Market
In between 1996 and 1997, Kodak held almost 80 percent of the U.S market and their products was selling quite well at that time, people were willing to use their roll film and film camera, and this was the main focus of Kodak during that time.
When Fujifilm joined the US market, their target strategy is pried its film just a little bit lower than Kodak’s, since they did that, their market share increased form 10% to 16%, they made a price war to Kodak as their competitive advantage. Still, many people is US preferred use Kodak rather than Fuji, but once consumer tried the Fuji film, they found it was similar products as long as they are cheaper than Kodak’s. Since Kodak should react to the price war, as as Salomon Smith Barney analyst Jonathan Rosenzweig figured that “for every 1 percent cut in Kodak film prices, a 1 percent drop in earnings per share results.”

When the market is shifting form film camera to digital, what happens to Kodak?
Since Kodak was failure to innovate, when the market was changing, they react themselves very slow.
In 1975, Kodak electrical engineer, Steve Sasson invented the first digital camera; on the other hand, the management of Kodak decided to keep this new product, because this digital camera will influence their major products- the film. Later Sony make the digital camera but with high cost. Since the cost of the digital camera was decreasing, more people were willing to purchase digital camera and when Kodak realized the market transforming, which was too late.
After Kodak joined the digital revolution, they made several series of digital camera, according to Stephen Shankland (2008), “in the total camera market; Canon's 18.8 percent share of units shipped gave it the top rank. Next in line are Sony with 16 percent, Kodak with 9.6 percent, Samsung with 9 percent, and Nikon with 8.4 percent, and Olympus with 8.3