The lesson from Kodak downfall
The Eastman Kodak Company or Kodak is an American technology company that produces camera-related products with its historic basis on photography. The company is headquartered in Rochester, New York, and is incorporated in New Jersey.Kodak provides packaging, functional printing, graphic communications and professional services for businesses around the world. Its main business segments are Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film. It is best known for photographic film products.
Kodak is founded by George Eastman and Henry A. Strong on September 4, 1888.During the 20th centuray Kodak is the last word for filim camera.
The George Eastman (July 12, 1854 – March 14, 1932) was an American entrepreneur who founded the KODAK CompanyHe was a major philanthropist, establishing the Eastman School of Music, and schools of dentistry and medicine at the University of Rochester and in London Eastman Dental Hospital; contributing to the Rochester Institute of Technology (RIT) and the construction of several buildings at the second campus of Massachusetts Institute of Technology on the Charles River. In addition, he made major donations to Tuskegee University and Hampton University, historically black universities in the South. With interests in improving health, he provided funds for clinics in London and other European cities to serve low-income residents.
In his final two years, Eastman was in intense pain caused by a disorder affecting his spine. On March 14, 1932, Eastman shot himself in the heart, leaving a note which read, “To my friends: my work is done. Why wait?he had been tinkering at home to develop it. In 1888, he perfected the Kodak Black camera, which was the first camera designed to use roll film. In 1889 he first offered film stock, and by 1896 became the leading supplier of film stock internationally. He incorporated his company under the name Eastman Kodak, in 1892.As film stock became standardized, Eastman continued to lead in innovations. Refinements in colored film stock continued after his death.
Henry A. Strong
Henry Alvah Strong (August 30, 1838 – July 26, 1919) was an American photography businessman. He graduated from Wyoming Academy in 1858. On August 30, 1859, he married Helen Phoebe Griffin. They had three children: Gertrude Achilles, Helen Carter, and Henry G. Strong. After Helen’s death in 1904 from diabetes, he married Hattie (Corrin) Lockwood, on June 14, 1905.He adopted her son, Corrin, and the family returned to Rochester, New York.
Short Timeline of Kodak’s Landmarks
1889 — George Eastman founded the Eastman Kodak company and introduced the first Kodak camera; a few years later the Kodak camera becomes wildly successful.
1935 — The company introduced Kodachrome, the first successful colour materials and was used for both cinematography and still photography.
1962 — Kodak sales surpassed $1 billion.
1963 — The Kodak Instamatic cameras and cartridge loading films made the process easy for amateurs. The company sold 50 million Instamatic cameras in their first seven years.
1966 — Sales surpassed $2 billion.
1972 — Kodak’s worldwide sales passed $3 billion.
1975 — Steve Sasson, an engineer at Kodak invented the digital camera.
1976 — Kodak became so dominant, they practically pushed their competitors off the market –
Cameras: 85% market share, Film: 90% market share
1981 — Sales top $10 billion.
Late 1980s — The rise of the digital photography with analog cameras sales decreasing and digital camera sales increasing.
1984 — Customers switched from Kodak to Fuji because the Japanese colour film was 20% cheaper than Kodak’s.
1991– Kodak’s first digital camera.
1991–2011– Kodak released various digital products, but sales kept falling.
2012 —Kodak filed for bankruptcy.(when Kodak was filing for bankruptcy, Facebook was acquiring Instagram, the new hot photo sharing social network for $1 billion.)
Downfall of legend Kodak
In 21st century world going to Digital revalution in all field but Kodak little bit back to accepet the digital revalution. But same time other companies like Fujifilim,Canon, Nikon are going with digital cameras.
So the slowly slwoly the kodak cameras revalution blinks. But the company thinks to enter to accept the digital changes but late to enter. so the company is although it was a late adopter while still selling analog cameras and film. Kodak developed a new business direction printers. The company focused on the printing industry building expensive printers and inexpensive ink while its competitors were making money from selling expensive ink.
Lesson from kodak
In forbes magasine 7 lesson teach the Kodak company are
- You have to develop new technologies and products, and not stick with what got you to the winner’s circle. This is true whether you are Research in Motion grappling with the rise of the iPhone and Android, or any of the old mini-computer makers centered around Boston’s Route 128 that couldn’t adapt to that crazy new idea, the PC. For Kodak, their dominance in film just wasn’t enough. Like Motorola, like Polaroid, the world shifted from analog to digital and Kodak had to shift with it.
- But wait a minute. Wasn’t Kodak always one step ahead of the competition in film technology? Didn’t they invent the digital camera? In fact, like Motorola in digital cell phones, Kodak was an early player, but they could never get it to stick. It is reminiscent of what happened to another Rochester, NY company, Xerox, and their brilliant stream of inventions at the Palo Alto Research Center (PARC) years ago. Xerox invented the first computer mouse, the first Ethernet, the first graphical interface operating systems for PCs, the first laser printer. But it turns out that invention without execution is not enough. With the exception of the laser printer, Xerox was never a big enough player in any of the businesses that emerged from these inventions. And Kodak was never able to beat the Japanese digital camera manufacturers, despite their early leading position. A sad story, because Kodak had the raw materials to become a player in the new digital world, but they couldn’t execute on it.
- It is even more difficult to expand into “adjacent” businesses where you have some expertise, but where many of the customers and products might be different. Or the rules of the game are different. Could Kodak have become Flickr? Could Kodak have moved into social media and created an online presence where people could share experiences and photos? Could Kodak have even become Facebook? The answer is no. The entire mindset of business is different, the business models are different, the history and culture of the companies is different.
- Diversifying into unrelated businesses when you have traditionally been focused on your core is always a bad idea. This is what happens when companies run out of good ideas. They get the crazy notion of investing free cash flow into unrelated industries where they have no expertise to compete, and they lose their shirt. Just like the tire industry in the 1980s, Kodak’s expansion into chemicals, bathroom cleaners and medical-testing devices only burned money they wished they had now.
- Over time, successful companies make decisions that are logical at the time, but create long-run barriers to change when the company’s natural growth ends. This is most apparent in the generous health and pension benefits provided to Kodak workers over the years. It makes sense to share the success of your business with the people who helped you make that happen – employees – but when things turn bad those benefits become obligations that you can no longer afford. But, like the GM before it, you still have to pay.
- There comes a time in a company’s history when it makes much more sense to sell the business while it’s still worth something than to try to turn it around. Very few companies ever do so. Why? Selling the company means the CEO and other top managers are out of business as well, and why do that when you have all the perks and pleasures of being at the top? I’m sure the folks at Blockbuster wish they sold out when they could.
- All companies die, just like people do. And like people, for most companies it’s very hard to accept this inevitability. Company founder George Eastman committed suicide at age 77, leaving a note saying, “To my friends, my work is done. Why wait?” If only the company had done the same years ago, more value would have been created for stakeholders.