Kodak's Slow Adoption Of Information Technology
Corporate history reveals only a few blunders that are as confounding as Kodak's wasted digital photography opportunities; what's more, Kodak was, in fact, the inventor of digital photography technology. The company's strategic failure stemmed directly from its decades-long weakening, with digital photography destroying Kodak's film-based model of business. For several decades, management was unable to realize that digital photography constituted a disruptive new technology, at the same time company researchers extended that technology's boundaries (Mui, 2012). Kodak had a head start into digital technologies and could manufacture industry-leading digital cameras and technologies ahead of competitors. But it took a whole decade for digital cameras to dominate the market for cameras. It was only in 2002 that total digital camera sales finally exceeded analog camera sales. In hindsight, the company possessed over two valuable decades' time for responding to a threat to its existence. Considering this extraordinary amount of time Kodak possessed, as well as its enormous decisive action, one would expect the company to have effortlessly tackled this important industrial technological change. Unfortunately, something else happened in reality. By the year 2003, the company, which was just one of the five main digital camera players, began losing money. Kodak's digital camera market share was below 25%, and in the succeeding few years, the company continuously lost its profits and market share. On 19th January, 2012, the company filed for bankruptcy protection under chapter 11, signifying the collapse of its 131-year-long history as a leading American company (Chopra, 2013).
Kodak's failure wasn't because of technological transition difficulties, or speed of change, or blindsiding by some disruptive innovation. Rather, it was gripped by a sort of gridlock. In the early nineties, when the company was readying itself to send its core digital products to the market, company managers were paralyzed, as they came to the realization...
It is common sense for a company to lower their costs when they are aware of the upcoming losses from the market. Unfortunately, Kodak was slow to realize that where Fujifilm adapted to it quite quickly, After many power changes, the eventual leader Shigetaka Komori put the company on the right path. The restructuring and the remodeling plan that he started, he basically went onto lay off people and cut down
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