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    CHAPTER 4: Reasons of Success/failure of Fujifilm/Kodak

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    Khushi Dave
    Kodak failed to adapt to market changes brought about by new digital camera technology: - Kodak's business model relied on high profits from film and printing, but it failed to recognize that digital cameras would reduce demand for these products. - Even after seeing some losses from digital cameras, Kodak remained convinced that consumers would continue to prefer traditional cameras. - Rather than develop digital cameras, Kodak spent resources promoting film cameras and convincing consumers there was no replacement, which proved useless as consumers adopted digital. - Kodak's inventor of the digital camera was told by bosses to keep the technology secret, showing Kodak's reluctance to change with the market.

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    CHAPTER 4: Reasons of Success/failure of Fujifilm/Kodak

    Uploaded by

    Khushi Dave
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    Kodak failed to adapt to market changes brought about by new digital camera technology: - Kodak's business model relied on high profits from film and printing, but it failed to recognize that digital cameras would reduce demand for these products. - Even after seeing some losses from digital cameras, Kodak remained convinced that consumers would continue to prefer traditional cameras. - Rather than develop digital cameras, Kodak spent resources promoting film cameras and convincing consumers there was no replacement, which proved useless as consumers adopted digital. - Kodak's inventor of the digital camera was told by bosses to keep the technology secret, showing Kodak's reluctance to change with the market.

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    Kodak failed to adapt to market changes brought about by new digital camera technology: - Kodak's business model relied on high profits from film and printing, but it failed to recognize that digital cameras would reduce demand for these products. - Even after seeing some losses from digital cameras, Kodak remained convinced that consumers would continue to prefer traditional cameras. - Rather than develop digital cameras, Kodak spent resources promoting film cameras and convincing consumers there was no replacement, which proved useless as consumers adopted digital. - Kodak's inventor of the digital camera was told by bosses to keep the technology secret, showing Kodak's reluctance to change with the market.

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    175 views2 pages

    CHAPTER 4: Reasons of Success/failure of Fujifilm/Kodak

    Uploaded by

    Khushi Dave
    Kodak failed to adapt to market changes brought about by new digital camera technology: - Kodak's business model relied on high profits from film and printing, but it failed to recognize that digital cameras would reduce demand for these products. - Even after seeing some losses from digital cameras, Kodak remained convinced that consumers would continue to prefer traditional cameras. - Rather than develop digital cameras, Kodak spent resources promoting film cameras and convincing consumers there was no replacement, which proved useless as consumers adopted digital. - Kodak's inventor of the digital camera was told by bosses to keep the technology secret, showing Kodak's reluctance to change with the market.

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    CHAPTER 4: Reasons of success/failure of Fujifilm/Kodak

    4.1: Reasons of failure of Kodak

    Kodak was one of the most successful companies in its field in entire 20th century. By 1968 it
    had captured 80% of global market in field of photography. But its downfall started in 1975
    when the digital cameras were invented.

    Let’s know in detail where Kodak went wrong:

    A.)Planning

    Kodak when initially started was following the razors and blades business model through
    which they made huge profits and also faced its downfall by following the same model. The
    idea behind Razors and Blades model is to sell razors at small profit margin to attract the
    customers followed by selling blades at high profit margin which is a necessity with the
    razor. So what Kodak used to do was to sell cameras at small profit margin followed by
    selling films, printing sheets and other camera equipment at high profit margins. Thus the
    core product through which Kodak earned were the films and printing and not the cameras.

    So here where Kodak went wrong was to change its business model with market scenario at
    that time. As with the invention of digital camera the demand for camera films and printing
    was going to reduce but Kodak failed at identifying this and remained complacent. Kodak
    didn’t even heard the market reviews and were firm that consumers would prefer to see
    printed photographs. Even people in India were quite open to digital cameras as almost all
    stopped using traditional cameras as it required more efforts and another reason was the
    better quality which was provided by digital cameras. This way the business model they were
    following didn’t gave a right direction to their planning.
    B.)Organising

    As their first step that is planning was not suitable with the market scenario half damage was
    done. Further even after facing some losses they were still very firm that the consumers will
    prefer traditional cameras or they would come back to using traditional cameras.

    Moreover, instead of including digital cameras they spent their huge resources on promoting
    film cameras and in making people believe that there is no replacement of traditional
    cameras. All this efforts went completely useless as consumers preferred digital cameras. At
    this moment their biggest competitor Fujifilm tapped this as an opportunity and followed the
    market trend. Kodak was sure that at least Americans will prefer Kodak over Fujifilm but
    here also they went wrong.

    Instead of using their funds to promote they could have organised it a more productive way

    Fact: The inventor of the digital camera, Steve Sasson, was an electrical engineer at Kodak
    when he developed the technology? When Steve told the bosses at Kodak about his
    invention, their response was, “That’s cute, but don’t tell anyone about it.” That's how you
    shoot yourself in the foot!

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