The name “Kodak” might not mean much today, but once, it was synonymous with photography. It became the emblem of a company that “shot itself in the foot,” offering a painful lesson for any business that fails to keep up with developments due to its own mistakes.

The decision not to invest in digital photography, despite having advanced technology and the potential to lead the competition, remains one of the greatest business blunders in history—a mistake followed by many smaller ones.

Kodak was the company that developed the first automatic camera in the early 20th century, making photography a hobby for the masses rather than an exclusive professional activity. It even brought women into the “photography game” by introducing dynamic and independent “Kodak Girls” (who were, of course, also good wives and mothers).

Even in an era when marketing was not as sophisticated as it is today, Kodak succeeded in convincing consumers that it was the ideal—and therefore the only—company capable of perfectly capturing their memories. The phrase “a Kodak moment” became synonymous with family happiness.

By the mid-1970s, the company’s value exceeded $30 billion, making it the largest in the photography industry.
Kodak held an almost monopolistic position globally in film and camera sales. Each roll of film could yield up to $15 in profit—a sum not easily dismissed. From a business perspective, everything seemed to be going perfectly for the company.

In 1975, Steve Sasson, an engineer working for Kodak, invented a camera that didn’t require film. The images were recorded digitally, albeit in low quality. The device was cumbersome and heavy, but its potential was clear.

“Nice, but don’t tell anyone,” was more or less the reaction of the company’s leadership to Sasson’s invention. The problem with the innovation was that it directly threatened Kodak’s business model.

For years, the company displayed a peculiar denial regarding the prospects of digital photography.

This attitude persisted even when, in the early 1980s, Sony, one of Kodak’s competitors, introduced a film-free camera to the market. Kodak then commissioned an internal study to assess the industry’s prospects and whether the classic model was at risk. The study concluded that digital indeed had the potential to replace traditional film, but Kodak had a decade to prepare for the change. Despite having ample time, Kodak did almost nothing to capitalize on it.

Instead, the company tried to use digital technology to support film. In the mid-1990s, it developed a hybrid camera combining digital and analog technology. Photos needed to be printed in a lab to avoid losing film sales. Unsurprisingly, this attempt failed.

As analyzed many times since in marketing theory, they failed to figure out where digital fit into their business model. Nor did they adopt the mindset to become pioneers in digital film.

They assumed consumers would never abandon the ritual of developing film (which, of course, they didn’t do themselves), but digital cameras eliminated that need. Over time, digital quality surpassed analog film—and not to mention the advent of smartphones, which became excellent cameras.

As digital cameras became gadgets, they were sold everywhere electronic devices were found, not just in the photography network that Kodak largely controlled. Gradually, the company lost its “home field advantage” and was forced to compete in a market shaped by its rivals.

It also lost another key demographic it had built over the years—women. The primary users of digital photography were now men, who typically lacked the same inclination to capture family moments.

By 2007, Kodak’s value had dwindled to $140 million, a small player in the photography industry, with its bankruptcy in 2012 marking the predictable conclusion of its decline.

Could nostalgia for classic film revive Kodak’s position? Trends come and go. A mix of aesthetics, curiosity, and perhaps “hipsterism” and romantic yearning for the past has led to a growing demand for film and classic cameras (even secondhand) in recent years.

Can Kodak reclaim the position it once held in the industry? Nostalgia cannot erase the company’s mistakes, nor can it sell forever.