Kodak invented the digital camera in 1975. And then shelved it.
# This is Company Forensics: Kodak
## The Rise of Kodak
In the 1880s, George Eastman started manufacturing dry plates for photography, which eventually led to the creation of film rolls and the birth of the Kodak brand in 1888. Eastman’s innovative cameras made photography accessible to the masses, revolutionizing the industry.
## Dominance and Innovation
Through a razor and blades strategy, Kodak not only sold cameras at affordable prices but also profited from consumables like film and developing chemicals. The company continued to innovate, introducing products like the Brownie camera and Kodachrome color film.
## Expansion and Challenges
Despite its success, Kodak faced competition from companies like Fuji, which offered cheaper alternatives. Kodak’s attempt to diversify into pharmaceuticals with the acquisition of Sterling Drug proved to be a costly mistake. The rise of digital photography further challenged Kodak’s traditional business model.
## The Digital Revolution
The advent of digital cameras disrupted the photography industry, causing Kodak’s profits to plummet. The ease of digital photography made it accessible to a wider audience, leading to a decline in demand for traditional film products. Kodak struggled to adapt to the changing market dynamics and ultimately filed for bankruptcy in 2012.
## Lessons Learned
Kodak’s story serves as a cautionary tale of the importance of innovation and adaptation in a rapidly evolving market. The company’s failure to embrace digital technology and respond to changing consumer preferences ultimately led to its downfall. Despite its iconic status in the history of photography, Kodak serves as a reminder of the consequences of complacency in the face of technological disruption.
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