The Story of Kodak: The Forgotten Photography Monster
How a King of the Industry fell to great depths and what you can learn from it
Kodak was once a synonymous name, not only for experts in the Photography space, but rather a revolutionary figure that put cameras in the hands of millions of people. Established over a century ago, this company has persisted still existing today, but doesn’t hold the same prominence. In fact, those of this generation aren’t even slightly aware of this company, whilst those of the previous generations have seen extravagant amounts of it. This all leads to the overarching question: How did Kodak fail?
Kodak was established in 1888 by George Eastman, who established the brand due to a gap he noticed in the market. He realized that he could lower the price of stationary cameras by taking a loss or subsidizing on the camera and relying on the margins from chemicals and film. The first design of the Kodak Camera was simple, a box-like figure that was able to shoot 100 photos.
Kodak, unlike other brands, possessed two main advantages. At the time when these photography devices cost an arm and a leg, Kodak was selling for much better price, around $25, and offered a variety of additional services as well. Due to the pace of development at the time, factory set-up and distribution was made as simple as possible, even more beneficial for it’s relatively small size.
Secondly, and arguably much more important, was their head, Eastman, who had passion. Eastman had a strong grasp of marketing and knew how to get the brand to new heights. His techniques and strategies was what allowed Kodak to take off so seamlessly in a heavily competitive market. Quoted for the memorable slogan, “You press the button, we do the rest”, he changed the photography landscape from that of purely experts to that of the general public.
Kodak exploded in popularity and it’s success knew no bounds. Within a mere decade, Kodak had sold more than 1.5 million cameras, which was unprecedented at the time. Moreover, their cameras were being used on occasions never seen before, with countless albums being filled and people rushing to buy these devices for weddings or get-togethers.
This development continued, with Kodak constantly launching new designs, products, films, and paper to stylize photos. Throughout the 20th century, they remained a dominant force in the market, having few competitors like Fujifilm. After the global wave of chaos of WW1 ended, the Kodachrome, revolutionary color processing in images, was launched. After WW2, Kodak still retained much of the market, with sales consistently passing the $1 Billion Threshold annually.
Kodak, by the start of the 1970s, was soaring high. Their annual sales were crossing the 3 billion threshold, their film and cameras encompassed the majority of the market, and they were just about to strike ever more success.
In 1975, while experimenting and trying a new form of photography, Steve Sasson, a high-ranking employee at Kodak, developed the first digital camera. Though this showed immense promise and levels above that of their competitors, Kodak decided to keep this out of sight from the public. With the massive high they were at, they didn’t want to launch the digital camera out of fear that it would displace their current cameras and create an opening for their competitors.
This is the biggest mistake Kodak has ever made, and contributes to the majority of their downfall. As we will soon find out, and as many of you are already aware, digital photography is the photography we use now. With capability far surpassing that of previous camera, digital devices shot the camera market to a completely new level, where various companies shone brightly.
By 1980, annual sales are reaching $10 billion and their market share is topping 90%, practically eradicating the competitors from the space itself. All the spotlight is on Kodak and the hype train is larger than it has ever been. To further their reach, Kodak also became the official film for the 1984 Olympic Games and they were edging closer and closer to being a monopoly. This is when everything came crashing down.
Caught up in their success, Kodak failed to see Fujifilm innovating. In 1990, Kodak lost a significant portion of their film sales due to a launch from Fuji that was significantly cheaper and, arguably, higher quality. Moreover, Kodak has observed a decrease in camera sales with the preliminary emergence of the digital camera, from other companies.
Destined to regain an omniscient position, Kodak launched their first digital camera in 1991 and also partnered with Apple to produce their cameras, despite them being branded differently. However, this could not help their drowning sales. Without much brand loyalty or reasoning from Kodak, the people started to switch over to the side of other companies, like Sony, who became a driving force of change during this time. They were clinching on desperately.
This is when Daniel Carp stepped in. Kodak’s story is one filled with twists, and this was one of them. Daniel Carp took what the people wanted, what they loved from Kodak, and carefully began to design a new line of digital cameras to roll out. Once doing this, Kodak reemerged, after a point of almost no certain return. Many thought they would be finished due to the massive economic hit they took during the 9/11 attacks in 2001. However, Kodak wasn’t going to go down without swinging, and became the №1 Brand of Digital Cameras by 2005, holding nearly half the market share.
Just as quick as they reemerged, Kodak collapsed once again. In a highly competitive market, Kodak wasn’t persistent and failed to anticipate the growth of Sony and other companies. After becoming №2 to Sony, Kodak attempted to take a heavier loss on their cameras, losing $60 for every camera sold. Moreover, Fujifilm, Sony, and others all started to take over Kodak’s highly successful film branch.
After 2005, the entire digital camera market was on the decline due to the emergence of smartphones. As these handheld devices got increasingly powerful and provided alternate functions, the need for DSLR and Digital Cameras for the average person faded away. Sadly, Kodak was sinking ever further and couldn’t ever grab the ropes again.
Losing money at a heavy rate, Kodak began to rely heavily on the cash they had deposited years back. They continued making some profit from printers, and later around $800 million in a deal with LG, but never recovered fully. Their stock, which was established as a last-ditch maneuver to save them from collapse in 2013, went from a prosperous $32 to merely $4.
Though Kodak has been in decline and is practically a forgotten company in the 21st century, the impact they left behind has been tremendous. Without them pushing the market, the photography market would likely still be obscure and in shambles. With the vision of Eastman, Kodak created a new market and reigned for over a century. However, like all good things, Kodak came to an end.
What can we learn from the decline of Kodak?
If anything, this story backs the claim of reinvention. Don’t be stagnant. Reinvent and improve yourself. In an ever-changing world, the easiest way to be forgotten is to refuse change.
Kodak could have easily dominated the digital camera market, but out of fear, they refrained from launching their device. Similarly, in our lives we shouldn’t be afraid to take leaps of faith. True, it might not work out how we foresaw it, but you know that you tried, and that itself provides immense fulfillment. If only Kodak tried, it might have even reached the $20 billion threshold.
Lastly, never give up. If you fall, you can always get back up. Take time to reflect, organize, and understand yourself and get back on your feet with double the motivation and double the willpower moving forward. If we have control of anything in ourselves, it’s the mindset we carry.
Hopefully you learnt something from this fascinating story. To hear about more companies or figures of the past, you can follow me or the publication. To get emails or notifications about my posts, you can subscribe here: https://medium.com/subscribe/@ddvhegde100. Thank You for Reading and I hope to see you again.
