Fellowship

Xartup TM     Fellowship

How World’s top company in photography went bankrupt?

In today’s blog we will be looking at the rise and downfall of one of the giants in area of photography.

Beginning...

  • Kodak was founded in 1888, as ‘The Eastman Kodak Company’ by George Eastman.
  • The company got immense success upto 20th century.
  • It was the world’s most famous company in the area of photography and videography.
  • In 1888, the company started its business by selling its original camera, created by George Eastman in the US for $25.About Us

Kodak Business

  • Kodak followed the razor and blades business model of selling inexpensive cameras and making large margins from consumables like film, chemicals, and paper.
  • Kodak, for many years remained the number one company in it’s field all over the world.
  • By 1968, it had captured about 80% of the global market share in the field of photography.

Competition with Fuji

  • One of the main reason for decline of Kodak dominance over the business is it’s rivalry from Fujifilms.
  • Japanese competitor Fujifilm entered the U.S. market with lower-priced film and supplies.
  • But Kodak didn’t believe Americans would shift their preference because Fuji was an outsider company.
  • Fuji used aggressive marketing strategies like price cutting and also focused on more technological advancements.
  • Thus, Fuji’s share went from a 10% in the early 1990s to 17% in 1997

Lagging behind in technology

  • The greatest fact and the major reason for the downfall of Kodak is that, the company wanted to run it’s business without any modifications according to new technologies.
  • In 1975, Kodak was the first company which made handheld Digital cameras, but had not launched it.
  • The main reason for not introducing the Digital Camera in the market was that the company feared that it’s main business of photographic film business would be affected.

Downfall

  • Kodak’s strategy of sticking to its traditional business leads to its major downfall.
  • The Company failed to realize that it’s strategy which was effective at one point is now holding it behind.
  • Fuji Films and many other companies focused on technological developments in the photography & videography segment.
  • While other companies were making new developments and gaining more popularity, Kodak wasted it’s time in promoting the use of film cameras instead of emulating its competitors.
  • Company completely ignored the feedback from the media and the market.
  • Kodak tried to convince people that film cameras were better than digital cameras and lost 10 valuable years in the process.
  • For these 10 years, Kodak continued arguing with Fuji Films that people would still love the traditional process of photography.
  • Kodak also believed that the citizens of the USA would always choose it over Fuji Films, a foreign company.
  • While in the meantime, Digital Cameras and other Companies became famous because of its ease and cost effectiveness.

Bankruptcy

  • Kodak began to struggle financially in the late 1990s, as a result of the decline in sales of photographic film and its slowness in moving to digital photography.
  • When Kodak finally realised it’s mistake and started the sales of digital cameras, it was too late because many rival companies gained a bigger share of the market.
  • Also, Kodak invested its funds in acquiring many small companies, depleting the money it could have used to promote the sales of digital cameras.
  • In the year 2004, Kodak finally announced it would stop the sales of traditional film cameras.
  • This decision made around 27,000 employees redundant.
  • The company also tried itself in the field of inkjet printers, but despite that it was continuously suffering many losses.
  • In September 2011, the stock prices of Kodak hit an all-time low of $0.54 per share
  • The shares lost more than 50% of their value throughout that year.
  • The company declared itself bankrupt in 2012.

 

 

A walk through the history of KODAK


 

 

1888

Kodak was founded in 1888, as ‘The Eastman Kodak Company’ by George Eastman.

 

1968

By 1968, it had captured about 80% of the global market share in the field of photography.

 

1975

 Kodak was the first company which made handheld Digital cameras, but had not launched it fearing it may affect the main business of photographic film 

 

 

2011

               In September 2011, the stock prices of Kodak hit an all-time low of $0.54 per share

 

2012

  The company declared itself bankrupt in 2012

Apply to Xartup Fellowship

Follow us on

Leave a Reply