Business & Economy

How did Kodak drop its business in the market?

With the latest technology and revolutionary changes in the technology, Kodak had missed its
opportunities in digital photography. Due to newly invented technologies, the business of Kodak
had to decline its sales in the market gradually. This strategic failure directly affected Kodak, and
the decline in digital photography, and film-based business models in the market.
Background of Kodak –
1889 – Eastman Kodak Company and Kodak camera was founded by George Eastman. As years
passed on, Kodak cameras became successful in the market.
1935 – Kodachrome was introduced by the company and made its benchmark as the first color
materials that are used for both photography and cinematography.
1962 – suppressed in Kodak sales for $1 billion.
1963 – the company sold 50 million Instamatic cameras. This process is made easy for amateurs.
1966 – Kodak sales were suppressed by $2 billion.
1972 – worldwide Kodak’s sales passed by $3 billion.
1975 – the digital camera was invented by Steve Sasson, an engineer.
1976 – Kodak’s competitors increased and it became more dominant to others in the market.
1981 – sale topped up to $10 billion
1984 – customers suddenly shifted to fuji because the Japanese color film was 20% less than
Kodaks.
1991 – a journey of Kodak’s digital camera.
1991-2011 – Kodak kept on introducing the new products of digital cameras, but the sales of
kodak kept falling.
2012 – Kodak filed for bankruptcy.
The success story of Kodak –
The founder of Kodak, George Eastman believed that, making photography available to
everyone, according to their changes looking forward to taking photographs. This bought the
unique idea in the mind of Eastman and developed a new and innovative Kodak camera. He
made it possible for those who were passionate about photography. The company fulfilled the
founder’s purpose and supported his inventions throughout the decades. The company adopted
the strategy of razor and blades business model, where they thought that if they sell the product for lower price or offer the free order in case of increasing sales of a complementary good. But
finally, this strategy hit them back and fell gradually.
Three main reasons for Kodak diminishing in the market according to the analyst –
● Failed in re-invention
● Complacency
● Lack of organizational agility
What message does Kodak intend to the world?
● Transformation of view on the business model, strategy, and innovation management
● Being prepared for competitive advantage and to shift to another product as it makes
radical changes and revolutionary
● Avoiding complacency
● As companies develop strategies to adapt the agility.

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