Read the case and answer the below questions Introduction to Kodak and Fujifilm Eastman Kodak and Fujifilm dominated the photographic industry for decades until the early 2000s when digitalization revolutionized the industry. The two companies started by selling film and then extended to focusing on photographic film and equipment. They had highly similar business models, product development histories, product portfolios, and market foci. In the year 2001, they both had com-parable levels of total revenue, number of employees, and market share in the world film market. However, in January 2012, Kodak, the legendary American photographic film and equipment firm, filed for bankruptcy protection. Kodak, an industry pioneer and technology innovator, rapidly lost its century-long dominance of the film, camera, and photo-finishing industries in the face of the digital disruption to photographic technologies. Faced by the same disruption, the Japanese firm Fujifilm, Kodak's long-term rival, successfully re-created itself and diversified in to new profitable areas. Since Fujifilm was established almost 50 years later than Kodak, before the year 2001, the decade-long competition between the two companies had been characterized as a chase by Fujifilm trying to catch Kodak. After the first 10 years of establishment, the company grew fast and quickly started to branch in other sectors. Along with photographic film, the company also started producing motion picture films and X-ray films. On top of that, it also stepped into the optical glasses, lenses, and equipment market. Its business further continued to grow as Fujifilm. Later on, the company also entered the sector of printing, magnetic materials, and electronic imaging after the Second World War. Entry of Fuji in to the US Market Though Fuji was enjoying the leading position in the camera film market in Japan, it was looking for ways to beat Kodak, particularly in the US market. However, none of its strategies were much fruitful until 1984, when it gained the opportunity of being the title sponsor of the Los Angeles Olympics. Kodak first received the proposal for this opportunity, but they turned it down. Fujifilm gained huge market exposure by using the scope of title sponsorship, which resulted in brand awareness of the company among the consumers. Later on, they started offering cheap camera films that further increased their popularity in the US market. Consequently, Fujifilm was able to gain substantial market share in the US, and they also established a film factory over there. One of the most noticeable corporate practices of Fujifilm is- they never stopped spending on R&D and they never stopped exploring new markets. Fuji introduced its DS-1P camera in 1988.The distinctive strategies followed by the two companies at the watershed event of digital disruption around the same year led the two companies to different paths and eventually different fates. By the end of 2016, Fujifilm's total revenue was almost13 times higher than Kodak's ($20.769 billion vs. $1.543 billion as of December2016) and the firm employed 13 times more workers than Kodak (78,150 vs.6,100). Economic Responsibility Christensen's seminal work on disruptive innovation concluded that incumbent firms almost always stumble over this type of innovation In fact, Kodak's management team consulted Christensen regarding their digital dilemma and followed his advice to make simple and affordable digital cameras. While this strategy increased Kodak's U.S. market share, it did not sufficiently transform the company to meet the disruptive challenges. Kodak's failure by extending Christensen's model and suggested that the resistance to change among middle managers, the culture of the company dominated by a strong belief as "Kodak meant film," and the hierarchical structure at Kodak led to failure in adopting the disruptive digital technology. While the success of Fujifilm in navigating the digital disruption seemed quite amazing, no detailed study has been completed on Fuji-film to compare it with Kodak in terms of their strategies and courses of action. Fall of Kodak The early 1990s was the golden period of Fujifilm. Since its market was rapidly flourishing both at home and away. Even in 2001, the world witnessed a spike in film. However, there is a saying that goes "a peak always conceals a treacherous valley. The imaging industry experienced substantial changes in the few subsequent years as digital technologies hit the market. As a result, global demand for photographic film plunged significantly and in 2010, the demand went down to less than a tenth compared to its demand in 2001. The digital wave had caused many companies to fall down and Kodak is one of them. Cameras went digital and then disappeared into cellphones. People went from printing pictures to sharing them online. Sure, people print nostalgic books and holiday cards, but that volume pales in comparison to Kodak's heyday. The company filed for bankruptcy protection in 2012, exited legacy businesses and sold off its patents before re-emerging as a sharply smaller company in 2013. Once one of the most powerful companies in the world, today the company has a market capitalization of less than $1 billion. The next explanation is that Kodak mismanaged its investment in digital cameras, overshooting the market by trying to match performance of traditional film rather than embrace the simplicity of digital. That criticism perhaps held in early iterations of Kodak's digital cameras. Fujifilm survived market shrink back then. After 2001 when the company went through a rapid drop in sales from the most profitable products, Fujifilm made an instant decision of changing its business model through innovation as well as external growth. Shigetaka Komori, who