Published on : Jul 15, 2016
Advancements in technology are crucial for the development of innovative products. At the same time, if companies do not keep themselves updated about the recent technological developments, they can lose out in the competition. For a brand, apart from marketing strategies, continuous product development is pivotal to maintain its position in the market. There have been several instances where reputed companies have lost out to their new rivals in the market due to their stubbornness to continue with an obsolete technology.
Kodak Invented Digital Camera but Failed to Predict the Future Business
A glaring example is of Kodak. A decade ago, the brand Kodak was very successful. However, with the advancements in digital technology, the company failed to upgrade its products. It is interesting that the first prototype of a digital camera was created by an engineer working for Kodak. Though Kodak invented in the digital technology, it failed to invest in it. In 2012, the company sold its site Ofoto to Shutterfly as part of its plan when it faced bankruptcy. The site was sold at a mere US$25 mn.
The example of Kodak has been ideal for its competitors. Kodak had the potential to understand the future of digital camera. It invented digital camera, invested in the technology, but failed to realize that the new business would be online photo sharing, not printing photos.