Kodak and Digital Revolution Essay Example for Free

Kodak and Digital Revolution EssayIn 1976 Kodak controlled 90% of the film foodstuff and 85% of camera sales in the United States. By 1992 the share of film market decreased by 5%. In 1991 they launched the first professional digital camera. In 1998 they spent $1. 2 billion to two joint ventures with the Chinese government and by 1999 became number two in digital cameras in the United States with a 27% market share.In 2001it launched Where it alone clicks theme to stimulate digital imaginativeness and in 2002 launched the first mass-market product for digital film processing. By 2003 they controlled most photofinishing transaction in the United States with 15% unprofitable digital camera market. Digital resourcefulness was a disruptive technology that was emerging in early 80s and Kodak got blind sighted by its extreme focus on existing customers and their needs.They followed a customer focus dodging instead of taking digital imaging as a disruptive innovation. Their focus w as to provide products that its existing clients want in a cost effective manner. Kodaks strategy for digital imaging has been way off and its first digital product, the Photo CD which was a failure. It couldnt leverage upon worlds first electronic image sensing element that they launched earlier that was widely used by computer industry worldwide. They used all strategies to the disposal but its timing was way off.They used Radical to additive innovation an example is their digital photography compared to Sonys Then their strategy shifted from convergence of digital and film based imaging to selling hardware such(prenominal) as digital cameras and printers by alliancing with computer and electronic industry. This strategy also failed as competition was too fierce by 1995 and profit margins shrunk. Then strategy was changed to picture business and network consumables with at least 50% market share.These strategies were based to the changing market needs and competition especially from Fuji films Kodak is a showcase for failing to innovate they missed the digital revolution because they were focused on protecting its core business, traditional photographic film. The reality is different, though. Kodak was in event one of the first companies to have worked on digital imaging its not that they were ignoring the digital revolution Today, Kodak is still leading digital imaging, as the phoner holds many patents in this field that are used in products such as HP printers.The painful Kodak factory closures that one can see like a shot are nothing but the price to pay to transition from one era to the other, from the era when Kodak was a chemist to an era when it is a software company. For all its mistakes, Kodak is doing what few companies have been able to do. Lessons Learned No doubt, Kodak was victim of the innovators dilemma. The most immediate takeaway from the fall of Kodak is clear Dont be horror-struck to cannibalize your own business in the name of prog ress. But Kodaks inability to make any of its products stand out over the last decennium is demonstrative of an overall reluctance to innovate.