Why Kodak failed — and how to avoid the same fate
Kodak experienced difficult times, which caused a stir in the media. An organization like the CBS News posted an article titled “Why Kodak failed — and how to avoid the same fate” (https://www.cbsnews.com/news/why-kodak-failed-and-how-to-avoid-the-same-fate/). The news coverage as a form of an article described some of the reasons why a photography giant came to file for bankruptcy. It is a real pity, and the article is sympathetic to the organization. Also, it has some positivity as it shows people how to avoid taking such directions. Also, the same disgraceful year, Aljazeera published an article titled, “Kodak rolls into bankruptcy” (https://www.aljazeera.com/news/americas/2012/01/201211971834313953.html). The article portrays Kodak as a company that made terrible decisions, thus its failure. The negativity in the article is hugely felt as there is an emphasis on the vice carried out.
Many stories were developed since it was an attention-seeking chance. The business insider developed a story that talked about, “Kodak’s Meteoric Rise And Fall” (https://www.businessinsider.com/kodak-bankruptcy-2011-10). The story focused on the reasons why the giant failed and majored in what it missed to do.
The guardian was not hesitant in also showing the world that it had information concerning Kodak .it wrote an article titled “Kodak falls in the ‘creative destruction of the digital age’; (https://www.theguardian.com/business/2012/jan/19/kodak-bankruptcy-protection). The story focused on discussing the major setback for the company. It aimed at showing how not following trends in digitalization and technology brought about the downfall of a photography giant.
Kodak came up with different designs that showed it is due to come back to life. Media published some journal that discussed the processes and steps taken by the giant. One article was written by the Newyorker “Kodak’s old-school response to disruption” (https://www.newyorker.com/business/currency/kodak-and-the-analog-response-to-disruption). Also, another media journal published by Yanko design highlighted the steps the giant is to take to take back its position as a photography giant: “KODAK’S MAKING A GRAND COMEBACK WITH THIS COMPREHENSIVE SMARTPHONE PHOTOGRAPHY KIT!” (https://www.yankodesign.com/2019/09/13/kodaks-making-a-grand-comeback-with-this-comprehensive-smartphone-photography-kit/).
Many people talked about the fall of the organization. It usually experienced that people will speak negatively during a downfall. Such a trend was not exceptional for Kodak. The thrash and negative words were lushed at the company. The main speakers were influential leaders of organizations; they majorly described the mistakes that could have been prevented. One interview is visible on youtube, https://youtu.be/UmItuAN21MU. Another example is https://www.youtube.com/watch?v=YZpIzStAfTw.
Kodak lost almost 2.5billion dollars through bad investment according to the financial statements from the company. The books suggest losses in different attempts of investment failure
(https://seekingalpha.com/article/317623-prepare-to-buy-kodak). In 1988 the company tried to
diversify its market by acquiring a chemical-based industry, Sterling. The move to buy such an
industry seemed prudent and wise for the first time, but since there was little research done on
the relation of the product and the raw material used by the organization, disaster struck.
Kodak had bought Sterling for about 5.1billlion dollars, the unerring ending of the deal
after realizing dissimilarity in the chemical composition of the paper and desired agent led to
Kodak selling Sterling for half the original buying price
(https://tohoku.repo.nii.ac.jp/?action=repository_action_common_download&item_id=125229& item_no=1&attribute_id=18&file_no=1). The annual report of the organization as of 2007 plunged to 140million (https://www.wsj.com/market-data/quotes/KODK/financials). Such figures showed how the company was declining and moving to bankruptcy declaration. These were negative aspects of failed investments for the company.
Eastman Kodak did not have a newsroom where it released information about the crisis. Instead, it used the Southern District of New York, Business Wire, to make it known to the public. The business insider writes, “it’s official: Kodak is bankrupt” (https://www.businessinsider.com/kodak-bankruptcy-19-2012-1)
Some of the key messages communicated in response to the crisis we’re in line with the comeback strategies. The attempt to file for bankruptcy is also essential for the organization as is sought methods of being redeemed from the mess. Also, these new strategies are seen in the mission and vision statement, which is a form of evidence that Kodak is ready to bring back authenticity and quality, customer-oriented service. The pan will surely work as customer satisfaction is a priority.