Kodak Case Study: Analyzing Business Strategy, Innovation & Challenges

This case study examines Kodak's journey from its early success with dry plate technology to its struggles in the digital age. It highlights George Eastman's initial innovations and the company's subsequent strategies, including ventures into colored films and acquisitions like Sterling Drug Inc. The analysis covers periods under different leadership, including George Fisher's focus on pharmaceuticals leading to financial crisis, and Danie Carp's efforts to redirect the company towards radiography. It discusses Kodak's failures in building a digital customer base, its investments in emerging markets like China, and its partnerships, such as with Nokia, to leverage digital printing. The study concludes by noting Kodak's efforts to maintain financial stability and explore growth opportunities in both traditional and digital sectors. Desklib provides access to this and other case studies for students.

Analysis of Kodak Case
The innovation or emergence of digital technology has made the organisations to step into the
world of digital technology for building the market stake. The innovation and dynamic
changes in the digital technology made Kodak to adopt the changes that took place in the
market so that it can meet the competition in the market. This is mainly done to have market
share and growth in the market with the innovation of new products and services with the
adoption of new technologies. Kodak has started its business with the invention of the dry
plate process in 1879 that was coated with dry photographic plates. The plates have created a
huge change in the market and made it to earn profits (Kodama, 2018). With the changes in
the market, the organisation introduced paper roll and coloured films in the year of 1935 that
has created high turnover in 1970 and also brought various new competitor for it. The launch
of the new camera made the organisation to step into the business of photography by
acquiring the sterling drug Inc. The focus of the organisation is to make the things easy and
possible for the consumer so that they get attracted to it. This can be done with the effective
management policies of the company. Kodak was first undertaken by the George Eastman
who has made the company to have stake in the American market. After the death of
Eastman, the company was under the role of George Fisher, who made the company to work
under the pharmaceutical due to innovation and growth in the sector of digital technology.
Due to this, the company was under the huge debt and financial crisis, this made them to have
money from the outside. The investment was in the various emerging markets like China that
create huge loss to the organisation (Wang, et. al., 2018).
The loss was covered by the Danie Carp, new CEO of the company as he made the
organisation to enter into the market of radiography. The loss under the invigilance of Fisher
was very high as investment was made in the field of health-related businesses that made
them to have high cost. This cost reduced it share price in the market and made it to face huge
loss. The price value of the company was also decreased and made the company to have huge
financial loss. The company was highest cost manufacturer with the production of digital
products that made it to loss hundred of millions in year. This made the organisation to face
issues in the restructuring of the business as elimination of 19000 jobs took place due to high
loss. This also made the cut of $1 billion from annual budget or cost. The failure of the
company took place in the creation of digital customers base. This made it difficult to meet
the competition in the market. With the emergence of Carp, the organisation had it tie up with

doctors, that made it increase it sales by 117%. This also made the doctors to replace the X
rays with the images that can be extracted digitally (Matthews, 2018). In year 2003, the sales
were increasing with the use of digital technology with the creation of customer base. The
investment in the digital camera that made it have its investment in China film market. This
has increased its distribution in the market of Asia and also brought royalties for the
technology’s manufacturers. This has increased the sales of services in digital printing and
photographic paper in US. The company was on track with its tie-up with Nokia for the
printing of digital images with new camera cell phone. This has made the Kodak to have its
high share in the market and made them earn high profits in the market of digital technology.
With the passing year, the company focused on maintaining its stock for creating strong
financial position in the market. The cash balance was maintained by the Kodak for the
innovation of new products in future and for generating profits. The organisation has various
plans for the expansion and growth in tradition film business with the adoption of new
technology (Temin, 2017). This led the organisation to have stake in the market with high
share value.

References
Kodama, M. (2018). New product innovation through dynamic capabilities: the case of
Fujifilm versus Kodak: Driving Congruence in Capabilities. In Sustainable Growth Through
Strategic Innovation. Edward Elgar Publishing.
Matthews, G. E. (2018). Creative Destruction and the Perpetual Growth
Assumption. Business Valuation Review, 37(4), 150-157.
Temin, P. (2017). The vanishing middle class: the growth of a dual economy. INET
Edinburgh, 1-29.
Wang, L., Li, E. P. H., & Ding, X. (2018). Does deliberate learning lead to dynamic
capability? The role of organizational schema for Kodak, 1993-2011. Journal of Strategy and
Management, 11(1), 52-80.