1FAILURE OF KODAK
Failure of Kodak
Failure of Kodak
Kodak company is one of the iconic companies in the photography and film company. In the recent past, Kodak has been the leading entrepreneur in the production of photographs in the world. This was so because the company knew how to regulate their products and when to invite investors in their company. However, in January 2012 according, the company almost came the verge of collapsing that the management filed for bankruptcy because they could not meet the standards they had set for their company (Harney, 2012). This was partly contributed by the fact that digital cameras were introduced to the market. The digital cameras use memory cards which are way much cheaper than the Kodak films and are also easy to carry around. As the sales of Kodak films declined drastically, the management of Kodak company buried their heads in the company and neglected their duties.
Kodak company is known to be the most innovative company in terms of film production. The company was unable to integrate internal innovative aspect and the external innovative aspects. This is another cause of their failure when the market changed. The investors also moved away from the company, which led to bankruptcy. In order for the managers to salvage the company from bankruptcy, the managers could have integrated the internal innovations with the external innovations for the company to be viably competitive in the growing digital market. The managers could have also stood strong and accepted the fact that Kodak products was declining and look for a way in which they could merge the company with a new idea that could make the company competitive.
HARNEY, B., 2012. Book review and commentary: good strategy/bad strategy: the difference and why it matters. Harney, Brian (2012) Book Review and Commentary: Good Strategy/Bad Strategy: The Difference and Why It Matters.. Irish Journal of Management,, 32(2), pp. 128-131.