![]() ![]() ![]() The organization overflowed with complacency. John Kotter in Barriers to Change: The Real Reason Behind the Kodak Downfall: Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business. Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. They frequently divert sufficient resources to participate in emerging markets. Companies often see the disruptive forces affecting their industry. Anthony in Kodak’s Downfall Wasn’t About Technology: Sharifah Khairin Syed Mohd Ali, in Kodak Strategic Blunder (SlideShare) Here are 3 Reasons for Kodak’s Demise according to Analysts: 1. Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one. Learn more: The Story of Instagram and WhatsApp Founders leaving their Facebook-acquired Companies In 2012, when Kodak was filing for bankruptcy, Facebook was acquiring Instagram, the new hot photo-sharing social network for $1 billion. Unfortunately, instead of going the Instagram way, Kodak used Ofoto to try to get more people to print digital images. Many years before Facebook, Kodak made a surprise business move and acquired a photo-sharing site called Ofoto in 2001. People went from printing pictures to storing them on digital devices or sharing them online on social media platforms. Smartphones took the world by storm and digital cameras producers saw their sales quickly spiralling down. ![]() It was discontinued in 2006 after 74 years of production.Īs it turned out, digital cameras were not the biggest fish in the pond. Kodak’s Kodachrome was the company’s leading sales item. The company’s core product was the film and printing photos, not the camera. ![]() How it worked: the clients would take photos with the Kodak camera and then send the camera to the Kodak factory where the camera’s film was developed, and photos were printed. Kodak’s business strategy followed the razor and blades business model where one item is sold at a low price or given away for free in order to increase sales of a complementary good, such as consumable supplies. While Kodak’s offer met its clients’ needs, the business model of the Eastman Company brought in the cash. Throughout the following decades, innovations and inventions ensued which supported the company fulfil its founder’s purpose. With the development of his new and innovative Kodak camera, Eastman made it possible for anyone interested in photography to take great pictures. The late 1980s - The rise of digital photography with analogue cameras sales decreasing and digital camera sales increasing.ġ984 - Customers switched from Kodak to Fuji because the Japanese colour film was 20% cheaper than Kodak’s.ġ991–2011- Kodak released various digital products, but sales kept falling.įirst of all, George Eastman set out to democratize photography.Įastman believed in making photography available to everyone, by changing the way people took photographs. The company sold 50 million Instamatic cameras in their first seven years.ġ972 - Kodak’s worldwide sales passed $3 billion.ġ975 - Steve Sasson, an engineer at Kodak invented the digital camera.ġ976 - Kodak became so dominant, they practically pushed their competitors off the market –Ĭameras: 85% market share, Film: 90% market share 1889 - George Eastman founded the Eastman Kodak Company and introduced the first Kodak camera a few years later the Kodak camera becomes wildly successful.ġ935 - The company introduced Kodachrome, the first successful colour materials and was used for both cinematography and still photography.ġ963 - The Kodak Instamatic cameras and cartridge loading films made the process easy for amateurs. ![]()
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