But in what ways, exactly, did these two companies fail to innovate?
By Christian Sarkar on May 18, To the millions of lives and memories touched by Kodak over the years, the news may have come as a huge surprise. Now, customers, both new and experienced, were choosing to bypass Kodak altogether.
Simply put, Kodak had nothing to offer them; nothing valuable enough anyway, for them to stay. How did a company that once owned the hill tumble down and lose its crown? Kodak was the Apple and Facebook of its day because Eastman understood what customers valued.
He realized that technology could change markets - overnight. And of course, that is precisely how he started Kodak - by creating the dry-plate technology which made photography accessible to all.
But Eastman could have easily failed to see the significance of the new. He could have stuck to his profitable business model, hypnotized by the massive profits his dry-plates produced for Kodak. He could have failed, but he did not.
In fact, he bet the company not once, but twice, and both times he won because he kept stuck with his imagination - he clearly had the capability to envision how the right technology could transform the customer experience for the better.
The first time Eastman bet the company was when dry-plates were threatened by a new technology.
Eastman gave up on his dry-plate business to pursue a promising new technology developed by Kodak - film. Eastman built the Kodak empire on a deceptively simple " razor and blades strategy ," selling inexpensive cameras and making money on the back end on film and printing.
The inexpensive business historian known as Wikipedia tells us that the problem with Kodak was that its "unassailable competitive position would foster an unimaginative and complacent corporate culture. But this time Kodak was no longer the Kodak of George Eastman.
As Sasson desperately wandered around the company trying to convince senior executives of the potential of his discovery, he was met with the mindset of a company in love with the present.
Sadly, there were no George Eastmans left at Kodak.
His presentations "met with a lot of curiosity, some annoyance. At the time of its bankruptcy filing, Kodak gave several reasons for taking such drastic action: The "razor and blades" business model had evaporated. Without profits driven by the sales of film, Kodak was in a black hole of its own making.
Two other fatal flaws can be observed in hindsight. The second fatal flaw was, in my view, the mindset of the executive team. Whitmore was a hardliner - a veteran of the traditional film business. Samper the digital "hope" left to join Sun Microsystems. Three years later, the board fired Whitmore, and then went on to institute a revolving door policy which saw a line of CEOs fail one after the other.
To this very day, Kodak has an identity crisis: The current Chairman and Chief Executive Antonio Perez is an HP printer executive, and has predictably steered Kodak toward consumer and commercial printers.A multinational corporation whose name and film products are familiar to photographers around the world, Eastman Kodak Company is a diversified manufacturer of equipment, supplies, and systems in consumer and professional imaging, including films, photographic papers, one-time-use and digital cameras, printers and scanners, .
There are a few, but many of the world's top companies in have foundered, shrunk, grown obsolete, or been acquired by rivals that grew stronger.
Companies that don't keep up with market-changing innovations run the risk of going bankrupt. We look at some examples.
After being taken down twice by Blogger within a single week, we got the message: It’s Time To Go. Gates of Vienna has moved to a new address. Eastman Kodak Co.
is often used as an example of a market leader that failed to recognize the writing on the wall. After decades of being the undisputed global leader in all-things-photography, it filed for bankruptcy in But how could this happen to such a giant? Jan 23, · For 40 years, you couldn’t walk through Grand Central Station in New York without admiring the Kodak Coloramas.
These 18x60 foot photographs showcased the Kodak brand to commuters, highlighting.