# The Decline of Kodak: A Case Study in Disruption
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Chapter 1: The Kodak Legacy
Kodak, a name that may be unfamiliar to younger generations, was once a titan in the imaging technology industry. Founded in New York in 1892 by George Eastman, Kodak revolutionized photography with its slogan, "You press the button, we do the rest." This innovative approach made photography accessible to everyday families, shifting it from a professional domain to a leisure activity. By the early 1980s, Kodak had surpassed $10 billion in revenue, solidifying its status as the ruler of the photography world.
However, Kodak's reign began to wane with the advent of digital technology. As digital cameras emerged in the 1980s, Kodak, despite being the inventor of the digital camera, struggled to adapt. The company initially focused on the printing market, predicting a surge in demand for high-resolution photo prints. Unfortunately, by the time Kodak ventured into digital cameras, it was too late. Their late entry into this burgeoning market led to rapid declines in market share and ultimately paved the way for their downfall.
Section 1.1: The Shift to Digital
The rise of digital photography marked a pivotal moment for Kodak. The company, which had dominated the film industry, found itself outpaced by competitors who capitalized on the new technology. Kodak's failure to embrace digital photography until it was nearly too late illustrates a classic case of technological disruption.
Subsection 1.1.1: The Digital Camera Revolution
The digital camera market gained momentum throughout the 1990s, allowing consumers to take and retake pictures at will—an option that film cameras simply could not match. Despite Kodak's initial investment in the digital realm, their delayed response allowed competitors to capture significant market share, contributing to Kodak's eventual decline.
Section 1.2: From Digital to Social
As technology advanced further, the camera industry shifted once again, this time towards social media. By 2018, the number of new cameras shipped had plummeted to just 19 million, an 84% drop from 2010. This trend highlighted the growing influence of smartphones, which offered convenient and high-quality photography options that appealed to the masses.
Chapter 2: Management Failures and Bankruptcy
Kodak's management also played a crucial role in the company's demise. As late as 2007, executives were dismissive of the digital trend, stating that Kodak would not engage with the digital market. By January 2012, the company had exhausted its resources and filed for Chapter 11 bankruptcy protection, marking a significant turning point in its history.
In the wake of bankruptcy, Kodak ceased the production of digital cameras and shifted its focus to camera accessories and photo-printing services. Additionally, the company sold off numerous patents, including key digital imaging technologies, for over $500 million. By September 2013, Kodak emerged from bankruptcy protection, but the landscape of photography had changed irreversibly.
I hope you find this analysis of Kodak's rise and fall insightful. If you enjoyed this article, feel free to express your appreciation or join as a Medium Member through my referral link below.
About the author: Mike (MBA, CZT — Asia #11). A freelance art teacher always striving to promote art in Hong Kong. Connect with me on Patreon, Instagram, or Twitter.