Kodak was a pioneer in photography technology from the late 19th century until the early 2000s. It introduced roll film and mass-market cameras like the Brownie, dominating the photographic industry. However, Kodak was slow to transition to digital photography despite inventing the first digital camera in 1975. When digital cameras replaced film in the early 2000s, Kodak's business model collapsed as film sales plummeted. Kodak filed for bankruptcy in 2012, unable to complete the transition from film to digital that disrupted its entire industry.
2. Contents
• Dry plate-film to color
Film
• Color film-dawn of
Digital technology.
• Competitive Strategy &
threats.
• Fall of Kodak.
• Rajan Nhemaphuki
• Kusal Kafle
• Pushkar Khanal
• Rajesh Dhakal
3.
4. Back in the 19th
Century the
Eastman Dry
Plate Company
produced the 1st
camera that
weren’t invented
for the
professionals.
5. How Eastman did it?
Technology
as
innovation
trigger
George
Eastman developed
& patent a machine
to coat plates in
1879
Dry plate/ gelatin
process by invented
by Dr. Richard L.
Maddox in 1871
In 1878, Bennett
improve the gelatin
process
6. In 1880 Eastman began commercial
manufacture of dry plate.
Businessman Henry A. Strong was
impressed with its success.
On January 1, 1881, Eastman and
Strong partnership to form Eastman
Dry Plate Company.
Innovation to Entrepreneurship
7. • In 1884, Eastman
patented the first film
in roll form.
• In 1885 it started
manufacturing paper
film named “Kodak”.
• The cameras were so
successful that the
“Kodak” word was
incorporated into the
company name.
Disruption From Dry Plate to Roll Films
8. • The Eastman Kodak
Company was founded in
1892.
• By targeting non
photographers, Kodak
created a huge market.
9. Snap-Shot Feature
• In 1900, Eastman
introduced Brownie, a
simple and very
inexpensive box camera
with snapshot.
• Brownie camera allowed
consumers to take their
own pictures.
• They could then mail the
roll of film to Kodak to
develop.
14. Growth
• People loved to take
photos, and as they
became richer, they
took more photos…
• And thus, Kodak
made more money
and kept growing,
and growing.
26. Just like Gillette made great money by selling razor
blades, Kodak made great money by selling film.
The main source of profit was not the razor or the camera, it was the
continuous consumption of blades and film.
30. In mid-1960, NASA photograph 99% of moon
surface by using photographic system develop by
Kodak
Kodak technology was also on board Apollo 11,
when first men walked on moon.
32. With signs, Kodak also sought to encourage
people to take a lot of photos…
33. 1st Digital Camera
• Steven Sasson invented
the first digital camera
at Eastman Kodak in 1975.
• It weighed 8 pounds
(3.6 kg) and had only
0.01 megapixels. The
image was recorded onto
a cassette tape and this
process took 23 seconds.
• His camera took images
in black-and-white.
• He envisioned for the
future was a camera
without mechanical
moving parts.
34.
35. HOW DID KODAK RESPONSE?
But it was filmless photography, so management’s reaction was,
‘that’s cute—but don’t tell anyone about it.’
via The New York Times (5/2/2008)
36. 1976:The Bayer Pattern color filter array (CFA) was invented
by Eastman Kodak researcher Bryce Bayer.
37.
38. Kodak management’s inability to see digital photography as a
disruptive technology, even as its researchers extended the
boundaries of the technology.
Kodak continued producing film roll cameras.
39. 1976: Kodak introduced the first
Kodamatic, instant picture cameras,
using a similar film and technology
to that of the Polaroid company.
40. • 1976: The company sold
90% of the photographic
film in the US along with
85% of the cameras.
•
New Kodak Moment: A
$19M profit
50. CEO, Barabba conducted a very extensive
research.
Good News
• It would take about 10
years Digital
Photography to take
over film based
business.
• And Kodak has roughly
ten years to prepare for
transition.
Badness
• Digital Photography
had potential to replace
Kodak’s film based
business.
51. Kodak Strategy
• Continue production of the film based camera technology.
• Expansion in many countries.
• Diversification in medical imaging, pharmacy, batteries
• And also R&D in Digital Photography
52. Kodak’s Challenges
• Kodak used to be exceptionally integrated
vertically, owning the entire value chain, from
basic research to photo finishing.
• However, in the digital world, everything would
be different.
• The digital value chain could not be dominated in
the same way – Compaq, HP and others were
leaders in the PC market, Adobe dominated
image software, in printers Canon and HP were
leaders.
54. Solutions
• Kodak therefore launched many joint ventures
with these firms, since the company did not
possess these resources on their own.
