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  • Mathieu Provencher

Goodbye Kodak


Kodak came out of bankruptcy three days ago. The firm had to reorganize their focus and abandon the camera market. Note that Kodak (digital) cameras are still sold but they are not produced by Kodak anymore.

Their operations basically stopped because they did not innovate (or copy innovation for that matter) fast enough while the competition presented consumers with brand new products (digital). We call this phenomenon "Creative Destruction", from one of my all time favorite economists: Schumpeter (which, as I do, argued that market power can be a very good thing for consumers too... my theory is much better than his though, as you all know I am sure).

Marketing is definitely a part of that, which brought down the demand for their products faster than would have been the case otherwise (eventually reaching the shut-down price, at which point they went bankrupt). However, an outdated product will eventually go down, whatever the level of marketing you put into it.

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