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Success is never a destination - it is a journey (Satenig St. Marie) and in that respect is a company that understands that journey. Kodak has been around for many years providing families around the world with innovative and high quality products. Many homes worldwide recognize and associate direct with the Kodak name. The company ranks as a premier multinational corporation, with a brand recognized in virtually every country around the world (Kodak History). However, the changes in technology create a dilemma for Kodak. The companys considerations for digital imaging will change its long history with 35mm film production. Will the fracture from 35mm to digital imaging affect Kodaks successful journey? To find an answer to this question, we must analyze Kodak from an economic perspective. An economic perspective views many incompatible factors and determines whether it is in Kodaks best interest to pursue digital imaging, will give enough evidence to support a rational decision . The era of digital photography is well under way. After surpassing sales of film cameras in 2003, the demand for digital devices in the US and other developed markets continues to swell. check to market research firm IDC, during the first nine months of 2004, U.S. shipments of digital still cameras grew by close to 50%, vs. the same period in 2003. Conversely, we think U.S. shipments of traditionalistic film cameras declined at a double-digit rate in 2004, and we expect a similar drop in 2005 (Stice). With the technology currently open, digital photography holds several(prenominal) major advantages over traditional film photography. The benefits can be categorized by cost, time, and versatility (Bhatia). Kodak wisely restructured its manufacturing to remain a strong competitor in the manufacturings market demand for traditional 35mm film. Film cameras are slowly declining in existing markets. Kodak takes full advantage of the situation by shifting its center focus to the inc reasingly demanded digital imaging technologies. But since emerging markets continue their demand for traditional products, an efficient number of production factors are still available in China and India, where Kodak will continue service and support products for existing markets. Their strategy is to fill the profit gap left from traditional product sales losses with sales gains from the new digital products plus gain top market share. In 2004, Kodak Operating Systems (KOS), charged with Kodaks Manufacturing and Logistics, began making manufacturing plans to restructure decisions as they realized the opportunity costs of having un- or under-used factors of production at PPC1 (See Fig.