• With the launch of the digital DC40 in 1995,
Kodak teamed up with Microsoft, HP, IBM
and tried to create an infrastructure for digital
imaging.
• Kodak, Olympus and Sanyo all cross licensed
thousands of patents in digital imaging.
55. later on Kodak developed the sensor into a digital back, which
was built in to a Nikon camera in 1991.
1986: Kodak scientists created the world's first megapixel sensor
59. Kodak Digital Avantrix Preview (1996)
• Kodak spent $500M to
develop and launch.
• Features
• Shot preview
• No. of print
• But it still use Films
60. Why buy a digital camera and still pay for film
and prints?
Advantrix preview was huge failure
61. CEO GEORGE FISHER
“regarded digital photography as the enemy, an evil juggernaut that
would kill the chemical-based film and paper business that fueled
Kodak’s sales and profits for decades.”
via The New York Times (12/25/1999)
63. • In 1997-98, CEO Fisher
had to fire 20 000
people, mainly because
Fuji lowered their prices
and expanded.
• Kodak also responded
by entering emerging
markets such as China.
64.
65. Once the shift occurred, it was faster
than anyone could have imagined…
66. 2004: Kodak announced that it would stop selling
traditional film cameras in Europe and North
America, and cut up to 15,000 jobs
67.
68. January 2005: The Kodak EasyShare-One Digital Camera,
the world’s first Wi-Fi consumer digital camera capable of
sending pictures by email, was unveiled
75. Standard & Poor’s Equity Research
Analyst Erik Kolb commented on the
results:
“They were late to the game in their shift to
digital and they have been playing catch-up
since.”
76. Christian Sandström holds a PhD from Chalmers University
of Technology, Sweden. He writes and speaks about disruptive
innovation and technological change.
77. Kodak did embraced Digital Technology
Then, Why If Kodak wasn’t late, why did the
company encounter such great trouble…?
78. One of reason is Recession
“During the last three months of the year, we experienced dramatic declines in several of
our key businesses due to the slowdown in consumer spending and significantly reduced
demand for capital equipment” // CEO Antonio Perez
79. Next: People stopped buying Films.
• Many of Kodak’s key resources and capabilities
became virtually useless with this change
• The global distribution network lost its value.
• People used PCs instead of photo finishing labs.
• The supplier network for producing film was also
rendered obsolete.
• Knowledge in chemistry and film manufacturing
became an obsolete asset.
• The value of film and paper manufacturing sites
was literally demolished.
81. Thus, the shift to digital imaging implied that
Kodak’s capital in terms of skills, processes, market
position etc was destroyed…
82. • To make thing worse,
mobile camera started
to disrupt the compact
camera.
• Sales of compact
cameras actually
decline in 2005 and
continue to do so ever
since
83. Kodak Dilemma
So much investment has been made in
Chemical, Paper, Film industries,
it is almost difficult to suddenly shift into
risky digital era
86. In 2012 Kodak filed Bankruptcy
&
Also declared it will quit
photography business.
87. Kodak sold its patent to companies like Adobe, Amazon, Apple,
Facebook, Fujifilm, Google, HTC, Huawei, Microsoft, RIM, Samsung
and Shutterfly.
The portfolio was said to be worth around $2.5 billion, but Kodak
settled for the $525 million. Partially, that’s because Kodak isn’t in the
position to negotiate. But it’s also because Kodak extensively licensed
these patents to other companies.
88. Lessons we can learn:
• External environment can be deceiving
• Change happens
• Greatest strength can be weakness
• Innovation is not the perfect solution
Gelatin emulsions, as proposed by Maddox, were very sensitive to touch and mechanical friction and were not much more sensitive to light than collodionemulsions. Charles Bennett discovered a method of hardening the emulsion, making it more resistant to friction in 1873. In 1878, Bennett discovered that by prolonged heating, the sensitivity of the emulsion could be greatly increased. George Eastman developed a machine to coat plates in 1879 and opened the Eastman Film and Dry Plate Company,[1] reducing the cost of photography.
In 1880, he began the commercial manufacture of dry plates. Success of this venture so impressed businessman Henry A. Strong, that he invested some money in the infant concern.
On January 1, 1881, Eastman and Strong formed a partnership called the Eastman Dry Plate Company. Late that year, Eastman resigned from his position at the Rochester Savings Bank to devote all his time to the new company and its business. While actively managing all phases of the firm's activities, he continued research in an effort to simplify photography.
In 1884, Eastman patented the first film in roll form to prove practicable; he had been tinkering at home to develop it. In 1888, he perfected the Kodak camera, the first camera designed specifically to use roll film. In 1892, he established the Eastman Kodak Company, in Rochester, New York. It was one of the first firms to mass-produce standardized photography equipment. The company also manufactured the flexible transparent film, devised by Eastman in 1889, which proved vital to the subsequent development of the motion picture industry.
