The Rise and Fall of Kodak: A
Lesson in Adapting to
Technological Change
Kodak: The Rise and Fall of a Photography
Giant
The Founding and Early Success of Kodak
The Eastman Kodak Company was founded in 1881 in Rochester, New York
by inventor George Eastman and businessman Henry Strong. Eastman had
previously founded the Eastman Dry Company, which manufactured
photographic plates. The name "Kodak" was invented by Eastman himself, as
he wanted a name that was easy to pronounce in all countries and the letter
"K" was his favorite.
Kodak quickly became a leader in the photography sector, with a strong
market presence in the sale of photographic and video cameras,
photographic printing, and the manufacturing of film rolls for both
photography and cinema. By 1997, the company's stock market value had
reached $30 billion, solidifying its position as a technological giant.
The Shift to Digital Photography and Kodak's Downfall
The shift to digital photography, however, proved to be a significant
challenge for Kodak. As the general public began to move away from
traditional cameras, film, and photographic paper, the company's sales in
these areas declined. Kodak's refusal to embrace and adapt to the new
digital technologies ultimately led to its downfall.
The company failed to create new forms of market and surprise customers
with technological developments. Kodak's management believed the
company was unbeatable, but the era of the 2000s proved otherwise, and
the company ceased to be one of the technological giants.
Kodak's Attempts at a Comeback
After declaring bankruptcy in 2012, Kodak has been undergoing a
transformation process in an effort to make a comeback. In 2017, the
company attempted to re-enter the market with a smartphone, but the
camera element, which was expected to be a strength, did not perform well.
In 2018, Kodak launched the Kodak Ektra, a cell phone that offered a unique
photography experience in the market, aiming to capture the nostalgia for
family photography moments.
