Eastman Kodak is a technology company focused on imaging. Founded by George Eastman in 1888. The company dominated the industry for a century until in 2012 when it filed for bankruptcy. Several factors have been linked to this such as poor management from the executive team of the company. Today they are just a shell of their former selves as the industry has been dominated by other companies that came up later on such as Canon from Japan and Sony There are several decisions which if made by the management team at that time could have saved the company from the current state it is in currently.
. In 1981, Vince Barabba who was then the head of marketing conducted intensive research on the threat digital photography posed on the survival of the firm(Dutta). He examined the core technologies and adoption possibilities between silver halide film and digital technology. It was around this time that Sony a competitive company had launched their first electronic camera. The findings were both positive and negative. One thing that was for sure was that eventually, digital technology would rise to one day replace Kodak. Although this would take time as the technology was still new in the market. Concluded based on factors such as the price of the digital equipment and the quality of images. Approximated that this would take place in ten years. Thus Kodak still had time to upgrade to the new technology to still be relevant in the market. The only problem was that even during this window period the company did so little to venture into digital photography. In the years to come, the company lagged in its profits as digital photography had taken over the chemic-based film and paper business. (FORBES 2012) Had the management agreed to focus more into improving the technology used to match the preset digital photography during the ten years. The situation today would have been different. Goes to show that any firm should be effective to take action in cases that threaten the life of the business. No matter how long the window period is. Urgent times call for immediate measures.
The management quality addressed above is based on having a mindset that is open to change. Other qualities which if adopted by the management could have made significant changes in its survival Include-Thinking and acting holistically. Kodak had administration that was not in agreement with each other regarding certain factors which majorly centered around digital technology. Despite having the research results based on digital technology. Appropriate decisions were still not made towards the progress of incorporating digital technology. Part of the management was in support of traditional photography while the other was in support of digital technology. Evidenced by what occurred in 1989, when the current CEO resigned. The wheel now lied on the arms of Phil Shamp who's focus was on the traditional photography and Kay Whitmore whose focus was on digital technology. As expected in that times, the board chose Whitemore.
Further worsening the state of the company unknowingly have avoided this situation. For the majority, adopting digital technology was like smashing Kodak to the ground, and already many have advised over there. The management could have used the technique of weighing the pros and cons of engaging in both and procedures and a better and sound decision made from this.
The management thirdly should have considered the factors that are relevant to the changing times over the years. If the administration had considered this when making critical decisions certain failure could have been avoided. Seen with the purchase of Sterling Drug in 1988. By the time Kodak realized chemically treated photo paper was not similar to the hormonal agents it sold the Sterling at a throwaway price, about half of the purchasing price(Marketwatch). Had adequate research been done and trending methods in the market considered, the loss could have been avoided. The money wasted in buying the drug would have been invested in another sector that was sure to grow the brand. From the examples, it is evident that the management of the company is responsible for the state of bankruptcy of the firm, and these are but a few of the initiatives the company’s management should have considered before arriving at any decision that had a direct impact on the survival of the firm. As many of the bad decisions had been made during the phase when competitive companies were incorporating digital technology to innovate products.
Research and development play a primary role for the company to remain relevant to its consumers. Through research, new products will be innovated and the current ones improved to serve and meet the needs of the consumers using it. Research and Development also put the company in a better or similar position against its competitors. The filming industry currently has grown and has seen new innovators join the market. Each firm has a product to offer, and they try as much as possible to diversify the products. Everyone wants a share of the market. Kodak finally picked up with the digital technology and has now used the technology to provide a variety of services such as hardware, software, commercial print, and packaging. These products before being offered, there was intensive research conducted. Consumers have assured quality products. Research and Development results may take a while to grow, but the results are worth it.
Kodak knows very well the consequences of research and development, and this can be seen with the invention of FLEXCEL NX Ultra solution, this equipment is convenient free the VOC in it can destroy all the vital information if it feels in the water. These plates can deliver their passengers with less time. The FLEXCEL NX gives high-performing and high-quality, it being the first of its car. (King) The technical innovations by Kodak drive the business success and growth for our customers. Research and development enhance the reputation of the product in question. Due to the methods of analysis that will be used such as interviewing the consumers to get their feedback on specific issues factors they should innovate, do away with or maintain from the product. Research could lead to new opportunities being found.
