Why Kodak really failed - The burden of past success

A widespread business myth claims that Kodak collapsed because its leadership failed to anticipate digitalization in time. The reality is quite the opposite. Kodak’s own engineers developed one of the earliest digital cameras back in the 1970s. They saw the future with absolute clarity, but they were burdened by too much profitable present. Manufacturing film, producing chemicals, and processing photos generated massive, dependable cash flow. Embracing the digital format meant deliberately undermining their primary revenue stream for a technology that was not yet commercially viable. In practice, that is a far more agonizing decision than it appears through the lens of hindsight decades later. Kodak serves as a cautionary tale for every established business. What made you successful yesterday can render you incapable of change tomorrow. Sometimes the greatest threat is not the emergence of a new competitor, but the reluctance to abandon your own business model.

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