1. At what stage on the S-curve is digital photography?

2. Kodak had a promising entry into the field of digital photography, first by inventing the digital camera and then by being first in sales in 2005. How could the company have failed to capitalize on innovations that it created?

3. Suppose that in 1975, you were an upper-level manager at Kodak, and you recognized the potential in digital cameras, but your peers did not. What could you do to help implement this change?

Most companies can only dream of having their trade name become synonymous with their product. Known as a generic trademark, this phenomenon typically occurs only once the product has gained substantial market share and, more importantly, mind share—the epitome of market success for many consumer products.

Founded in 1888, for most of the 20th century, Kodak held, by far, the dominant market share for photographic film. In 1976, Kodak supplied 90 percent of film sold in the United States, and 85 percent of cameras sold. For more than a century, Kodak’s trademark was easily one of the world’s most recognizable brands. At the height of its success, Kodak was worth an estimated $20 billion and employed almost 145,000 people. Kodak film was so popular and universal that Kodak’s advertising slogan “a Kodak moment” became a common expression used to describe an event that was so important or memorable that it should be committed to film. By early 2012, however, the Eastman Kodak Company had filed for bankruptcy protection. Share prices had steadily dropped from a high of $45 to $0.40, and the company employed fewer than 15,000 people. 

Many believe that Kodak was simply put out of business by the invention and immediate popularity of digital photography, but few realize that Kodak was a pioneer in the development of digital photography, and, in fact, invented the first digital camera in 1975. The camera was specifically and intentionally ignored by Kodak management, however, because Kodak feared cannibalizing its extremely profitable film business. When Sony released the first digital camera in 1981, Kodak recognized that change was coming, but still sought to protect the film division through aggressive marketing and promotion strategies of its iconic photographic film.