Hidden reasons for kodaks digital revolution essay 1149 words 5 pages. Hewlett packards hp management plans to perform a merger between hp and compaq. Kodak could have been split in a manufacturing division, chemical division and a very profitable research division. Contrary to popular opinion kodak was ahead of the digital technology curve and they saw well ahead of time that digital photography was a game changer. The problem was that for over a century kodak had the classic razor and blade business model i. Scribd is the worlds largest social reading and publishing site. Kodak, along with several others, does dominate the digital camera market, but profits are slim to nonexistant, and manufacturing has been outsourced. Kodak was the only one that developed many of the components of digital photography, yet the new form of. Why did kodak fail and what can you learn from its demise. Kodak and the digital revolution a strategy management case submission kodak and the digital revolution a ques6on. After discussing kodaks history and its past strategic moves in the new landscape, the case kodak and the digital revolution questions how ceo daniel carp can use digital imaging to revitalize kodak. The official history of the company, headquartered in rochester, new york, kodak invented in the 1880 dryplate formula and a. We obtained annual reports from kodak and searched the literature to build an historical time line of the key events in digital photography and kodaks response to this new technology. The stock declined from around 80 dollars to 3 usd in less than ten years.
Kodak please do not distribute without my permission required reading hbp case. Kodak and the digital revolution a case solution, the introduction of digital imaging in the late 1980s had a deleterious effect on traditional business model of kodak. Stay connected to your students with prezi video, now in microsoft teams. A case study of kodak business essays essay sauce free. Kodak and the digital revolution case solution and. Kodak and the digital revolution a business model failure. It is striking how kodak has suffered since the rise of digital imaging. Kodak is a multinational american corporation which has become a household name most known for its film products. During 2011, kodak was under intense pressure to survive in the digital imaging business.
We address the issue from the view of new digital companies. It appears that core competencies that were responsible for kodak s success in the past turned into core rigidities that inhibited its response to digital photography, particularly in the ranks of middle managers. Bullet point summary of kodak and the digital revolution a case study critical issues surrounding kodak include the following. The company has come face to face with many changes due to the digital revolution which has created a rapid changing photography industry. They believe that the merger would benefit both companies that were struggling to perform in such a competitive market and therefore,in order to survive they have to grow. Kodak stunning journey of fortune to misfortune a case study financial analysis. Case analysis since the early 1880s, kodak had proven themselves to be great innovators and had worked on building their brand on a domestic and international front. The major kodak products include colorburst, kodamatic, kodak dcs 100 and dcs dslr, digital picture frames such as the kodak smart picture frame, image sensors in digital cameras such as the leica m8 and the kaf10500 image sensor, document imaging and scanners as well as movie pictures and tv production kodak 2010. Kodak and the digital revolution a case analysis, kodak and the digital revolution a case study solution, kodak and the digital revolution a xls file, kodak and the digital revolution a excel file, subjects covered business models corporate strategy disruptive innovation by giovanni gavetti, rebecca henderson, simona giorgi source. The company badly loses its sales volume as well as its market share. The moment it all went wrong for kodak the independent.
Kodak was in a position that if it had acted differently, and taken the lead in digital imaging, the market would have been theirs to take, and they could be the market leader or the only brand, had the company adopted a different digital imaging strategy in the 80s and 90s. Kodak has a small share of the printer market through a. Digital disrupted the companys equilibrium in two crucial respects. One option could have been to break up the business. In 2001, kodak established the easy share system, which was intended to provide its customers with an easytouse digital experience. The introduction of digital imaging in the late 1980s had a devastating impact on the traditional business model of kodak. Kodaks business was based on the famous razorblade model where they would sell cameras cheaply and make huge profit margins on the consumables, the films this model so deeply rooted in kodaks company culture that it. Kodak and the digital revolution pic picpicbrief overview. Film is a physical, chemical product, and despite a succession of new ceos, kodaks middle managers were unable to make a transition to think digitally. Kodaks middle managers, culture and rigid, bureaucratic structure hindered a fast response to new technology which dramatically changed the process of capturing and sharing images. Kodak and the digital revolution a case study solution, kodak and the digital revolution a case study analysis, subjects covered business models corporate strategy disruptive innovation by giovanni gavetti, rebecca henderson, simona giorgi source.
Kodak and digital revolution digital camera digital. The research reported here comes from primary and secondary sources. George eastman began kodak in 1880 and introduced the first. Popular perception is that kodak didnt even enter the consumer digital tech business until the mid 1990s with the release of the kodak dc25 compact digital, but thats incorrect. However, kodak filed for chapter 11 protection on january 19, 2012. Why kodak missed the digital revolution after starting it. Kodak case study part 1 eastman kodak meeting the digital challenge. The company employed 140 000 people in 1988 today around 20 000.
With due respect to dr shihs perspective having joined in 97, it was the years leading up to that, when kodak squandered what could have been a dominant position in digital imaging and possibly online social media, due to lack of vision of what was clear to the engineers. In kodaks case, management did a reasonable job of understanding how the parts of the enterprise including its photo finishing partners interacted within. Kodak, however, didnt see the potential in the digital camera early and couldnt capitalise on the invention. The reasons for kodaks failure are analysed in comparison to fujifilm, the largest japanese filmmaker.
Kodaks last chance for survival a recommendation on strategic direction. Kodak and the digital revolution a case solution,kodak and the digital revolution a case analysis, kodak and the digital revolution a case study solution, the introduction of digital imaging in the late 1980s had a devastating impact on the traditional business model of kodak. Hewlettpackardcompaq the merger decision case solution. The invention of the digital camera in 1975 by steve sasson, one of the kodak s engineers was part of intensive investments in research and development and portrays how innovative the company was back then. Kodak and digital revolution free download as word doc. In real life, unfortunately, kodak used ofoto to try to get more people to print digital images. Although it was a pioneer in the technical aspects of digital imaging. Kodak became the first company in online imaging store and photofinishing in 2001 by buying ofoto. Kodak and the digital revolution table of contents. All you wanted to know about how to write a case study. Decline in kodaks market share from 76% to 70% over 5 years 1989 1994 8% decline in kodaks stock due to rumored price reduction in. Firstly, it shifted meaning associated with cameras and secondly, digital devices. Examines kodaks strategic efforts and challenges as the photography industry evolves. Kodak is considering strategic efforts and challenges as the photography industry evolves.
Carestream drxrevolution mobile xray system helps enhance patient care university health system selects drxrevolution as its mobile imaging platform for the future pdf indiana hospitals four drxrevolution systems help enhance icu diagnosis pdf carestreams cr, dr systems help st. None of the kodak ceos could reconcile the digital and photo print businesses. Kodak and the digital revolution a introduction so far, weve seen how digital innovation has fundamentally changed the way companies organize their business activities. Eastman kodak companys strategy 4998 words report example.
In an industry where nnovton and dffrntton are the keys to success. Kodak stunning journey of fortune to misfortune a case. All you wanted to know about how to write a case study eastman kodak case study simplicity. Eastman kodak kodak was the largest photographic filmmaker in the world, established in 1880 and representative of us firms. Kodaks failure to adapt to the new technology stands in stark contrast to fanucs case because kodak had greater resources in terms of its brand reputation, its finances and its technological prowess in digital imaging. Kodak and the digital revolution a case solution and. Kodak was investing in the new digital technology that it has contributed to create, but without taking advantage of its early start and its resources. In kodaks case almost a centurys experience in film inhibited rather than facilitated a shift to new technology. As professor burley describes, kodak was caught in a perfect storm of not only technological, but also social and economic change neate, 2012.
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