Kodak and the digital revolution a introduction so far, weve seen how digital innovation has fundamentally changed the way companies organize their business activities. Kodak, along with several others, does dominate the digital camera market, but profits are slim to nonexistant, and manufacturing has been outsourced. Kodak and digital revolution free download as word doc. Kodak case study part 1 eastman kodak meeting the digital challenge. None of the kodak ceos could reconcile the digital and photo print businesses. The problem was that for over a century kodak had the classic razor and blade business model i. The official history of the company, headquartered in rochester, new york, kodak invented in the 1880 dryplate formula and a. Kodak is considering strategic efforts and challenges as the photography industry evolves. One option could have been to break up the business. The introduction of digital imaging in the late 1980s had a devastating impact on the traditional business model of kodak. It appears that core competencies that were responsible for kodak s success in the past turned into core rigidities that inhibited its response to digital photography, particularly in the ranks of middle managers. Kodak and the digital revolution a business model failure.
In 2001, kodak established the easy share system, which was intended to provide its customers with an easytouse digital experience. Kodak stunning journey of fortune to misfortune a case study financial analysis. The stock declined from around 80 dollars to 3 usd in less than ten years. A case study of kodak is been given as an example because kodak has gone through a transition phase in a period between 1980s to 1990s, due to introduction of new technology in the field of photography specially digital photography. Kodak stunning journey of fortune to misfortune a case. Eastman kodak kodak was the largest photographic filmmaker in the world, established in 1880 and representative of us firms. George eastman began kodak in 1880 and introduced the first. Kodaks failure to adapt to the new technology stands in stark contrast to fanucs case because kodak had greater resources in terms of its brand reputation, its finances and its technological prowess in digital imaging. A case study of kodak business essays essay sauce free. In real life, unfortunately, kodak used ofoto to try to get more people to print digital images.
They believe that the merger would benefit both companies that were struggling to perform in such a competitive market and therefore,in order to survive they have to grow. It is striking how kodak has suffered since the rise of digital imaging. Kodak and the digital revolution please note that you are not required to submit a writeup. The company always innovated which helped in the growth of the company but after a time period, it was reluctant of innovation as it started implementing strict policies and did not innovate into new products. In kodaks case, management did a reasonable job of understanding how the parts of the enterprise including its photo finishing partners interacted within. Eastman kodak companys strategy 4998 words report example. Digital disrupted the companys equilibrium in two crucial respects. The moment it all went wrong for kodak the independent. Contrary to popular opinion kodak was ahead of the digital technology curve and they saw well ahead of time that digital photography was a game changer. Kodak was investing in the new digital technology that it has contributed to create, but without taking advantage of its early start and its resources. Kodak and the digital revolution a case solution, the introduction of digital imaging in the late 1980s had a deleterious effect on traditional business model of kodak. Kodaks business was based on the famous razorblade model where they would sell cameras cheaply and make huge profit margins on the consumables, the films this model so deeply rooted in kodaks company culture that it. Kodak became the first company in online imaging store and photofinishing in 2001 by buying ofoto.
However, kodak filed for chapter 11 protection on january 19, 2012. Why kodak missed the digital revolution after starting it. All you wanted to know about how to write a case study eastman kodak case study simplicity. Kodak and the digital revolution table of contents. Kodak and the digital revolution free download as powerpoint presentation. Bullet point summary of kodak and the digital revolution a case study critical issues surrounding kodak include the following. Stay connected to your students with prezi video, now in microsoft teams. After discussing kodaks history and its past strategic moves in the new landscape, the case kodak and the digital revolution questions how ceo daniel carp can use digital imaging to revitalize kodak. All you wanted to know about how to write a case study.
Kodak and the digital revolution case solution and. Kodak and the digital revolution a case solution and. In this case, we will revisit the issue from the view of incumbents in. Film is a physical, chemical product, and despite a succession of new ceos, kodaks middle managers were unable to make a transition to think digitally. The research reported here comes from primary and secondary sources. Kodak could have been split in a manufacturing division, chemical division and a very profitable research division. The invention of the digital camera in 1975 by steve sasson, one of the kodak s engineers was part of intensive investments in research and development and portrays how innovative the company was back then. Scribd is the worlds largest social reading and publishing site.
Hewlettpackardcompaq the merger decision case solution. As professor burley describes, kodak was caught in a perfect storm of not only technological, but also social and economic change neate, 2012. Kodak and the digital revolution a case study solution, kodak and the digital revolution a case study analysis, subjects covered business models corporate strategy disruptive innovation by giovanni gavetti, rebecca henderson, simona giorgi source. During 2011, kodak was under intense pressure to survive in the digital imaging business. Kodak has a small share of the printer market through a.
Kodak, however, didnt see the potential in the digital camera early and couldnt capitalise on the invention. Kodak and the digital revolution 789 words bartleby. Firstly, it shifted meaning associated with cameras and secondly, digital devices. Why did kodak fail and what can you learn from its demise. Kodak and the digital revolution a case solution,kodak and the digital revolution a case analysis, kodak and the digital revolution a case study solution, the introduction of digital imaging in the late 1980s had a devastating impact on the traditional business model of kodak. Examines kodaks strategic efforts and challenges as the photography industry evolves. The company has come face to face with many changes due to the digital revolution which has created a rapid changing photography industry. Case analysis since the early 1880s, kodak had proven themselves to be great innovators and had worked on building their brand on a domestic and international front. Kodak and the digital revolution a strategy management case submission kodak and the digital revolution a ques6on.
The reasons for kodaks failure are analysed in comparison to fujifilm, the largest japanese filmmaker. Kodak and the digital revolution a case analysis, kodak and the digital revolution a case study solution, kodak and the digital revolution a xls file, kodak and the digital revolution a excel file, subjects covered business models corporate strategy disruptive innovation by giovanni gavetti, rebecca henderson, simona giorgi source. Decline in kodaks market share from 76% to 70% over 5 years 1989 1994 8% decline in kodaks stock due to rumored price reduction in. We address the issue from the view of new digital companies. Hewlett packards hp management plans to perform a merger between hp and compaq. Kodaks middle managers, culture and rigid, bureaucratic structure hindered a fast response to new technology which dramatically changed the process of capturing and sharing images. We obtained annual reports from kodak and searched the literature to build an historical time line of the key events in digital photography and kodaks response to this new technology. In an industry where nnovton and dffrntton are the keys to success. Kodak is a multinational american corporation which has become a household name most known for its film products. Hidden reasons for kodaks digital revolution essay 1149 words 5 pages. The company employed 140 000 people in 1988 today around 20 000.
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