The fall of Kodak

Résumé du document

Nowadays, technology plays an increasingly important role in our society. Technology is everywhere. It is the reason why, more companies must not hesitate to use it to stand out with more interesting ideas and concepts. Currently, we have to recognize the factor that changed the overall picture of the use of the computing equipment as new basis for business.

However, the impact of technology disruption phases and technology evolution phases created most of the time, some internal business turbulences. Within this framework we will study the launching of digital technology for photography as one of the clearest disruption in the last decade.

The digital camera was invented around the 80th. In the end of the seventies, a Kodak engineer invented the first digital camera. However, Kodak did not make the decision of its development. The American firm made the choice of staying focused on film camera business that is the most profitable and core business for the company. It is the reason why, few years later, in 1981, Sony launched the Mavica, the first digital camera in the market.

It was the first camera enabling to watch photos on TV or print them with a special printer. In opposition with Kodak, Sony made a wager on the digital technology by financing its development. The Japanese firm did forecast a digital revolution consequently.

Extraits

[...] Until now, we can enhance five key functions of the photography. First of all, for several generations, the photography has a role of memory. Indeed, people are used to take photos in order to immortalize a moment. Secondly, photography assumes a role of creation with an artistic impact on the society. Finally photography has a function of information, distraction and conversation[1]. So we will see in the second part how the digital photography make possible those last photography's functions. Part 2 Disruptive technology, Launching of the digital camera technology Definition of digital technology as a disruptive technology A disruptive technology is an innovation, which create a new market replacing an established market. [...]

[...] Within this framework we will study the launching of digital technology for photography as one of the clearest disruption in the last decade. The digital camera was invented around the 80th. In the end of the seventies, a Kodak engineer invented the first digital camera. However, Kodak did not make the decision of its development. The American firm made the choice of staying focus on film camera business that is the most profitable and core business for the company. It is the reason why, few years later, in 1981, Sony launched the Mavica, the first digital camera on the market. [...]

[...] It is why, we considered its business model as secured. In addition of that, Kodak mastered all microfilm technology and the company had an expertise in medical photography applications. Positioning on the market You press the button, we do the rest has been the Kodak slogan since almost its creation. With the film's invention in 1884, Kodak established oneself as a precursor and rapidly become the leader on the market. Its monopolistic position enables it to flood the market and give a good representation of the American success story. [...]

[...] From the digital technology launch, the film is become, in few years, an obsolete product. Why did it succeed? New way of using Digital technology brings users new possibilities of using. One of the major changes brought by this innovation is to enable people to screen photos before having them printed. Indeed, with a classic film camera, people had to develop their photos without seeing them before. Consequently, digital technology allows people to take more photos in quantity but print fewer photos according to the quality of them. [...]

[...] For instance, there were films with or 36 photos. Nowadays, people can take an unlimited number (thanks to performant memory cards) without print them automatically. Consumers are able to proceed to a selection with the digital technology. It is the reason why we can say that digital technology influences the way people use camera and take photos and what they do with them after. In addition, film product as cameras and films' development are become obsolete. Evolution of computing equipment In the last decade, people's computing equipment is hugely increased. [...]