MARTINEZ, GERALD S.

MAY 17, 2020

S62 – LEADOC

Lessons from the Fall of Kodak

The case of Kodak is a classic story of the effect of failure to adapt to changes. The company
had seen the what was coming, the era of digital photography, but failed to execute a good
strategy to adapt the new business. It failed to adapt which led to a great fall. There are
several lessons from the fall of Kodak that should be remember and where companies can learn
to avoid the same fate.

First, the ability to truly adapt to change. This can come in a form of new technologies or new
products. Leaders must be willing to adapt, let go of what is not already working and invest into
the new thing that would work. Kodak had been dominant in the film industry. Then, the world
shifted from analog to digital – film to online, but Kodak went on a separate path instead and
got trapped in their obsolete business model. (Mui, 2016)

Second, change is constant, continue to innovate. Common failure of companies is acting slowly
until there’s already a need for urgency. Kodak saw what’s coming but acted only when it was
too late. As the urgency grows, the liberty of time diminishes in contrary.

Third, be creative, diversify. Just as what Fujifilm did, they it used its expertise and other
resources to invest in other business which cushioned their fall that time. On the contrary,
Kodak focused too much on their core and did not consider exploring other business they can
venture into given their vast resources.

This might have been a sad story but will serve as a good guide for today’s companies dealing
with so many disruptive changes. Companies should consider doing the following to avoid going
the same path, the death spiral

Do not focus too much or be trapped with the current business model in the midst of changing
environment. Being open to the changes is being open to better opportunities as well. (Cable,
2012)

Continuously work and innovate. Changes may be foreseen or maybe sudden and may have a
company caught off-guard. But being ready, having new ideas and things always in the work
may help in the impact of the change.

Communicate, not only within the top, but from the bottom to the top. This is ensuring that all
important and critical voices are heard and been considered.

Be agile. Be always ready to transform the way you do business and your strategy. (Minds,
2019)
Changes may hit you hard. Don’t be afraid to push far enough and fast enough even if it seems
to be your unchartered territory.

References:

Cable, J. (2012, February 8). Lessons Learned From Kodak: Don't Get Trapped by Your Core
Business Model. Retrieved May 18, 2020, from https://www.industryweek.com/the-
economy/article/21940847/lessons-learned-from-kodak-dont-get-trapped-by-your-core-
business-model

Minds, B. (2019, October 17). Why Did Kodak Fail and What Can You Learn from its Failure?
Retrieved from https://medium.com/@brand_minds/why-did-kodak-fail-and-what-can-
you-learn-from-its-failure-70b92793493c

Mui, C. (2016, June 20). How Kodak Failed. Retrieved from

https://www.forbes.com/sites/chunkamui/2012/01/18/how-kodak-failed/#1ff145b56f27