Stardate 20010613.0722 (On Screen): Polaroid's problems are extremely deep. For 60 years they've had an exclusive technology which permitted them to offer what no-one else could offer: instant pictures. They've continued to research the technology and it has unquestionably kept improving. But they got blindsided about five years ago by a completely new technology totally unrelated to what came before:
digital imaging. The semiconductor industry figured out how to make really large CCDs for small bucks, and CCD's have substantial inherent advantages over film in many regards. In particular, anything which can be done with Polaroid instant film can be done better with a CCD. So Polaroid has to move into the new area because their old one is doomed. Their problem is that they don't have any competitive advantage in the new realm of digital imaging except for an established name.
If they were coming into this with a substantial war chest, so that they could invest heavily in the new technology and survive through a few bad years, they'd probably survive the transition. But they're heavily in debt now and coming into the game late to boot. (Very late.) I don't think they're going to survive the transition. (discuss)
