A curious tale - The Rise and Fall of Kodak
kodak days
From a dominant position in photographic film in the 20th century to filing for bankruptcy in 2012, the story of Kodak is a cautionary tale of what happens when companies fail to learn from their mistakes.
Founded in 1888 by George Eastman, Kodak revolutionized photography by making it accessible to the masses. Its slogan, “You press the button, we do the rest,” epitomized its mission to simplify photography for everyday users.
However, Kodak’s success became its undoing. In 1975, an engineer at Kodak named Steve Sasson invented the world’s first digital camera. Despite this breakthrough, Kodak’s leadership chose to bury the innovation, fearing it would cannibalize their lucrative film business. This decision marked the beginning of Kodak’s decline.
As digital photography started gaining popularity in the late 1990s and early 2000s, Kodak remained focused on its traditional film products, underestimating the speed of technological change. While companies like Canon, Nikon, and Sony embraced digital photography, Kodak clung to its outdated business model, convinced that film would continue to dominate.
This refusal to adapt — a form of cognitive dissonance — sealed Kodak’s fate. In 2012, the company filed for bankruptcy, a shocking end for a once-unstoppable force in photography. Kodak’s downfall serves as a cautionary tale of what happens when companies prioritize protecting the status quo over embracing innovation.
Had Kodak embraced its own digital technology, it could have led the charge in the digital revolution. Instead, it became a victim of its own success, unable to learn from failure or adapt to a rapidly changing market.
In his book Black Box Thinking, Matthew Syed refers to this as cognitive dissonance — a psychological barrier that makes it difficult for individuals or organizations to admit they were wrong. Kodak's refusal to acknowledge that the industry was shifting toward digital photography ultimately led to their downfall. In contrast to the airline or Formula One industries, Kodak wasn’t willing to adapt and learn from its environment, resulting in its rapid decline.
Read more about the fear of failure on our blog here.
