KODAK CASE

Activity N.2

Kodak case

Submitted by:

Dora Isabel Arenas Meneses ID 764332

Kelly Johanna Gonzales Blanco ID 766619

Mónica Sampayo Sánchez ID 76554

María del Carmen Liévano Perdomo ID 726193

Corporación Universitaria Minuto de Dios-UNIMINUTO

Financial Administration NRC 45-10381

Bucaramanga – Santander

2022
KODAK CASE

Activity N.2

Kodak case

Submitted to:

Blanca Eugenia Tarazona Sánchez

Corporación Universitaria Minuto de Dios-UNIMINUTO

Financial Administration NRC 45-10381

Bucaramanga – Santander

2022
 KODAK CASE

Content
Introductión.......................................................................................................................4

Kodak Case Analysis Report.............................................................................................5

1. What was the main problem they interpreted in the case?........................................5

2. What was the role of the administration of financial resources and the impact on

the case?..............................................................................................................................6

3. What were the decisions that did not allow the sustainability of the company?.......6

4. What role undercutting competition played?............................................................7

Conclusions.......................................................................................................................8

Bibliography......................................................................................................................9
 KODAK CASE

Introductión

This paper will analyze the Kodak case, which tells the history of the company Eastman

Company, which was founded in 1888, a multinational company of the United States

dedicated to the design, production and marketing of photographic equipment, as was the

introduction of the first cameras using circular reels. This company led the innovations of

the photography market over a period of 130 years.

 KODAK CASE

Kodak Case Analysis Report

1. What was the main problem they interpreted in the case?

Bankruptcy is a word of terror for large companies, because already when it starts

ringing in all areas of a company is because it is imminent, solutions or resources to save it

no longer exist were exhausted and this affected Kodak.

Interpreting many problems when reading the case of the boom and decline of kodak,

the main problem found in this story of a great innovative company, was that I face

belatedly the actions that were presented in its great competences dedicated to the same

market, where these companies synonymous with stone in the shoe for kodak, used new

digital avant-garde products.

Kodak saw barriers to entry into this new, more innovative market, and with the

arrogance that was characterized by the great supposedly well-structured company with

many years of experience and an outdated model that increasingly alienated the consumer

from that digital revolution that attracted much more attention.

According to the above started with financial problems, trying to invest in new

companies that looked promising, and trying to integrate and compete in that new market or

digital revolution boom, had to spend a lot of resources on the creation of innovative

products, which as you know are a very large research cost that helped Kodak go under a

more, but it was too late to meet consumers already married to the new brands.
 KODAK CASE

According to Pozzi in 2012, a deficit of 6,750 million dollars in liquidations and more

than 1,500 million in debts with its main creditors such as Amazon, Walmart.

This led to the closure of 7 manufacturing plants, 130 processing laboratories for

Digíteles products and ended with a salary of 47,000 employees.

2. What was the role of the administration of financial resources and the impact on the

case?

The role of the Kodak administration was insufficient, as resources were allocated to

research, development and production of obsolete patents, leaving aside analogue image

investments, an increasingly powerful digital era through the implementation of digital

cameras and cell phones.

The financial management, due to the high level of bureaucracy, the financial

management did not make relevant decisions to compete in new markets, they were limited

to select segments of very specific customers, which left them without vision.

3. What were the decisions that did not allow the sustainability of the company?

The lack of foresight and the lack of timely entry into the digital age, allocating

resources to the analog age and putting digital and new products aside, made it

unsustainable for the company.

Governments must compare past and present to visualize the future of images and enter the

market before competition to continue sustainable development.

 KODAK CASE

4. What role undercutting competition played?

In the case of Kodak, the role of underestimating a competitor is clear. One of the worst

strategic mistakes a company can make is underestimating its competitors.

However, it is common to find companies that believe that their competitors are static

and do not develop new growth strategies, this last part is the one that Kodak believes is

one of their worst mistakes due to the numbers in obsolete business models Revolution,

consumers away from the digital environment, based on film and print sales.

All of this led its direct competitors to renew themselves, to enter the market that

consumers wanted, and it could even be said that Kodak committed an undue arrogance

towards competitors who produced and marketed its products, Kodak was only for

production, not for marketing, and was gradually disappearing from the global market, as

from nothing at all.

 KODAK CASE

Conclusions

One of the main problems evident in the Kodak case was the unwillingness to enter a

new market by innovating; consequently, this led to an economic imbalance and then lead

to total bankruptcy. Therefore, this case teaches us that we must always be open to new

ideas if the market requires it so as not to put our company at risk as long as we make a

thorough analysis of all the possibilities of risk.

KODAK CASE

Bibliography

 http://www.razonypalabra.org.mx/N/N79/V79/41_BanuelosPerezVega_M79.pdf

 https://tentulogo.com/kodak-cronica-una-muerte-anunciada/