With the rapid development of technology and the times, many of the products we use around us are constantly evolving. Taking cameras as an example, the post-00s may have been exposed to digital cameras or SLRs since childhood, while the post-90s have experienced the era of film cameras. For many people, today's film has become a symbol of nostalgia, an existence that evokes emotional resonance. In the past, there was a company that stood out in the domestic and foreign markets with its outstanding performance in the field of film and imaging. However, with the passage of time, this former giant has long since declined, and although it has not completely disappeared, it is now a small player in a few fields.
Kodak, a century-old brand born in 1892, had a market capitalization of $31 billion at its peak in 1997 and employed 1450,000 people. Today, however, its market capitalization is only one percent of its peak, at just 3$4.7 billion. This former king of film was destroyed by his own technology.
In Kodak's illustrious history, 1975 is a pivotal year. In that year, Kodak created the world's first digital camera, however, this innovation did not receive the attention it deserved within the company. Fearing that digital cameras would cripple the film business, executives chose to ignore the innovation, only to see the consequences.
The rise of digital cameras has made Kodak difficult. From the late 90s of the 20th century, digital cameras gradually occupied the market, and Kodak was in trouble. Since 2004, Kodak has been losing money almost every year and has not been able to turn a profit. In 2007, in order to raise funds, Kodak had to take the digital camera business and then the medical imaging business. In January 2012, Kodak officially filed for bankruptcy protection, becoming the back of the once glorious imaging giant.
Kodak was once one of the pinnacles of photography, but in the wave of market change, its decline was inevitable. However, on the verge of collapse, Kodak did not choose to rest on its laurels, but tried to make several strategic transformations.
The first strategic transformation dates back to 1988, when Kodak acquired the pharmaceutical company Sterling for $5.1 billion. However, six years later, Kodak realized that it did not have the capacity to develop innovative drugs and to produce generic drugs at low cost. Kodak began to look for a new direction, selling Sterling's prescription drug business to Sanofi in 1994, and subsequently selling the remaining stake and the over-the-counter drug business for 29The $2.5 billion package** was given to SmithKline Bycheng, which became GlaxoSmithKline.
In 2013, Kodak went public out of bankruptcy protection and re-listed as a small digital imaging company. However, after re-examining the limitations of past development, Kodak began to experiment with cross-border transformation. In early 2015, Kodak launched the SP360 action camera in an attempt to compete with GoPro. However, at that time, VR technology was not yet popular, and Kodak's technology was not mature, resulting in word-of-mouth and sales not meeting expectations. At the same time, GoPro is booming in the field of action cameras and has almost become synonymous with this category.
In 2016, Kodak entered the smartphone market with the launch of Ektra. With a background accumulated in the electronic imaging industry, Kodak designed the ektra, which has a look that blends a retro card camera and a mobile phone. However, the mobile phone business has now withdrawn from Kodak's main business scope.
In addition to the imaging and pharmaceutical industries, Kodak is also trying to enter the fields of art and fashion in the process of transformation. Art magazines, co-branded clothing and skateboarding brands were launched, but these attempts were more of a ticket and publicity gimmick than a new pillar of Kodak. Kodak's path to transformation has been jaw-dropping, from the king of film to drug manufacturers, to smartphones and fashion, and Kodak's fortunes have changed like Nokia a decade ago.
The development of technology is like a high-speed fast train, and those who cannot keep up with the trend will eventually be eliminated. Looking back on Kodak's decline, we can't help but sigh. From ignoring the importance of digital cameras within the company, to struggling to cope with the rise of digital cameras, to multiple attempts at strategic transformation, Kodak's fortunes have had many twists and turns.
In the long history of the enterprise, Kodak is a case worth reflecting on. Its decline is not only due to the backwardness of technology, but also because of its inability to adapt to market changes. Kodak's story tells us that only by constantly innovating can we remain invincible in the fierce market competition. May Kodak's experience serve as a warning to us on the way forward, inspiring us to continue to innovate and improve.
Technology