Kodak – 3 business decisions that back-fired (Chapter #1)

KODAK

(The First Digital Camera by Kodak)

Whenever technology changes the landscape of an industry, there are some businesses that are quick to adapt and thrive and others that continue doing the same old thing until it’s too late. For Kodak, who fell behind due to the rapid advent of the digital camera, the situation was a little different though. Kodak actually painted the first digital camera back in 1975. It was one that used a magnetic Astaire to store images of about a hundred kilobytes, however over the coming years Kodak made so much money off the film that they let the new technology gather dust not realizing its potential. The company continued to focus on traditional film cameras even when it was clear that the market was moving towards digital and when Kodak finally got into the digital market they were selling cameras at a loss and still couldn’t make up enough sales to catch up to those of the competitors, who had seen the potential of digital cameras early on. Currently Kodak is losing over 200 million dollars a year, a lesson learnt in the world of business; always keep an eye on the market and be responsive to future trends, if not, it could cost you everything.

-contributed by Lord Gyan Guru

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