Archived posting to the Leica Users Group, 2004/09/06

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Subject: [Leica] Re: yo-yo marketing and film?
From: gregj.lorenzo at shaw.ca (GREG LORENZO)
Date: Mon Sep 6 11:51:16 2004

You wrote in part:

Ilford isn't in the same situation exactly, but being a large company having 
to contract capacity is never easy and can be fatal, especially if the 
company has been sold and the new owners have debt to pay off. In that 
situation, 
the market for the product almost becomes irrelevant because even if they 
are 
meeting their ongoing costs -- making more than they spend to produce the 
product -- the debt soaks up all the excess and then some, and it becomes a 
losing 
proposition.

 
Ilford?s financial situation is analogous with Air Canada?s. Air Canada 
attempted to monopolize the airline business in Canada, incurring massive 
unmanageable levels of debt in the process. The events of September 2001 
caused a sudden drop in air travel and Air Canada could no longer service 
that debt. Bad management didn?t help!

See: http://www.cbc.ca/stories/2003/04/01/aircan030401

Air Canada since then found a German Bank to back them with an infusion of 
cash, cut staff, salaries, etc. and are now back in the game providing 
Canadians with lousy service.

Regards,

Greg