Simply put, Kodak tried to replicate the silver halide business model in the digital world. This model does not work in the digital market where photos are more for instant sharing rather than for capturing memories. "In an alternate universe, Kodak took Ofoto and changed it from a site where people shared photos to one where people would share updates about their lives, news feeds and so on. What it missed was the business model. Back in … Kodak’s operational EBITDA improved by over $375 million in 2013, and the company re-listed on the New York Stock Exchange in January 2014. Doing something and doing the right thing are also different things. 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 said this month it would lay off more than 30 employees in November at Eastman Business Park and Kodak Research Labs. Now Kodak is in far better shape, with a thriving brand licensing business worth $3m and a consumer division which generated $48m in revenue during the third quarter of 2018. With the widespread adoption of digital smartphone cameras, Kodak's core photo and film processing business model has largely become redundant. Kodak’s action towards the digital world seemed to be the most logical step. Not the patents for intellectual property related to the industrial age’s film photography. Kodak was once the 800-pound gorilla in the world of photography. From its inception, Kodak dominated the American photography industry.As late as 1976, Kodak commanded 90% of film sales and 85% of camera sales in the U.S., according to a 2005 case study for Harvard Business School. How did a company that had pioneered the photographic market in 1880 collapse in just a few short years? As the digital revolution took off, the need for film disappeared. The development of the new camera will be critical for the success of the company. Vision Statement "The vision of Eastman Kodak is to be a world class company and a leading imaging company in protecting the quality of environment and the health and safety of customers, employees and communities in which company operates its business" (Kodak, 2011). Organizational Transformation in the Case of Eastman Kodak Corporation Kodak was so blinded by its success that it completely missed the rise of digital technologies. One option could have been to break up the business. Maybe in 2010 it would have lured a young engineer from Google named Kevin Systrom to create a mobile version of the site. Armed with the perfect business model and a strong vertical integration, Kodak innovated and offered some of the best products and services in the imaging business. A Kodak engineer, Steve Sasson by name, invented the 1st ever digital camera, in 1975! Although retrospectively everything is easy, what could Kodak have done? Kodak could have licensed their brand to P&G or licenced their technology to other companies, or a combination of both. They sold film, they sold the chemicals you used to develop the film and then they sold … This helped the Kodak towards the continues growth of their business for more then 90 years. Kodak's success was based on a business model of genius. Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. A generation ago, a “Kodak moment” meant something that was worth saving and savoring. They could have continued to focus on print based products with a horizontal move into other print based products (e.g. make money). Kodak, the company that fueled the growth of the photography industry, is selling its patents. Kodak made a lot of changes to its core business model in the 1990s and 2000s. Kodak … Harvard Business Publishing is an affiliate of Harvard Business School. The next explanation is that Kodak mismanaged its investment in digital cameras, overshooting the market by trying to match performance of traditional film rather than embrace the simplicity of digital. This point was highlighted with the case of Kodak’s demise from Quasi-Monopolist (1888-1976) to bankruptcy protection in 2012. The reorganized Kodak emerged on September 3, 2013, with a right-sized capital structure and an annuity-based business model. By 1988, Kodak employed over 145,000 workers worldwide. Sasson himself told The New York Times that management’s response to his digital camera was “that’s cute – but don’t tell anyone about it.” A good line, but not completely accurate. More specifically, the company would now manufacture ingredients for generic drugs. All of that is moot, the next argument goes, because the real disruption occurred when cameras merged with phones, and people shifted from printing pictures to posting them on social media and mobile phone apps. Now it … This was because they failed to evolve their business model and lost sight of their customers. While Kodak stagnated and ultimately stumbled, Fuji aggressively explored new opportunities, creating products adjacent to its film business, such as magnetic tape optics and videotape, and branching into copiers and office automation, notably through a joint venture with Xerox. Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. As technology progressed, the use of films and printing sheets gradually came to a stop. It rolled out a line of digital cameras, sold inkjet printers, and bought a photo sharing site … None of the Kodak CEOs could reconcile the digital and photo print businesses. 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