EVALUATION

Filming industry is a huge opportunity for those with innovative minds. It started in 1895
with filming of moving pictures. However, its date can be traced way back for the still picture
filming. It was a hit for the companies to start a business in this industry due to the easy
monopoly opportunities.

Kodak was founded in 1880, with the pioneering technology and innovative marketing,
they have taken over this business industry easily. Kodak was a capitalist in this regard, and as
almost for every capitalist business, they also faced a downfall for their business. They started
Kodak as a high profit business, however, changes are inevitable in business, therefore, the
digitalization of the industry brought a downfall for Kodak.

In 1976, Kodak accounted for 90% of film and 85% of camera sales in America. Until the
1990s it was regularly rated one of the world’s five most valuable brands. Then came digital
photography to replace film, and smartphones to replace cameras. Kodak’s revenues peaked at
nearly $16 billion in 1996 and its profits at $2.5 billion in 1999. However, in the recent reports, a
third-quarter loss of $222m, the ninth quarterly loss in three years. In 1988, Kodak employed
over 145,000 workers worldwide; at the last count, barely one-tenth as many. Its share price has
fallen by nearly 90% in the past year.

With these changes, Kodak fell deeper and deeper which gave way to their rival
company, Fujifilm to take a part on the American market of filming. Kodak was slow in adapting
into digitalization and also didn’t take publicity opportunities. This mentality within the leaders
leading the company brought them the collapse that is waiting for them.
SWOT ANALYSIS
STRENGTHS
● Pioneering company of film industry since
this is an untap industry during their time
● Kodak has a strong venture-capital arm
due to the equity they offer to the investors
since it has a great potential as a business
● Innovative marketing
OPPORTUNITIES
● Innovations in film industry is the strong
point of Kodak, therefore they took this
opportunity to grow their company
● Kodak took hold of the monopoly on local
town (America) in the filming industry
WEAKNESSES
● Kodak was slow in adapting changes since
they didn’t want to shift to the digital form until
it was too late
● They were also not much of a risk taker
and opportunity grabber in regards of publicity,
since they didn’t accept the offer by the
Olympics.
● Too business defensive towards its
competitors and avoid a confrontation with
them in the market
THREATS
● Rival companies such as Fujifilm became
a threat to the monopoly of Fujifilm since they
can take a market share when they shift their
business into their area and during the
digitalization
● World war II also became a threat to the
growing business of Kodak, this is because
economy on filming industry was brought
down.
● Digital development is the greatest threat
that Kodak faced since they were too slow in
adapting in this setting, this posed the doom of
the company.