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What Went Wrong for eastman Kodak?
Pages 5 (1255 words)
Kodak’s demise is an example of repeat strategic failure in the three ways. To begin with, the company was slow in understanding the future of digital imaging. …
Thirdly, Kodak was unable to make the new digital technology to fit coherently with its other capabilities as a core competency. In the subsequent paragraphs in this discussion, Kodak’s approach in these three strategies is compared with IBM’s in order to highlight the ultimate failure of the former and the success of the latter. Kodak rise to dominance in the imaging industry was characterised by it use of a razor-edged strategy. This strategy was implemented by selling cameras at a very low cost, and earning profits from the sale of expensive films. The high margins on film fuelled the company’s profitability and growth to the extent that the company became too dependent on its film business. The problem with this is that the company concentrated on acquiring core competencies on film technologies while it continued to pay less attention to equipment. In spite of pioneering in the field of digital cameras, the company discarded the idea of pursuing future competitive advantages in that field because of the fear that this would cannibalise its film business (Nate, 2012). ...
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