The Downfall of Kodak: A Case Study in the Danger of Forecasting-Only Strategy
Introduction Eastman Kodak once stood as a symbol of American innovation and corporate strength. Throughout the twentieth century, the company dominated global photography, controlling nearly 90 percent of the film market and earning steady profits from its integrated ecosystem of cameras, film, and processing chemicals. Its name became synonymous with memory itself. Yet by 2012, Kodak had filed for bankruptcy after years of decline (Lucas & Goh, 2009). While the popular explanation attributes Kodak’s downfall to digital technology, the deeper cause was strategic blindness. The company relied heavily on traditional forecasting models that extrapolated past sales trends and ignored structural change. Its leadership assumed that consumer habits, film demand, and photographic culture would evolve slowly and predictably. This misplaced confidence prevented Kodak from adapting to digital imaging and new business ...