joined Fujifilm in 2000, took a 6-year plan named Vision 75 aiming to save Fujifilm from falling and regain profitability. As a step of implementing the plan, Fujifilm had to cut costs by decreasing the production lines and getting rid of seemingly unnecessary plants. It also reformed its R&D to keep pace with the digital camera industry. However, Fujifilm could ultimately realize that the camera sector is not going to be as profitable as before because of the modular design of cameras which required minimal expertise to assemble and make a camera. So there were seemingly few market barriers, and the number of competitors was increasing day by day. Gradually, making it a less profitable and price-sensitive industry. So finally, Fujifilm started thinking about investing in businesses other than photography. It carefully audited its capabilities and innovation. The company also has a large amount of in-house technology that could match the demand of some other business sectors. Taking all those into consideration, it took the decision of investing in cosmetics, pharmaceuticals as well as highly functional materials like LCD screens which was a growing market back then. With the help of already available technologies, Fujifilm came up with FujiTac, which were high-quality films used in producing LCD panels. Today, FUJITAC is leading the LCD polarizer film market. Innovative Culture Organizational culture has a direct impact on innovation in that it can either stimulate or inhibit innovation. Innovation refers to the ability to design, invent, and develop or initiate new services or product lines. It can also refer to the ability to come up with new ways of doing things in an organization (Mullins, Walker & Boyd, 2013). The main driving force of innovation is creativity, which has to do with using one's reasoning and thinking capabilities to conceptualize an idea before actualizing it. Through creativity, a person is able to build on an existing idea by identifying the gaps and coming up with a completely new idea. It is, therefore, important for organizations to put in place mechanisms to make sure that managers and leaders are encouraged and assisted in discovering their talents and potentials and using them positively for the benefit of their organizations Christensen Theory of Sustaining and Disruptive Innovation Companies need to innovate with their products and services to be competitive in the marketplace (PwC, 2012). Clayton Christensen's theory of 'sustaining and disruptive innovation' is one of the most popular theories to understand how innovative new entrants beat the long standing successful companies like Kodak. Christensen (1997) in his popular book The Innovator's Dilemma, distinguishes two types of innovation i.e. sustaining, and disruptive innovation. Interestingly, Kodak has been through both types of innovation and couldn't withstand the disruptive innovation of digital imaging after 1975. Sustaining Innovation is based on developing current technologies that in overall improve the performance of established products being either of radical character or of an incremental nature. In contrast, "disruptive" innovation introduces new products or services that may not be standard as of currently available products but with other dimensions such as simpler, convenient, cheaper and accessible (Christensen, 1997). Kodak with its introduction of film rolls was "disruptive" as the company made photography much easier and affordable to the masses. Kodak kept on improving their performance of black-and-white film rolls to better films, in colour and of high quality, all of which were sustaining innovation for the company. The emergence of Digital cameras, similar to film rolls, added a different dimension to photography. It wasn't about competing on quality anymore. People back then adopted digital for entirely different reasons other than quality. Thus, the innovator's dilemma for companies like Kodak is whether to focus on current customers or to focus on a new population of consumers with lower-margin opportunities.In hindsight, it seems Christensen's claim of established companies face difficulties dealing with the disruptive technology has come true with Kodak. But was "disruptive innovation", the reason behind the failure of Kodak? Fujifilm Group Green Policy Through all products and services and businesses, we will strive our contributions to "sustainable development" by initiative to address climate change, promote resource circulation, ensure chemical safety, preservation for regional environment and biodiversity conservation. The Fujifilm Group's business originated with motion picture photographic film, a product for which lots of clean water and fresh air are essential to the manufacturing process. It is also a product which requires customers to "buy on trust," since they cannot try it out beforehand. Thus, for the Fujifilm Group, an approach which emphasizes environmental conservation and maintaining the trust of stakeholders has been a major premise at the very foundations of our business activities. This approach is the starting point for our corporate social responsibility (CSR) activities and continues to be passed down within our Group, as the Fujifilm Group's "DNA." The Fujifilm Group's Approach to CSR The Fujifilm Group's approach to corporate social responsibility is to contribute to the sustainable development of society by putting our Corporate Philosophy into practice through sincere and fair business activities. We will not only fulfill our economic and legal responsibilities, but also: endeavor to understand global as well as local environmental and social issues and create value to address these issues through our business activities. continue to evaluate the environmental and social