Kodak: out of the darkroom and into Blue Oceans Strategy

Kodak: out of the darkroom and into Blue Oceans Strategy

Kodak was once known as the premiere film and camera manufacturer. After all, they’re the ones who pioneered the art of ‘point-and-shoot.’ They’re the ones who made it possible to capture the image of that family vacation to Disney World, or that first White Christmas.

However, with the dawn of the digital area, Kodak was left trapped in its own darkroom, a victim of its own core business. And with digital cameras being introduced by ambitious new players, the market quickly reaching critical mass, and Kodak needed to find a new way forward.

A recent BusinessWeek article discusses Kodak’s current pursuit of Blue Oceans Strategy, as well as some of the hick-ups along the way. Realizing that competing head-to-head in the digital camera market led to shrinking profits and bloody Red Oceans, Kodak, led by Chief Executive Antonio M. Perez, came to the harsh realization that it’s core camera business was actually what was strangling the company.

Now, Perez is reinventing the Kodak business model: “He aims to make Kodak do for photos what Apple does for music: help people to organize and manage their personal libraries of images. He's developing a slew of new digital photo services for consumers that he expects to yield higher returns. “

Ditching the old business model, as well as the competition…Now that seems to ring a few bells. What other companies do you see making similar decisions to start their business anew, and to pursue Blue Oceans Strategy? Share your thoughts with us.