Thursday, January 19, 2012

Kodak Files for Protection under Chapter 11

The Ateneo Graduate School of Business Advantage

Kodak filed today for protection from creditors under Chapter 11.  It constantly lost money over the last several years because of the competition from digital photography and imaging.   It is interesting to note that it discovered digital photography in l975.  (That is why it produces and markets digital cameras)

However its mistake was allowing the competitors exploit the digital photography.  It protected its film business and paid dearly for the move with the loss.

Compare that with Intel under Andrew Grove who undertook the SIP for the company.  They abandoned the memory business and went into microprocessor business.  They did not wait for the memory business to go on decline and instead went into the emerging microprocessor business, thus coming out with 286, 386, 486 and then the Pentium.

Strategic Insight/Critical Analysis

Why did Kodak had to protect its film business?  What is wrong with digital photography vs film?

Compare this with Canon strategy?  What did it do to capture digital imaging technology to increase its business<

What do you think of this event for Kodak?  Was it simply a case of unstoppable decline for the business cycle of Kodak?

Did it fail because of lack of innovation?

Could Kodak have been entrepreneurial and thus stave off its bankruptcy?

Is it part of the US malaise?

Or is it a case of management hubris?


"New ideas create more and better new products and services; create more wealth."

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