The use of photographic film was pioneered by George Eastman, who started manufacturing paper film in 1885 before switching to celluloid in 1889. His first camera, which he called the "Kodak," was first offered for sale in 1888. It was a very simple box camera with a fixed-focus lens and single shutter speed, which along with its relatively low price appealed to the average consumer. The Kodak came pre-loaded with enough film for 100 exposures and needed to be sent back to the factory for processing and reloading when the roll was finished
Kodak became a household name. Kodak moments, Kodak days, ’to Kodak’, the company defined consumer photography and the brand became very strong. Kodak change into verb just like google today.
In 1912 kodak released Vest Pocket Camera , which weight 10.5 ounce, one inch in width when compressed and sold by millions by time when production stopped in 1926.
The Cine-Kodak was the first 16mm camera, introduced in 1923. It was a rectangular cast aluminum box approximately 8 inches square, and was cranked by hand at two turns per second to achieve the necessary 16 frames per second. Hand turning meant that a tripod was essential while allowing varying speeds and single frames to be taken. Accessories such as lenses and a motor attachment became available later. Production ceased in the mid 1930s.
To my friend my work is done. Why wait?
Black and white logo of kodak
In 1935 kodak change its logo, colorfull
Kodak logo changed in colorful logo.
In 1960 kodak changes its logo like paper bird, kodak collaborating with nasa.
New logo, focused on market penetration.
Steven was kodak electrical engineer.
The digital camera record photo in film tape and was only 0.01 megapixel and also black & black
It was unfit for manufacturing.
Barak obama awarding national medal of technology and innovation to steven sasson in 2009.
A Bayer filter mosaic is a color filter array (CFA) for arranging RGB color filters on a square grid of photosensors. Its particular arrangement of color filters is used in most single-chip digital image sensorsused in digital cameras, camcorders, and scanners to create a color image. The filter pattern is 50% green, 25% red and 25% blue, hence is also called RGBG,[1][2] GRGB,[3] or RGGB.[4]
Bayern pattern is widely used in photography, printing of colour in newspaper, magazine etc even now (2015). As well as now it is for digital color photography.
1981: Kodak was sued by Polaroid for infringement of its Instant Picture patents. The suit ran for five years, the court finally finding in favour of Polaroid in 1986
Fuji is major competitor for the kodak,
In 1981, the industry was shaken when SONY launched their Mavica, a camera that used floppy discs instead of film.
All film producing company were totally shocked. They saw mavica as a threat to the film roll industry.
CEO, Barabba conducted a very extensive research.
The results of the study produced both “bad” and “good” news. The “bad” news was that digital photography had the potential capability to replace Kodak’s established film based business. The “good” news was that it would take some time for that to occur and that Kodak had roughly ten years to prepare for the transition.
All pointed to the conclusion that adoption of digital photography would be minimal and non-threatening for a time. History proved the study’s conclusions to be remarkably accurate, both in the short and long term.
1986: Kodak scientists created the world'sfirst megapixel sensor, capable of recording 1.4 million pixels and producing a photo-quality 12.5 x 17.5 cm (5×7 inch) print.
It looked like a pair of binoculars, could store 32 photos and was the first camera that could be connected to a PC.
The choice to use digital as a prop for the film business culminated in the 1996 introduction of the Advantix Preview film and camera system, which Kodak spent more than $500M to develop and launch. One of the key features of the Advantix system was that it allowed users to preview their shots and indicate how many prints they wanted. The Advantix Preview could do that because it was a digital camera. Yet it still used film and emphasized print because Kodak was in the photo film, chemical and paper business. Advantix flopped. Why buy a digital camera and still pay for film and prints? Kodak wrote off almost the entire cost of development.
Fisher oversaw the flop of Advantix and was gone by 1999. fisher meant kodak was not adopting the digital technology full since top management committee wanted to produced film based camera even sony made maven(image stored in floppy drive) in back 1981.
Kodak stock is higest in 20th century (2000). Kodak and fuji kept competing in film based technology.
Purple:Digital camera…….Blue:no. of film based camera .
From 2000 kodak share price and market share kept continuous decline. Film based technology was loosing battle against the filmless digital cameras.
Digital technology was improving very rapidly..kodak demolish its several building because demand for films were declining rapidly.
Furthur cut in jobs.
Carp admitted digital filmless photogtraphy has taken over the kodak film based technology.
In 2006, kodak change it logo
If kodak adopted quickly that means only looses since there are many competitors and also its chemical business will be completely destroyed. so it choose slow pace.By moores law digital technology is exponentially developing. Kodak was doomed to fail.