1/3KODAK AND THE DIGITAL REVOLUTION (A)Ques6on 1. Evaluate Kodak’s strategy in tradi6onal photography. Why has the company beenso successful throughout the history of the industry?The ini?al strategy of Eastman Kodak revolved around four key guiding principles:•Mass Production and Commercialization: George Eastman was able to transformphotography which was limited to professionals and labor intensive and place a camerainto almost every American household with introduction of film rolls. Mass productionhelped in lowering costs and brought high margins. Therazor blade strategyhelped inselling cameras at a low cost which acted as the primary driver of film roll sales fromwhere the business recovered high profits•Marketing:Kodak invested in marketing and extensive advertising. It’s slogan like ‘Youpress the button, we do the rest’ and ‘Kodak moment’ reinforced the simplicity whichKodak had brought to photography. Like DeBeers attached emotional sentiment todiamond, Kodak marketed by establishing that capturing special family moments was aresponsibility of wives and females became the most lucrative segment for Kodak in yearsto come•Distribution: Kodak also focused on building relationship with retailers and establishing astrong distribution network. It enhanced sales through demonstration of its cameras inshops and helping customers through the technological change. The strong retail networkhelped in channeling the large volume to the masses•Investment in Research:It was innovation and technological breakthrough of film rollsthat had brought Kodak into existence. Kodak continued investment in research whichincluded color film which was risky and could lead to losses. But Kodak persisted with thesame while other firms lagged behind giving Kodak absolute dominance in world market.