Hidden Reasons for Kodak's Digital Revolution Essay

Decent Essays
Kodak and the Digital Revolution: Case Analysis
Since the early 1880’s, Kodak had proven themselves to be great innovators and had worked on building their brand on a domestic and international front. They invested heavily in marketing to establish their image and realized early on that their profits would come from consumables rather than hardware. They sold their equipment at low prices in order to fuel their highly profitable film sales. This use of a razor-blade strategy, coupled with strong relationships with retailers positioned Kodak as an industry leader. Additionally, their heavy investment in R&D allowed Kodak to grow organically, proving fruitful with the advent of color film. Thus, Kodak’s expertise in color film
…show more content…
In traditional imaging, the image chain was as follows: Image Capture > Roll of Film > Printing > Storage.b This was a change from the digital imaging chain which was: Image Capture > Digitization > Storage > Retrieval, Transmission, Printing, Manipulation, and Projection.a See custom attachment for graphical representations of traditional imaging chain and figure A taken from page 9 of Kodak and the Digital Revolution case. Kodak’s response to Sony’s introduction of the Mavica in 1981 was one of trepidation as well as acceptance. Kodak clearly realized that the Mavica had the potential to greatly alter the landscape of its industry. Kodak acknowledged this occurrence as a major paradigm shift; however, due to the escalating commitment and its deep roots in traditional photography, Kodak failed to react accordingly. Kodak’s CEO at the time, Colby Chandler, outwardly recognized the public’s affinity for color prints – the product that made Kodak a household name. Yet, others at Kodak went as far as to make doomsday predictions. Some managers within Kodak felt that the inception of the Mavica would be the death of traditional photography. It is apparent that Kodak should have invested in research and development as traditional film was reaching its natural limit, thus causing the referenced paradigm shift. Without Kodak’s willingness to outwardly adapt to the change, whether it be through R&D or other channels, Kodak’s ability to
Get Access