Further, there is perpetual uncertainty about the future of the company. Thus, reinventing itself as an innovator has proven to be a much greater challenge for Kodak than it has been for Fujifilm. Part of the problem was the conservative culture at Kodak, and part of it is that Kodak waited far too long to recognize the changes in the external environment and mount a credible response. For its part, Fujifilm's management did a better job and the company is performing better today. Also, because it utilizes local production, it is not weighed down by pensions as Kodak is. For both of these companies, the same three steps are recommended to improve managerial flexibility. Both companies need to realize that they are now in the technology business and need the types of lean, efficient cultures that drive innovation. Creativity must be given pride of place, and that means in the C-suite as well. Second, culture change needs to be supported with intrapreneurship programs (Alpkan et al., 2010). This will allow the company to develop its own innovation even with low capital availability, by providing managerial support and company time to drive innovation. The...

They both still see themselves as imaging firms -- especially Kodak -- but really that business is in a constant state of flux. They need to take a much broader view of what their business is in order to open themselves up to new ideas.
Works Cited:

Alpkan, L., Bulut, C., Gunday, G., Ulusoy, G. & Kilic, K. (2010). Organizational support for intrapreneurship and its interaction with human capital to enhance innovative performance. Sabanci University. Retrieved May 6, 2013 from http://research.sabanciuniv.edu/14209/1/Management_Decision_final.pdf

Baron, D. (1997). Integrated strategy and international trade disputes: the Kodak-Fujifilm case. Journal of Economics and Management Strategy. Vol. 6 (1) 291-346.

Hitt, M., Hoskisson, R., Ireland, D. & Harrison, J. (1991). Are acquisitions a poison pill for innovation? The Executive. Vol. 5 (4) 22-34.

McWilliams, a. & Siegel, D. (2001) Corporate social responsibility: A theory of the firm perspective. The Academy of Management Review. Vol. 26 (1) 117-127.