The Near Death Of Eastman Kodak Company Essay

835 Words Oct 10th, 2016 4 Pages
According to Parnell (2014), a company has to be aware of their industries external environmental factors because of the effects that they can have on the organizations strategic decisions. The near death of Eastman Kodak company is a direct result of the company failing to respond quickly enough to the evolving world of technology and societies demands to shift from film to digital photography. For Kodak, the advent of digital photography was ruinous (Hardy, 2015). Once a powerhouse in the film industry, the company is now just a mere shadow of what it once was. At the peak of its season, the Kodak company was a household name with as much as $19 million in sales, 145,000 employees, housed in the 200 buildings that once stood on the 1,300-acre campus in Rochester; now it drives a mere $2 million in profits, has 8,000 employees and suffered a significant downsizing of the campus through the years (Hardy, 2015).
For an outsider looking in, there doesn’t appear to be any reason for Kodak to be in the shape that it is today. Kodak employed the engineer who invented the first digital camera that was patented in 1978 and held more than 1000 digital-imaging patents but they chose not to introduce their first digital camera until 2001; much later than the competition because they feared it would harm their photographic film business (Parnell, 2014). Kodak had somewhat anticipated the demand for film would decline, but they expected this to happen very gradually and that they…

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