Kodak, The Rise and Fall of a Giant

Once Upon a Time in Rochester: The Birth of a Giant

In 1888, George Eastman launched a company that would revolutionize photography forever—Kodak. With a simple slogan, “You press the button, we do the rest,” Kodak made photography accessible to the masses. For much of the 20th century, it wasn’t just a camera company; Kodak was photography.

At its peak in the 1990s:

• Kodak commanded over 80% of the U.S. photography market.

• Employed over 145,000 people worldwide.

• Was ranked among the top five most valuable brands in the world.

• Generated $16 billion in annual revenues (1996).

Kodak wasn’t just successful; it was synonymous with memory-making. The phrase “Kodak moment” became a cultural symbol.

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The Slide Begins: What Went Wrong?

Ironically, Kodak invented the first digital camera in 1975. Yes, Kodak engineers built the very technology that would eventually threaten their existence.

So, what happened?

Here’s a breakdown of their missteps:

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1. Fear of Cannibalization

Kodak feared that digital photography would destroy its lucrative film business. So, they shelved the innovation. Instead of leading the digital revolution, they resisted it. By the time they re-entered the digital market in the early 2000s, Canon, Sony, and Nikon had already established a significant lead.

“We had the opportunity to become the Apple of the photography world. We didn’t.” — Former Kodak executive (source: Forbes)

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2. Complacency and Cultural Inertia

Kodak’s culture was rooted in film. Their management team largely consisted of people with backgrounds in chemical engineering and analog processes, not digital thinkers. Change was seen as a threat, not an opportunity.

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3. Misjudging the Market

Kodak underestimated how quickly consumer behavior would shift. Digital wasn’t just an alternate format—it reshaped the way people captured, shared, and stored memories. Kodak didn’t keep up with the mobile and social media integration that became essential.

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4. Late and Lacking Diversification

While competitors like Fujifilm diversified into healthcare, electronics, and cosmetics, Kodak remained too focused on imaging. By the time they tried branching out, it was too little, too late.

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The Collapse

• 2012: Kodak filed for Chapter 11 bankruptcy.

• By 2013, it had sold most of its patents to tech giants like Apple, Google, and Microsoft.

• More than 50,000 jobs were lost globally.

Kodak tried to rebrand as a digital printing and packaging company. Though it’s still around in some form, it never regained its former glory.

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Key Lessons for Corporate Professionals

Whether you’re an executive or a rising star in a corporate setting, Kodak offers some powerful takeaways:

1. Innovate or Perish

Innovation should never be feared, even if it disrupts your current business. If you don’t do it, someone else will. Remember: Kodak invented the digital camera—and still lost.

2. Customer Behavior > Product Love

Your customers don’t love your product—they love what it does for them. Kodak loved film. Customers wanted convenience, speed, and shareability—which digital offered. The emotional attachment to a legacy product can be fatal.

3. Complacency Kills

Market leadership doesn’t mean permanent dominance. The higher you rise, the harder you need to work to stay there. Culture should evolve, not ossify.

4. Diversification is Not a Luxury

Fujifilm faced the same crisis but survived by moving into pharmaceuticals and imaging technologies. A flexible portfolio can be your shock absorber in times of change.

5. Leadership Must Be Forward-Thinking

A lack of digital leadership was Kodak’s Achilles heel. Today’s businesses need C-suites that understand data, technology, and customer behavior. Traditional metrics and legacy mindsets won’t help navigate a digitally transformed world.

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A Suggested Course of Action for Today’s Companies

To avoid the “Kodak curse,” companies and professionals should consider these actions:

Final Thought

Kodak’s story is not just about the fall of a company—it’s about the danger of comfort, the illusion of invincibility, and the cost of ignoring change. For today’s professionals, it’s a masterclass on what not to do and a stark reminder: no one is too big to fail—but everyone is small enough to adapt.

C. Basu.

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Bibliography

1. Kodak’s Fall from Grace – Forbes

2. “The Real Lessons from Kodak’s Decline” – Harvard Business Review

3. Kodak Annual Reports – Kodak Official Site

4. “How Kodak Missed the Digital Photography Boat” – BBC

5. Fujifilm’s Reinvention Story – The Economist