How Fear of Change Led to Kodak's Downfall

How Fear of Change Led to Kodak's Downfall. Photo: Kodak

Before the world of photography blossomed into what it is today, much of its foundation was laid by George Eastman, the creator of the modern camera and the iconic brand, Kodak.

However, despite its groundbreaking innovations, Kodak's journey came to an abrupt halt in 2013. The reason? A reluctance to embrace change and an inability to adapt to the challenges of the times.

The Rise of Kodak

In the early days of photography, cameras were enormous, roughly the size of a microwave. Taking a picture required lugging around a large tripod, glass plates, and a variety of chemical solutions—an incredibly cumbersome process. Nonetheless, for photography enthusiasts, these challenges were worth overcoming.

George Eastman experienced this firsthand during a vacation to the Dominican Republic in 1878 when he carried all the cumbersome equipment at a hefty cost.

As noted by Elizabeth Brayer in George Eastman: A Biography (2006), Eastman soon realized that his hobby was not only expensive but also impractical. This led him to investigate ways to streamline the process.

After reading a scientific journal about the chemical formula necessary for producing an image, Eastman spent three years perfecting the process.

Despite numerous failures, he eventually succeeded in creating "dry plates" for photography, sparking the founding of Eastman Dry Plate Company in 1881. Seven years later, alongside William Hall Walker, he unveiled the modern analog camera, Kodak.

With Kodak, taking photographs became accessible to everyone, regardless of their professional expertise. The company not only simplified photography but also introduced color imagery, embedding itself deeply in the history of photography worldwide.

The Stumble at Innovation

Despite its legacy of innovation, Kodak’s tragic narrative took a turn in the 1970s. It was during this decade that engineer Steve Sasson invented the digital camera—technology that would eventually reshape the entire photography industry.

According to WE Forum, this invention could have propelled Kodak to new heights; however, the company's leadership had a conservative mindset.

Sasson recounted his experience in a 2008 interview with the New York Times, stating, "It’s good, but don’t tell anyone." The company’s executives viewed Sasson's creation as fraught with problems, including slow processing times, low resolution, and bulkiness.

They believed that acknowledging the potential of digital cameras would jeopardize Kodak's existing analog products, risking the company's livelihood.

Consequently, Sasson's dream of a digital camera bearing the Kodak name was buried. Fast-forward two to three decades, the photographic landscape rapidly evolved, and digital cameras—dismissed by Kodak—became the standard.

By then, Kodak had already lost its competitive edge as other manufacturers seized the opportunity to develop the very technology that Kodak had ignored.

The Inevitable Decline

Repeated failures to innovate plunged Kodak into deeper financial trouble. Ultimately, their inability to adapt led to the company declaring bankruptcy in 2013—a sad end for a brand that once symbolized innovation in photography.

Kodak’s story serves as a powerful reminder that in business, the fear of change can have dire consequences. In a rapidly evolving world, companies must be willing to listen to their employees and adapt to new technologies, or they risk fading into obsolescence.