Recently, everyone’s eyes have been turned towards Kodak and its struggle to stay in business. This is a historic comedown for a firm that has been holding a dominant position in photographic film for decades. Its brand name is still recognised all over the world.
The company once enjoyed a 90% market share and accounted for 85% of camera and 90% of film sales in America. The huge profits meant the firm could invest more in research and development. Unfortunately, extensive R&D contributed to Kodak’s fall as it ended up pioneering the very technology that threatened its survival. The digital technology was followed by the development of smartphones that destroyed Kodak’s old-film industry. The company was too slow to adapt to the changing trends as the shift to digital photography was massive and sudden.
In the 1990s when film sales collapsed Kodak tried its luck in different business areas. The researchers thought the chemicals created for use in film might be turned into drugs, however the idea failed to drive sales. Fujifilm on the other hand, Kodak’s long-term rival, adapted more successfully. The company invested in cosmetics and launched a line called Astalift that proved very popular in Asia. George Fisher, who served as Kodak’s boss in 1990s, also aimed to be make it a digital company, investing in imaging. He enabled people to post and share pictures online. However, he failed to see this idea through and develop it further (perhaps turn it into a social networking site). Furthermore, there is simply not enough profit in this ‘small business industry’ for a company as big as Kodak.
In the 1990s when film sales collapsed Kodak tried its luck in different business areas. The researchers thought the chemicals created for use in film might be turned into drugs, however the idea failed to drive sales. Fujifilm on the other hand, Kodak’s long-term rival, adapted more successfully. The company invested in cosmetics and launched a line called Astalift that proved very popular in Asia. George Fisher, who served as Kodak’s boss in 1990s, also aimed to be make it a digital company, investing in imaging. He enabled people to post and share pictures online. However, he failed to see this idea through and develop it further (perhaps turn it into a social networking site). Furthermore, there is simply not enough profit in this ‘small business industry’ for a company as big as Kodak. 
On 18th January Kodak filed for Chapter 11 bankruptcy protection. The firm hopes that it will be able to restructure and revitalise itself into a profitable business. It still owns an extensive portfolio of patents as well as valuable R&D knowledge. Therefore anything can happen under the new management providing that Kodak is ready to make a serious transformation.
Kodak’s faith can serve as a warning for other technological giants like Facebook, Microsoft or Google as no company should count on continuous success in this ever changing industry.
Cameras
Cameras
No comments:
Post a Comment