Question

Kodak recently declared Bankruptcy. It used to be one of the ‘super’ firms and industry leader.

• Why did Kodak experience failure?
• What are they doing now to recharge their position in the market?

Please answer the questions in at least 200 words

Answer 1

ANSWER:

Kodak inability to adapt to new marketplace and new consumer attitudes were the main causes of it's failure. The company was so blinded by its success that it completely missed an increase in digital technologies. Consequently, the company remained stuck in the lower end of the digital camera spectrum and could never compete it’s rivals in the high end of the spectrum, which is where the maximum of the profits are. Its management not only presided over the creation technological breakthroughs however was also presented with inaccurate assessment of market about the risks and opportunities of such capabilities. The company’s failure lay in its strongly inward focus.

The circumstances required Kodak to internally improve its operations to be more cost effective and improve its productivity to counteract its increasing costs. However instead Kodak assert influence on other side of operations in business and looking forward for joint ventures and acquisitions in diversified portfolio of business and start entering in the markets for which it has no or little experience. These practices proved as disastrous one for Kodak. To improve it's position today the company is focussing to increase the control over existing market of Kodak for chemical based imaging business, diversify business practices of Kodak, make Kodak leader in electronic imaging, and decreasing the costs and improving the productivity