Kodak Is Going Bankrupt

The tides of progress consume another victim: Kodak is apparently prepping to file for Chapter 11 bankruptcy. The company is trying to sell its massive portfolio of patents, but so far there have been no takers. Apparently, the company would need to secure $1 billion in order to keep it alive during the bankruptcy process.

Kodak was founded in 1892 and had a dominant stake of the camera film industry for nearly a century. In 1976, Kodak dominated its competition, having 90% of film sales and 85% of camera sales. The company couldn’t survive digital photography, however. The company’s longstanding dominance led to an unimaginative corporate environment that failed to take digital photography seriously, delaying their entry into the field until it was too late.

While they managed to capture the top spot among camera manufacturers, they failed to anticipate how quickly the market would commoditize. Before long their massive investment in marketing and product development left them floundering as cheaper competitors ate away their reserves. Things were so bad in 2001 that Kodak was losing $60.00 for every digital camera it sold.

Kodak finally began licensing its name to other companies for brand recognition, devaluing the brand as a whole. now Kodak really doesn’t have much of an identity at all.

RIP, Kodak. May whoever buys you treat you better than your management did.

Engadget Photo by : Joost J. Bakker