Disruptive

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According to disruptive innovation concept, a clear intervening factor is observed with the revolution of digital camera in the early 1990s, they brought different attributes conventional camera which roll film did not have. In addition to, the replacement of film with sensor and memory card made digital camera more convenient and easier to use. Initially digital camera was not so much popular among the customer because of low resolution, quality and high price. But at later because of technological improvement it widely accepted by professional photographers and hobbyists who initially have ignored early digital cameras. And this widely acceptance, harmed the film- based photographic companies. According to Schmidt & Druehl, 2008, “the digital camera technology has the effect of disrupting the market of film based camera and roll film as a high end - encroachment”. It can seen that, during the emergence of digital technology, Kodak didn’t drive to the new technology because of their booming photographic industry, even when their business was less important and less relevant in the new value network. If we look at the case it can seen that, Kodak was not actually ignorant the disruptive which is reflected by the pioneering the first digital camera as well as many other digital technology related innovations. In contrast, one surprising fact is that Kodak had actually waited 20 years to commercialize its digital camera innovation for consumer market. In fact, during digital camera revolution they gave more focus on photographic film

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Disruptive theory

Transcript of Disruptive

According to disruptive innovation concept, a clear intervening factor is observed with the revolution of digital camera in the early 1990s, they brought different attributes conventional camera which roll film did not have. In addition to, the replacement of film with sensor and memory card made digital camera more convenient and easier to use. Initially digital camera was not so much popular among the customer because of low resolution, quality and high price. But at later because of technological improvement it widely accepted by professional photographers and hobbyists who initially have ignored early digital cameras. And this widely acceptance, harmed the film-based photographic companies. According to Schmidt & Druehl, 2008, the digital camera technology has the effect of disrupting the market of film based camera and roll film as a high end - encroachment. It can seen that, during the emergence of digital technology, Kodak didnt drive to the new technology because of their booming photographic industry, even when their business was less important and less relevant in the new value network. If we look at the case it can seen that, Kodak was not actually ignorant the disruptive which is reflected by the pioneering the first digital camera as well as many other digital technology related innovations. In contrast, one surprising fact is that Kodak had actually waited 20 years to commercialize its digital camera innovation for consumer market. In fact, during digital camera revolution they gave more focus on photographic film rather than new innovation which forced them to bankruptcy. And they moves slowly about new innovation because it seemed to them film business would be profitable and people will always need it. Because the main fact was they control the film & camera business for decade and during that time they didnt face major threat from the competitors. However, Kodak strong assets was its wide and global network of retailers, these retailers were an essential part of the film business value network where customers necessarily need them. And Kodak thought like that, its strong capability and control in terms of distribution and retailer network will still continue to be a valuable competitive advantage. However, during the revolution of new innovation, disruptive innovation has created a new value which makes technology empowered customers become the companys own competitors. Kodak made some wrong decision during 1980s and 1990s, Kodak believed that: The digital revolution was not going to happen. Any disruptive innovation will allow them to get advantage of their current film offerings Current customers dont demand it andOverly, Kodak was late to the game in terms of shifting from analog to digital era. Even though, they started working with digital imaging from early 1980s and stopped marketing film cameras in 2004. And it was too late for Kodak because customer already stopped buying film because of that Kodaks key resources and capabilities became useless, which lead them to bankruptcy. Eventually, it was destructive for the Kodak because only for the disruptive innovation.