impact of our business activities and strive to improve the performance while increasing our positive impact on society. constantly reassess whether our activities are responding adequately to the demands and expectations of society through proactive stakeholder engagement with our stakeholders. enhance corporate transparency by actively disclosing information. CSR Activity Report Introductions for the CSR activities of the Fujifilm Group. Environment, health, daily life, work style, supply chain, and governance details. They have a sustainable value plan by 2030 . Environment Reduce our own environmental impacts and contribute to the resolution of environmental issues. Since the Industrial Revolution, range of environmental issues can be experiences everyday. Continuing rises in sea levels and extreme weather resulting from climate change, depletion of our land resources, destruction of our forests, water pollution and depletion of water resources and changes in our ecosystems and many more . To achieve sustainable development, the whole of the Fujifilm Group around the world is working on various environmental issues under its Green Policy so that it can also be the leading company in the environmental field. In addition to reducing the environmental impact on production activities, they focus on cutting CO2 emissions and making effective use of water and other resources across the entire product lifecycle, reaching as far as the use and disposal of our products by our customers. The marine plastics problem, which has been attracting social attention, is another priority issue to overcome to shift to a circular society. The important point is increasing resource recycling across various aspects of business activities and in the products and services that is provided to society Health Create a healthy society through the process of prevention, diagnosis and treatment in healthcare. One of the goals set out under SDGs is to "achieve universal health coverage (UHC), ensuring that all people can access essential quality health services without facing financial hardship." During the course of the COVID-19 pandemic across the world, it has become clearer that there are many people who cannot receive sufficient treatment for the disease, not only in countries with less developed medical infrastructures, but also in advanced countries. The Fujifilm Group is striving forward in the development and dissemination of new therapies for unmet medical needs, where effective treatment is still to be found. The rapid aging of society is proceeding in Japan, and population and economic growth are advancing in emerging countries. As a result, these countries are experiencing expanding medical demands, giving rise to a variety of problems, such as the insufficient number of doctors and nurses, their harsh working conditions, and regional disparities in medical services. The death rate from infectious diseases is still high in developing countries, and eradication of infectious diseases, such as AIDS, tuberculosis, and malaria, is also one of the SDGs. The Fujifilm Group is contributing to the establishment of a sound medical environment and to supporting medical staff to realize disease prevention, make early diagnoses, and provide early treatment through combining our exclusive technologies Daily Life Support the tangible and intangible aspects of social infrastructure in people's lives through various products, services and technologies. As industrial and economic development proceeds urbanization, our lives have become more convenient and comfortable. At the same time, however, stress and a sense of isolation from society have surfaced as serious issues Internet crime, spread along with the rapid advancement of the information society, careless digital data management, and the deterioration of infrastructure are some of these risks. The Fujifilm Group continues to develop and disseminate new technologies that address such ever-changing social risks to minimize their possible damage. In concrete, we are contributing to building a safe and secure society by offering secure means of digital data storage over a long period of time in this big data era, improving information security, and helping to maintain the infrastructure. Contribute to enriching and making people's lives peaceful through records of photos and videos, and photographic products that give form to memories Work Style Promote social change where every person is motivated in the workplace through extending our in-house work style reforms. Work styles that enhance people's creativity through offering to reform means of communications. For example, Use automate business processes by seamlessly connecting multifunction devices and document information input through such devices. This can drastically improve productivity. At the same time, we plan to utilize our exclusive advanced technologies, such as natural language processing and image recognition, which we have cultivated over the years, along with AI and Big Data analysis, to extract valuable information. Read the Above case and answer as per the requirement 1. Why did Kodak fail miserably but Fujifilm not only survived but thrived after the digital disruption in the photographic industry. 2. The 2030 Agenda is a call to action for companies to achieve the SDGs, and it is currently the national and international standard for guiding companies towards sustainable development. Discuss on the CSR activities of Fujifilm that are related to the sustainable development . 5. Christensen's claim of established companies face difficulties dealing with the disruptive technology has come true with Kodak. But was "disruptive innovation", the reason behind the failure of Kodak. Summarize and explain the theory of Christensen.