KODAK - RIDING THE WAVE

What can I say about Kodak. Was it yet another victim to digital domain disruption?  A casualty of mismanagement?  Was it a failed entity or one just suffering from the ravages of old age and near the end of its life-cycle.  What was it that morphed an iconic American company into a bankruptcy court flier and likely absorption candidate by another entity.

One of Kodak's early '70s digital cameras

I have worked with Kodak for the last 20+ years on a variety of cinema related sound and projection projects.  It always occurred to me that I was working with very smart and motivated people.  But, like many large and very successful organizations, over time, they become departmentalized and layered.  This has the effect of making the status quo the goal - as this is where prior success was spawned.  Kodak was too successful. Given Kodak's utter dominance of the analog film industry (on a global basis) their emphasis and single mindedness was to keep the game going even when faced with certain inevitable outcomes from the digital domain.

New Packaging Imager

Kodak executives were fully aware of the impact the transition to digital photography would have on their business model.  In fact, Kodak still owns many of the patents on digital photography (see CMG post " Kodak's Hidden Treasure" - August 20,2011). Additionally, Kodak built one of the first digital cameras, way back in 1975!  At its heart, Kodak is a chemical and engineering company.  It weakness was its marketing, promotion, and business development.  Kodak could develop products but never effectively market them. So, like most companies it fell back on its core strengths to keep profitable - which was continuing to make advances in film technology and manufacturing.

The Kodak story is one of evolution and corporate fatigue not failure. Capturing the digitial photographic market, the way it had (so successfully accomplished) with film, was not in their grasp. And even if they had gotten control of it there were no profits to be made. Digital photography was and is a financial non-starter.  Kodak did the only thing it could - ride the wave until it reached shore.

Best and Happy Movie Going!
Jim Lavorato
Cinema Consultant & Advisor