. We often hear of the horror stories, in which corrupt dictators with too much power kill innocent citizens, eliminate all competition, and hurt others for personal gain. Power itself is not necessarily the bad thing here; it comes as an instinctive need to humans, rooted in the primal purpose of survival (Anchor text). The abuse of power leads to corruption. Power is an unstable force that can have positive or negative outcomes, depending on why it was sought and the attitude of those on the receiving end of the control.
When buyers have the power to affect prices in an industry, it becomes an important factor to consider for a company. Buyers tend to have power over an industry if they are important to the company, this may be if the industry is such that buyers either buy in bulk, or can easily switch to another supplier (Martin, 2014).