The company will take advantage of such opportunities and be aggressive to capture the market presently. Consumers majorly benefit from the new unique products that will always come up after every research as each company tries to come up with a product that is not present in the market and if present distinctive features should be incorporated. Research is the primary reason why HD TV cost less today than it did decades ago. As new techniques are innovated the prices of these commodities significantly reduce. The new products introduced in the market are the ones who will be quite expensive. However, conducting any research requires funding and thus the appropriate methods o research should be undertaken to avoid any losses being incurred through the use of the Research quotient.
A factor that shows how Kodak has lagged is through the Consumer Electronics Show, where the company was launching an Easyshare. The feature already exists in other smartphones too. This goes without saying how behind they are regarding innovation. Shares are supposed to have dropped to 14.6% during Jan and almost by 90% for the past twelve months. (Market Watch).
With the new companies that have populated the market, Kodak has undoubtedly lost its competitive advantage against the rest as its growth is slow. Several scandals have hit the company such as the bankruptcy scandal before the company can get back to their feet and start competing with the rest. Kodak has a finite shelf life. This meant that with a decline in the sales realized, the size of the firm should reduce as there will no longer be enough funds for production. The time Kodak took to fully adopt the digital technology made it lose its brand name. Consumers got diluted as they went for other brand products. Some even became loyal customers by the time Kodak comes to the market to re-establish itself. The consumer's focus is shifted. The other brand is thus at a better competitive position than Kodak.
The company's poor decision-making skills regarding critical matters involving the company played a part in its fall. The board of any organization should not be biased. The decisions made should not be based only on one factor, but several possibilities should be considered before a decision is arrived at. Embracing changes that are consistently coming up in the market should also be applied. The tastes and preferences also change with the advancement of the technology and variety of products present in the market. A board that is open to accept such changes would not jeopardize the state of the company.
Financial books of the company should also be appropriately maintained and frequently analyzed(Dutta). In an aim of detecting any fraud or malicious, that might be taking place in the company. Monitoring of the external environment should also be done in collaboration with the employees to ensure that the process is liable and succeed. This enables them to know the activities the competitors are doing better than them. Customer relations should be improved. Advertising should be done in an n aggressive manner. The media and billboards should be involved. The internal conflict between the board of management was also a factor that led to its fall of Kodak. The several alliances made within the administration impaired the decision-making ability of the board as a whole. Investors who have shown interest in investing in the company should be included in the decision-making process. They might be knowing better techniques. Long-term objectives should be set by the company and appropriate measures taken to ensure that the goals are achieved. Another possible strategy that the Kodak may apply in order not to be bankrupt is merging. It can identify any competitive supplier in the market in which Kodak has an interest in and get into an agreement where they merge.Chances of being bankrupt are minimal as each company will be bringing different skills to the table on how to effectively manage and maintain the status of the company.
Conclusion
Kodak is the pioneer of the technology used in photography currently. All the other cameras and image related technologies that have been innovated afterward are as a result of it. Being formed the company had objectives and goals which it managed to achieve and dominate the industry for a century. However, like any other organization, difficulties raised as a result of poor management and poor decision making. Decisions made on prejudice and conservatism hindered the growth and expansion of the company into exploring the digital technology. As researched and found out, this decision would, later on, have a negative impact on Kodak. They risked being replaced if they did not, later on, catch up with the trending technology. They, later on, ended up being listed as bankrupt in 2012 a clear indication of how bad things are. This has seen Kodak sue certain companies such as Apple and South Korea over patent issues. Filing for chapter 11 was in an aim to focus more on the company's most valuable business lines and boost liquidity in the US and abroad. The essay points out the various initiatives that can be useful if adopted in avoiding such a scenario from occurring again.
Work Cited
Dutta, S. K. (2017). Strategic Change and Transformation. Taylor " Francis.
King, E. (2018). Making History Work: Corporate Archives and the Eastman Kodak Company.
Market watch don't become the next kodak',2012, Retrieved from https://www.marketwatch.com/story/dont-become-the-next-kodak-2012-01-19 Accessed 17 December 2018
Market watch'kodak files for bankruptcy',2012, Retrieved from https://www.marketwatch.com/story/kodak-files-for-bankruptcy-2012-01-19 Accessed 17 December 2018
