Would Kodak’s position be different had the company adopted a different digital imaging strategy in the eighties and nineties? Evaluate Kodaks’ strategy starting in the mid-eighties.
Kodak’s position would have been different under different strategies towards digital imaging in the eighties and nineties.
In the eighties (1983 – 1989)
•Kodak failed to recognize the significance of the digital imaging market. They diversified through acquisitions and hiring, to expand market share and to push for R&D to explore new technologies, especially digital imaging. However, they approached it with the same tried and tested methods of operations, and did not want to let go of their focus and success in the film-based market. (E.g. Kodak was first to introduce image sensor, the core element of digital camera, but did not take advantage of it) •They spent a lot on R&D, launching new products but lacked a central vision or effort towards pushing in the digital camera space. - 1986 launched various electronic image products and electronic photography division was established - 1989, introduced more than 50 products involving electronic image capture or conversions - Kodak had spent $5 billion on R&D costs for digital imaging with no results
•As the leader of the film industry, barrier to entry for competition was high. However when it came to the...