Kodak was once one of the world’s most famous photography companies. For decades, people used its cameras and film to photograph birthdays, weddings and…
For much of the twentieth century, Kodak was one of the world’s most successful photography companies. Its cameras and film were used to record birthdays, holidays, weddings and family events. The phrase “a Kodak moment” became a popular way to describe an experience worth photographing. However, Kodak later became a famous example of a company that failed to adapt quickly enough to technological change.
The company began with George Eastman, an American businessman who became interested in photography in the late nineteenth century. At the time, taking photographs required heavy equipment, glass plates and chemicals. Eastman believed photography should be simple enough for ordinary people.
In 1888, he introduced a small Kodak camera loaded with enough film for 100 photographs. When the film was finished, customers sent the whole camera back to Kodak. The company developed and printed the pictures, added new film and returned the camera.
Kodak advertised this service with the slogan, “You press the button, we do the rest.” Customers did not need technical knowledge. They only had to point the camera and take a picture.
Kodak’s business model was highly profitable. The company earned money from cameras, but customers also continued buying film and paying for photograph development. In 1900, Kodak released the Brownie camera for one dollar. It was cheap, light and easy to use, helping to make photography an everyday activity.
Kodak understood that it was not simply selling cameras. It was selling memories. Its advertising encouraged people to record important moments, and its products became ubiquitous. For many years, Kodak was the dominant incumbent in the photography industry.
However, Kodak’s dependence on film eventually became a major weakness. Digital photography did not require film, photographic paper or chemical processing, threatening the products that generated most of the company’s profits.
Surprisingly, Kodak helped invent digital photography. In 1975, Kodak engineer Steven Sasson created one of the first digital cameras. It was large, took black-and-white pictures and needed 23 seconds to save an image. Although it was not ready for consumers, it proved that photography without film was possible.
Kodak invested in digital cameras, printers, scanners and image sensors. However, it struggled to find a digital business model as profitable as film. Digital products also created the risk of cannibalisation. By promoting digital cameras, Kodak would reduce sales of its own successful film products.
The company also suffered from organisational inertia. Its factories, workers and systems were built around film production, while digital photography required expertise in electronics, software and rapid product development. Changing the whole organisation was difficult and expensive.
Kodak believed people would continue printing most of their photographs. It invested in printers, ink, photographic paper and printing machines. However, consumers increasingly viewed pictures on computers, sent them by email and later shared them through social media.
Kodak also faced strong competition from companies such as Sony, Canon and Nikon, which already had experience in electronics. As digital cameras became easier to manufacture, the market began to commoditise. Prices fell, products became harder to distinguish and profit margins became smaller.
Kodak sold many digital cameras, but they were less profitable than film. Smartphones then created an even greater threat because people could take, edit and share photographs using one device. As phone cameras improved, fewer consumers bought separate compact cameras.
After years of financial difficulties and job losses, Kodak filed for bankruptcy protection in 2012. It later returned as a smaller company focused mainly on commercial printing and imaging technology.
Kodak’s story is not simply about a company that ignored digital photography. It understood the technology and even helped create it. Its main problem was its dependence on a successful but outdated business model.
Kodak thought it was mainly a film and camera company. In reality, it helped people capture and share their lives. When consumers began doing this through screens, smartphones and social media, other companies took its place.
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