1. Compare to competitors, one of Kodak’s guidelines is aggressive marketing and consumers focus to manufacture user-friendly and superior products. As such, the customers liked Kodak’s offering and felt no need to pay for enhanced products by competitors products. The slogan “you press the button, we do the rest” and the retailer relationships helped shape Kodak’s success.
Another driver is the Kodak’s business model. They early adopted the razor-blade strategy: since the inception of the company, they aim to sell to low priced hardware together with a high price films.
Furthermore, innovation is the heart of the Kodak identity and helped them displace competitors.

2. Technological differences between traditional imaging and digital imaging resulted in an organizational and structural changing. Traditional imaging was primarily a horizontal organization from film to paper whereas digital imaging resulting in a vertical organizational structure. This new structure attracted many new entrants. Thus the customers were provided with many new products and value propositions. As the exhibit 9 show highlights, the worldwide traditional imaging sales have dropped over the years. Thus, digital imaging has led to segmentation of customers based on prices, quality of images, user friendliness and type of storage. Each company should focus on a particular segment and try to maximize its appropriation and thereby the profit margins.

3. In 1981, Kodak did not see the Sony Mavica as big threat because they felt people liked color print and was slow to respond because of their historical revenue model. Film were generating a lot of profits for Kodak and they did not believe that launching a digital camera will generate a high profit. It’s the reason why the moved their core business toward a B to B model. They believe that their skills and expertise in the chemical field