Kodak was synonymous with photography for decades – until the “Kodak moment” was over.
Its downfall was not due to a technical mistake, but rather a strategic one.
Kodak invented the first digital camera in 1975, but it decided not to push it forward out of fear of undermining its core business: film and development.
As the world moved digital, Kodak clung to a model that was already becoming obsolete, out of fear of declining profits and overconfidence in its ability to dominate the market long term. Meanwhile, more agile competitors bet on innovation and understood changes in consumer habits. Kodak’s competitors quickly gained ground.
In 1999, Kodak had about 27% of the camera market share, but that figure plummeted to just 7% in 2010 as competitors such as Canon, Nikon, and Sony dominated the digital market.
The lack of adaptation was so critical that, after years of decline, the company filed for bankruptcy in 2012, with billions in debt.
If only it had bet innovation.
Tomilli