Struggling Giant: Kodak's Transition from Film Empire to Financial Crisis
In the late 1880s, George Eastman founded Kodak after inventing a dry plate formula and patenting a machine for preparing large numbers of plates. His success attracted businessman Henry A. Strong, leading to the formation of the Eastman Dry Plate Company in 1881, which later became the Eastman Kodak Company in 1892.
The Kodak camera, introduced in 1888, revolutionized photography by making it accessible to the masses. One of the most iconic products of its time, the Kodak Brownie Camera, introduced in 1900, sold for just $1 and film was 15 cents a roll.
However, Kodak's dominance in the photography industry began to wane in the late 20th century with the rise of digital photography. Despite inventing the world's first digital camera in 1975, Kodak struggled to adapt to the digital shift.
The company's leadership underestimated the disruptive nature of digital photography and clung to their established film business for too long. Their digital products were seen as low-quality, failing to appeal to intermediate or professional users. Kodak's international expansions were also unsuccessful, draining resources without generating sufficient returns.
These strategic miscalculations, combined with overconfidence in their traditional film business and poor product offerings, led to a long-term decline in competitiveness and ultimately financial instability. In 2012, Kodak filed for bankruptcy due to the combined pressures of rising competition, digital disruption, and growing debt.
After restructuring and winding down traditional operations, Kodak faced years of financial struggles. As of 2025, the company reported $500 million in debt. In a Securities and Exchange Commission (SEC) filing, Kodak announced that there is "substantial doubt" about the company's ability to stay in business.
To save its business, Kodak pivoted from consumer photography to commercial printing and technology. Today, Kodak's website states that it is mainly focused on business solutions, but it still manufactures films and chemicals, and participates in consumer markets through various marketing and partnership agreements.
Despite the challenges, Kodak remains confident in its ability to remain operational. A spokesperson asserted that the company is confident in its ability to pay off a significant portion of its term loan before it becomes due within 12 months. Kodak has also attempted to revive its brand through licensing deals and collaborations, such as with Forever 21 on a clothing collection and Urban Outfitters to sell its products.
The future of Kodak remains uncertain, but the company continues to strive for reinvention in the face of adversity.
References:
- The New York Times
- The Guardian
- Forbes
- Business Insider
- The Washington Post
- Kodak, despite its historical significance in the photography industry and early ventures into digital technology, struggled to stay afloat in the changing finance markets of the late 20th and early 21st centuries, accruing substantial debt and facing questions about its long-term viability (The New York Times).
- In an effort to avoid bankruptcy and navigate the digital shift, Kodak shifted its focus from consumer photography to commercial printing and technology, relying on capital from various credit sources (The Guardian).
- Under increased pressure from competitors and rapidly evolving technology markets, Kodak's portfolio has become increasingly diverse, including business solutions, film and chemical manufacturing, and consumer market collaborations (Forbes).
- To address its debt issue and maintain a strong financial position, Kodak has prioritized repaying a significant portion of its term loan, expressing confidence in its ability to do so within the given timeframe (Business Insider).
- The reinvention of Kodak's business model remains a work in progress, with the company continuing to leverage technology, finance, and strategic partnerships to maintain its relevance and compete in a rapidly changing market (The Washington Post).
