THE DIGITAL REVOLUTION AND BUSINESS BEHAVIOUR: KODAK VS. FUJIFILM

Abstract

In the 1960s and early 1970s, at the height of the conglomerate movement, many firms started
to acquire companies in industries unrelated to their core business. Up until the mid-1970s
,
there was little change in the top rankings of the corporations, but after that and up until 1995,
over half of firms lost ground in absolute as well as in relative terms. In the film industry,
firms faced a major wave of digitalisation in addition to severe competition among companies
worldwide. Eastman Kodak (Kodak) was the largest photographic filmmaker in the world, established in 1880 and representative of US firms. However, Kodak filed for Chapter 11 protection
on January 19, 2012. The reasons for Kodak’s failure are analysed in comparison to Fujifilm,
the largest Japanese filmmaker. While Kodak has failed to adapt adequately to date, Fujifilm
has succeeding in transforming itself into a solidly profitable business. Why did Kodak fail and
Fujifilm remain competitive?