Why Kodak Fail?

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Kodak took an initiative to resonstruct itself and transform with the digital age from traditional film to digital imaging. Firstly, even if Kodak was America’s number 18th biggest company by revenue, during the first decade of this century its operating losses totaled $3.8 billion. Kodak had reached its maturity stage of the product life cycle (Grant 2010 p210). The combination of two factors; consumers beginning to adopt new products and technologies, as well as Fuji, one of Kodak’s low-cost competitors penetrating the market, film had fallen into its deline its stage (Grant, 2010 p210). PRODUCT LIFE CYCLE The good thing was, that eventhough Kodak was threatened by the new digital photography, it was still estimated to be a while longer till it actually began to happen. It was this transition period that Kodak was bidding on. They would exploit their existing resources and know-how until their chemical capabilities would be made obsolete. The Kodak case tells us that as late as 2001, the vast majority of photographic images were still captured on traditional film. However, Kodak was a late mover, they did little to prepare for when digital photography would eventually replace film. Kodak used a hybrid approach to this problem; to use digital photography to improve film like CEO George Fisher in 1995 said himself, that Kodak was making, “step by step progression of enhansing photography using digital technology”. All this would happen simultaneously to developing new digital products, entering new possible markets and increasing their acquisitions and alliances. Kodak’s core competencies turned into core rigidities. In terms of design, Kodak made the first simple camera in 1888, it transformed something complicated to simple. This was an important innovation of the time and showed great/ unique technical skills, but the rapid decrease in film, and

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