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The Eastman Kodak Company, which commonly known as Kodak is an American company
which focuses on imaging, photographic and equipment. Kodak Eastman was founded in
1888 and that time KODAK camera was launched into market in that time with their slogan
You press the button, we do the rest, as the same time Kodak become very well-known and
successful since they invented roll film from glass photographic in 1888 which have been
widely used across the glove (Kodak, 2016).
In early 1976, Kodak able to monopolized films industry in United States because of its as it
used to have the highest percentage share which is 90% in film market and 85% of camera
sales. (The Economist, 2012). But eventually, Kodak was starting to struggle when
globalization came with the new type of photography which is digital at that time. Although
its strange, at that time Kodak already foreseen that digital is the future of photograph but
failed to change for the upcoming technology. The one who invented digital camera for the
first time is Steve Sasson which is one of the Kodaks employee in 1973 that introduce it to
Kodaks high executives, business, marketing and technical development that later (The
Australian Financial Review, 2015) and the camera. Yet, Kodak did not want to invest the
digital camera because they consider that if they place the digital camera in the market, it
would kill their films sales which can reduce their sales. Kodaks unwillingness to change
and adopt to the environment pace is the main reason why they filed for their bankruptcy in
2012. (The Australian Financial Review, 2015).
This essays will cover about Kodaks strategic decision failure towards the environment
changing which led them to bankruptcy. Some concepts and theories will also be
implemented to describe how Kodak respond to change, which later followed by
recommendation and conclusion.
Digital photography
o Digital photography offered consumers a better value but one wiped out a
decent way for Kodak to make money.
o Digital film Flash Memory was allow margin proposition even if you had
the huge gaps needed to produce it. And even though Kodak was number two
in digital cameras by 1999, it lost $60 on each one it sold.
o In one of many bids to replicate its silver halide business model In digital
photography, Kodak offered a photo cd film-based digital imaging product
but since it was priced at $500 per player and 20 dollar per disc it did not
attract many customers.
curves.
Digital technology is modular which means that a good engineer can buy all the parts
that are needed and create a camera by it own. It does not need sp`ecialized skill or
experience to do it.
In the past managers had two choices for implementing fundamental change, they
environment
Revolutionary change process
o Generate significant internal conflict because they challenge employees basic
assumption about the very nature of the firm
o Need to create from blank page, companies are not blank page, they are full
Recommendation
Conclusion
(Reger, 1994)
Bibliography
Athukorala, R., 2013. How Did Kodak Kill Itself?. [Online]
Available at: http://www.thesundayleader.lk/2013/05/05/how-did-kodak-kill-itself/
Cohan, P., 2011. How Success killed Eastman Kodak. [Online]
Available at: http://www.forbes.com/sites/petercohan/2011/10/01/how-success-killedeastman-kodak/#52e5508e4d86
[Accessed 11 September 2016].
Kodak, 2016. Kodak. [Online]
Available at: http://www.kodak.com/country/US/en/corp/kodakHistory/1980_1989.shtml
[Accessed 11 September 2016].
Kodak, 2016. Kodak.com Milestones. [Online]
Available at: http://www.kodak.com/ek/us/en/corp/aboutus/heritage/milestones/default.htm
[Accessed 11 September 2016].
Mendes, G., n.d. What Went Wrong at Eastman Kodak?. The Strategy Tank.
Reger, R. M. J. G. L. D. S. &. a. e., 1994. "Creating earthquakes to change organizational
mindsets". The Academy of Management Executiive, 8(4), p. 31.
The Australian Financial Review, 2015. In 1975, this Kodak employee invented the digital
camera. His bosses made him hide it.. [Online]
Reger, R.K., Mullane, J.V., Gustafson, L.T., DeMarie, S.M. & al, e. 1994, "Creating
earthquakes to change organizational mindsets; Executive commentary", The Academy of
Management Executive, vol. 8, no. 4, pp. 31.
Cohan. 2011. How Success Killed Eastman Kodak [ONLINE]
Retrieved
from:
http://www.forbes.com/sites/petercohan/2011/10/01/how-success-
killed-eastman-kodak/#52e5508e4d86
Fandel, J. (2007), George Eastman and the Kodak Camera, Capstone
Athukorala. 2013.
http://www.thesundayleader.lk/2013/05/05/how-did-kodak-kill-itself/
http://www.afr.com/technology/in-1975-this-kodak-employee-invented-the-digital-camerahis-bosses-made-him-hide-it-20150813-k9zo8