Kodak’s Strategic Errors in the Period Since 1990

Subject: Strategy
Pages: 2
Words: 372
Reading time:
2 min

Kodak has been the leading company in photography had gained consumers’ confidence as a quality production company. Its success in making the company more advanced in technology had given it a competitive advantage over others, giving it a better place in the market economy. However, Kodak as an organization is known to have made a critical mistake that has cost it since the early 1990s. Some of these mistakes, commonly referred to as wrong strategies, are outlined in the sections that follow. A mainly spoken of failure that Kodak made was its move towards inventing the digital camera. This happened in 1975, and then the project that had cost the company much in terms of finances, time, and human resources has had to be adopted to make the project a success.

It was later on, after having wasted much time, that the company realized how valuable this project would be to its success. The very worst mistake that Kodak made was its step towards acquiring almost all firms that dealt with films after its competitors overcrowded the film market, seeking to frustrate Kodak’s efforts as the company with the leading camera consumers. This was seen in 1976 when Kodak, from nowhere, decided to venture into photography. This was too hasty and was ignored later. During the same year when Kodak decided on photography, it also made a major wrong strategy by reconsidering a copier-making project.

Regarded as a long-term and critical project to the company’s success, this project was given much attention, and so much was invested into it, but it only lasted up to 1997 when just like the previous it too stopped. This happened despite Kodak’s copiers having been regarded as the best in the market then. In between when Kodak decided on making copiers and its failure time, the company settled on doing video recording, another strategic blunder. This, too, like the other projects, did not last for long. The main reason for this project’s failure is a market rivalry with its competitors. The market was already overfilled with VHS, and one is left wondering whether the decision was made under sober circumstances.