In 1975, Kodak was the world's most powerful photo company, worth $31 Billion.
By 2012, they were completely bankrupt...
Not because of competition or technology - but because of ONE fatal decision…
Here's the biggest business mistake in history (and how to avoid it): 🧵
By 2012, they were completely bankrupt...
Not because of competition or technology - but because of ONE fatal decision…
Here's the biggest business mistake in history (and how to avoid it): 🧵
It's 1975, and Kodak owns photography:
• 90% of film sales worldwide
• 85% of camera sales
• $10B in annual revenue
• Millions in pure profit everyday
One engineer was about to change everything...
• 90% of film sales worldwide
• 85% of camera sales
• $10B in annual revenue
• Millions in pure profit everyday
One engineer was about to change everything...
A young engineer named Steve Sasson walks into Kodak's lab:
"I've invented a camera that doesn't need film"
The room goes silent.
The prototype works perfectly.
Kodak's response? Would shock everyone...
"I've invented a camera that doesn't need film"
The room goes silent.
The prototype works perfectly.
Kodak's response? Would shock everyone...
The executives were clear:
"Bury it" "Patent it" "Tell no one"
Their reasoning?
Film made them $15 per roll.
Why kill a cash cow?
"Bury it" "Patent it" "Tell no one"
Their reasoning?
Film made them $15 per roll.
Why kill a cash cow?
The digital camera could destroy their empire:
• 2.5B rolls of film sold yearly
• 60% profit margins
• Billions in processing equipment
They had too much to lose. Or so they thought...
• 2.5B rolls of film sold yearly
• 60% profit margins
• Billions in processing equipment
They had too much to lose. Or so they thought...
1995 changed everything:
Digital cameras flood the market
Their competitors race to adapt
Kodak's response?
Double down on film and disposable cameras
Digital cameras flood the market
Their competitors race to adapt
Kodak's response?
Double down on film and disposable cameras
Its 1996 and the disposable camera strategy seemed to work:
Still 4th most valuable company
Disposable cameras were booming
Billions in film sales
Reality was about to hit hard...
Still 4th most valuable company
Disposable cameras were booming
Billions in film sales
Reality was about to hit hard...
By 2005, the numbers were brutal:
Digital camera sales: Exploding
Film sales: Plummeting
Kodak's stock: Down 75%
Yet they clung to film until the very end...
Digital camera sales: Exploding
Film sales: Plummeting
Kodak's stock: Down 75%
Yet they clung to film until the very end...
January 2012:
Bankruptcy declared
28,000 employees let go
142 years of history ended
All because greed made them bury tomorrow
Bankruptcy declared
28,000 employees let go
142 years of history ended
All because greed made them bury tomorrow
The greatest irony?
Kodak invented the digital future
Then killed it to protect the past
Today, their patents from 1975
Worth more than their entire company
Kodak invented the digital future
Then killed it to protect the past
Today, their patents from 1975
Worth more than their entire company
The lesson?
Sometimes your biggest threat
Isn't your competition
It's your own success
Blinding you from innovating
Sometimes your biggest threat
Isn't your competition
It's your own success
Blinding you from innovating
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