For some of us who grew up with Kodak as a household name, and have always grabbed the camera while trying to capture moments by saying "Kodak it!" instead of "Take a picture", I also couldn't believe my ears when I heard the news.
The following was contributed by my friend Robin Gonzales.
Second Look
by Robin Gonzales
The Fall of Kodak
For what seemed like from time immemorial, Kodak cameras and film were a part of every household. Special moments were always incomplete without the familiar Kodak camera to capture them. Likewise, the Kodak film roll that photo shops would never run out of was always a best seller. It seemed like the Kodak Company was a permanent fixture on the world’s psyche. No one would have predicted then that the year 2012 would see the Kodak Company to file for bankruptcy.
The dawning of the digital age has changed a lot of things. One of the inevitable changes was the obsolescence of the traditional camera and film pair. The prevalence of digital cameras and ready cameras on phones, tablets and the pc has doomed the camera and film pair. Though Kodak has continued to develop digital cameras, the market in the digital world was a lot more crowded than the traditional camera and film world where it so easily dominated. With steep competition from brands such as Nikon, HP, Canon and the inability to compete with the other brands’ technology, Kodak now faces its inevitable fall.
Kodak over the years, maintaining its identity
The Wall Street Journal has reported the Kodak Company is preparing to file for Chapter 11 Bankruptcy in the coming weeks ahead if it fails to sell a trove of digital-imaging patents. Since then, Kodak shares have fallen to an all time historic low. In the decade before 2011, Kodak has reportedly lost 95 percent of its company value to competition and the digital revolution. The New York stock exchange has warned that it plans to delist Kodak as a trading company shall the value of its shares stay unusually low for a long period. It seems the once legendary Kodak giant has fallen to its knees.
All is not hope for the once iconic and invincible photography company. The company has invested heavily in digital inkjet printers and revenue from that part of the company’s sales has risen a staggering 13 percent. If Kodak hopes that the printer and software industry will triple in the short future ahead, it may be able to make a comeback on those products. The company is also in the midst of selling patents, property rights and in the midst of talks for loans to keep it afloat.
No one knows for certain what the future holds for Kodak. Whether it can weather the storm it faces or fall victim to it instead, only time will tell. What is certain is that with so many technological revolutions, Kodak is not the only company that will face such tough times ahead. As always in a free market system, the free hand will favor those companies who remain competitive and disfavor those who do not. It’s a story of survival of the fittest and no matter how iconic and successful a company has become in the past, the fortunes of the times change as fast as direction of the wind.
