Strategic Drift and Kodak Report (Assessment)

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One of the central reasons for the decline and failure of Kodak was the inability to correctly evaluate the current situation and disregard of digital technology and opportunities that were associated with it. The given strategic failure also resulted from the corporate blunders that were inevitable regarding the corporate culture peculiar to the company at that period. By 2011, the traditional photography business was eroded by digital cameras and smartphones with a turnover of about $6 billion. It became fatal for Kodak, which experienced a gradual deterioration of its competitive advantage because of the inability to respond to new changes. The company made incorrect conclusions about the future of traditional photography and its ability to compete with innovations that started to penetrate the market. In such a way, Kodak’s dismissive response to new trends was one of the primary causes of the strategic drift.

At the same time, because of the wrong idea about the future of the sphere and the evolution of the film sphere. Instead of devoting much attention to innovative devices, Kodak viewed digital as the method to enhance film business, and this idea failed. Additionally, the corporate culture of the company and its adherence to traditional values impacted the choice of a new CEO Whitmore known for its interest to film business. The given decision influenced the future evolution of the company and its failure to consider new technologies as a way to remain beneficial and preserve the competitive advantage. In such a way, the primary reasons for strategic drift include the wrong analysis of the situation, inability to predict the development of technology, and too conservative corporate culture that was not able to accept new trends and the need to start working with digital technologies as the contribution to the future growth.

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