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In computer news this week  9/06/2006

 

 

Traditional American companies get bit by the razor blade strategy ....

 

The Gillette safety razor company years ago unknowingly coined a marketing phrase studied in business schools, known as the “razor blade marketing strategy”.

 

This refers to the fact that the company sells its razors cheap, and actually makes most of its money selling the consumable razor blades that are used in the razor. A guy might buy one razor and use it for years, ok maybe decades like some of us packrats,  but during that time he’ll buy hundreds of razor blades.

 

Another American corporation that had a similar strategy was the Eastman Kodak company, whose name is synonymous with the Brownie cameras that many of us grew up with. In the traditional photography marketplace; Kodak had almost a triple razor blade strategy. They sold the cameras cheap, and made money off  selling the film,  selling the photographic paper,  and doing the film developing.

 

But somehow – although  Kodak looked for other businesses to expand into, technology delivered a staggering blow to its own industry, and it was been forced to make severe layoffs in its work force.

 

It was the technology of digital photography; cheap high quality cameras that didn’t use any film at all, just computer memory.

 

I think digital cameras really took off in the early 1990’s, I can remember buying my first one at Costco almost as an impulse item, as it was fairly inexpensive and suited my needs for a very long time.

 

So as soon as digital cameras became popular, people did 3 things – they stopped buying  film, they no longer had the need to have their pictures developed, as they could do that themselves, and they slowly learned that if they actually wanted to print out a picture, they could buy High quality photo paper at a discount store for a heck of a lot less than taking them to a photo processing place. And although Kodak came out with its own digital cameras, so did dozens of other companies.

 

This brings up a couple other technology issues:

 

1. why print photos out? 

 

The computer screen is the leading place in the world to view photos, so why are you still so old fashioned needing that physical printout. I can see a couple wallet size ones of the wife and kids, but you can easily do that yourself, and Windows has wonderful and dummy proof photo-printing capabilities.

 

and 2. Stop sending these through the internet – put them on your website – every ISP gives you some web space – and send links to these pictures to your relatives – not the pictures themselves.

 

So I’m worried about the future of the Kodak company, but not for the obvious reason.

 

My concern is that someday some mountain climber on Mount Everest will actually find the camera that George Mallory supposedly carried to the peak Mallory's Kodak Camera  in 1924, which might prove he was the first to summit.  I’ve read that it’s possible the film could be perfectly preserved in the cold atmosphere. 

 

But what if they find that camera, and take it to the experts at Kodak, and there’s no one there anymore?

 

 

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This is Frank Delaney

(C) 2006 MTA Micro Technology Associates

http://www.mtamicro.com/kpbx.html

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