Eastman Kodak - Changeover
1.0 Introduction
This discussion looks in to firm 's response to challenges they face from transformation and evolution of technology that subsequently threatens their traditional, successful business. A case study of Kodak is been given as an example because Kodak has gone through a transition phase in a period between 1980 's to 1990 's , due to introduction of new technology in the field of photography specially digital photography. Kodak was the only one that developed many of the components of digital photography, yet the new form of photographic technology has had a serious, unconstructive impact on the firm business.
2.0 The need for the "change"
George Eastman Kodak Company developed the first snapshot camera in 1888.In 1889, Eastman and his chemist perfected the transparent roll of film, made it possible for the development of Thomas Edison 's motion picture camera. From 1880 's Kodak invested heavily in film and when colour photography was introduced, it was one of the few companies that had the knowledge and processes to succeed. The company achieved $1 billion in sales in 1962 (Gavetti et al., 2004). By 1976, Kodak captured the majority of the US film and camera market (90% and 85%, respectively). Kodak 's photofinishing process quickly became the industry standard for quality (Gavetti et al., 2004).
Kodak had always got distinctive competency over its competitors because of the scope and operations of its business. This helped the Kodak towards the continues growth of their business for more then 90 years. But from the period 1980 's-1990 's Kodak encountered problems of market share, revenues, competitors and technological explosion which was rapidly threatening the survival of their business. Kodak began to realize that radical changes in the structure of the company and the technology of their products would be vital toward success of the Kodak brand.
Following are some factors that motivated Kodak to change its organisational structure for
This discussion looks in to firm 's response to challenges they face from transformation and evolution of technology that subsequently threatens their traditional, successful business. A case study of Kodak is been given as an example because Kodak has gone through a transition phase in a period between 1980 's to 1990 's , due to introduction of new technology in the field of photography specially digital photography. Kodak was the only one that developed many of the components of digital photography, yet the new form of photographic technology has had a serious, unconstructive impact on the firm business.
2.0 The need for the "change"
George Eastman Kodak Company developed the first snapshot camera in 1888.In 1889, Eastman and his chemist perfected the transparent roll of film, made it possible for the development of Thomas Edison 's motion picture camera. From 1880 's Kodak invested heavily in film and when colour photography was introduced, it was one of the few companies that had the knowledge and processes to succeed. The company achieved $1 billion in sales in 1962 (Gavetti et al., 2004). By 1976, Kodak captured the majority of the US film and camera market (90% and 85%, respectively). Kodak 's photofinishing process quickly became the industry standard for quality (Gavetti et al., 2004).
Kodak had always got distinctive competency over its competitors because of the scope and operations of its business. This helped the Kodak towards the continues growth of their business for more then 90 years. But from the period 1980 's-1990 's Kodak encountered problems of market share, revenues, competitors and technological explosion which was rapidly threatening the survival of their business. Kodak began to realize that radical changes in the structure of the company and the technology of their products would be vital toward success of the Kodak brand.
Following are some factors that motivated Kodak to change its organisational structure for
References: Christensen, C. 1997 The innovator 's dilemma: When new technologies cause great firms to fail. Boston, MA: Harvard Business School Press. Gavetti, G., Henderson, R., Giorgi, S., 2004. Kodak (A). HBS Publishing. Charles Darwin ;1859 on the origin of species;London john Murray.