BFS Kul 1 What is a Business Feasibility Study Presentasi Google Chrome 2024 09 12 12 42 55

Awaludin Ridwan

11 Sept 202403:51

Summary

TLDRKodak, once a photography giant, failed to adapt to digital technology despite inventing the first digital camera. Their overoptimistic market analysis and hesitance to transition from film to digital allowed competitors like Canon and Sony to dominate. Kodak's slow decision-making and internal resistance to change led to a significant loss of market share. By 2012, Kodak filed for bankruptcy, teaching us the importance of quick adaptation to market changes, avoiding overreliance on existing revenue streams, fostering organizational flexibility, and considering unforeseen risks.

Takeaways

📸 Kodak was once a dominant player in the film and photography market but faced a crucial decision with the emergence of digital technology.
🔄 Despite inventing the first digital camera in 1975, Kodak struggled to adapt to the shift from film to digital photography in the early 2000s.
📉 Kodak's feasibility study recognized the rise of digital photography but underestimated the speed at which consumers would adopt digital technology.
💼 The company's market analysis was overly optimistic about film demand, leading to significant investment in film while delaying a full commitment to digital.
🤔 Kodak hesitated to fully embrace digital technology due to concerns about cannibalizing their lucrative film business.
🚫 This hesitation led to missed opportunities as competitors like Canon and Sony advanced in the digital camera market.
⏳ Kodak's feasibility study projected a gradual decline in film sales, but the actual decline was much faster than expected.
🏢 The company faced significant internal resistance to change, with senior executives deeply invested in the film business.
🔄 Kodak's structure was not agile enough to adapt quickly, and its decision-making processes were slow and cumbersome.
📉 Kodak underestimated key risks such as rapid technological innovation and the rise of smartphones, which revolutionized photography.
📉 By the time Kodak entered the digital market, they had lost their edge, and in 2012, they filed for bankruptcy.

Q & A

What was Kodak's initial response to the emergence of digital technology in the late 20th century?
-Kodak struggled to adapt to the digital technology shift despite inventing the first digital camera in 1975.
What did Kodak's feasibility study in the early 2000s highlight?
-The study noted the rise of digital photography and the fall of the traditional film market, but Kodak underestimated the speed of consumer adoption of digital technology.
Why did Kodak hesitate to fully embrace digital technology?
-Kodak was concerned about cannibalizing their lucrative film business, which led to hesitation in fully committing to digital technology.
How did Kodak's competitors, like Canon and Sony, capitalize on the digital shift?
-Competitors like Canon and Sony advanced in the digital camera market while Kodak hesitated, allowing them to capture market share.
What was the projection of Kodak's feasibility study regarding film sales?
-Kodak's feasibility study projected a gradual decline in film sales, which allowed for a steady transition to digital.
What internal factors contributed to Kodak's failure to adapt quickly to digital technology?
-Kodak faced significant internal resistance to change, with senior executives deeply invested in film, creating a barrier to digital technology adoption.
How did Kodak's organizational structure impede its ability to adapt to market changes?
-Kodak's structure was not agile enough to adapt quickly, and its decision-making processes were slow and cumbersome.
What unforeseen risks did Kodak underestimate in their market analysis?
-Kodak underestimated key risks such as rapid technological innovation and the rise of smartphones, which revolutionized photography.
What was the ultimate outcome for Kodak in the digital market?
-By the time Kodak entered the digital market, they had lost their edge and filed for bankruptcy in 2012.
What are the key lessons that can be learned from Kodak's failure to adapt to digital technology?
-The key lessons include adapting quickly to market changes, avoiding overreliance on existing revenue streams, encouraging organizational flexibility, continuously updating feasibility studies, and considering unforeseen risks.

Outlines

00:00

📸 Kodak's Struggle with Digital Transformation

Kodak, once a leader in the film and photography market, faced a pivotal decision in the late 20th century with the emergence of digital technology. Despite inventing the first digital camera in 1975, the company struggled to adapt. Kodak's feasibility study recognized the rise of digital photography and the decline of traditional film but underestimated the speed of consumer adoption. The company's market analysis was overly optimistic about film demand, leading to continued investment in film and delayed commitment to digital. Kodak's technical capability to produce high-quality digital cameras was overshadowed by concerns about cannibalizing their film business. This hesitation allowed competitors like Canon and Sony to advance, while Kodak's internal resistance and slow decision-making hindered adaptation. The company's failure to pivot effectively resulted in a significant loss of market share, and in 2012, Kodak filed for bankruptcy. The key lessons from Kodak's experience include the need for companies to adapt quickly to market changes, avoid overreliance on existing revenue streams, encourage organizational flexibility, and continuously update feasibility studies to consider unforeseen risks and disruptive technologies.

Mindmap

Keywords

💡Digital Technology

Digital technology refers to the use of electronic devices and systems to process, store, and transmit information. In the video's context, it is the emergence of digital photography that posed a significant challenge to Kodak, a company that was once dominant in the film and photography market. The script mentions that Kodak invented the first digital camera in 1975 but struggled to adapt to the shift from film to digital, which eventually led to their downfall.

💡Feasibility Study

A feasibility study is an analysis conducted to evaluate the potential for success of a project or venture. In the video, Kodak's feasibility study noted the rise of digital photography and the decline of the traditional film market. However, it underestimated the speed at which consumers would adopt digital technology and overestimated the demand for film, leading to strategic missteps.

💡Market Analysis

Market analysis is the process of assessing a company's market position and the potential for growth or decline. The video highlights that Kodak's market analysis was overly optimistic about film demand, which led them to maintain significant investment in film while delaying a full commitment to digital. This analysis failure contributed to Kodak's inability to adapt quickly to market changes.

💡Cannibalization

Cannibalization in business refers to a situation where a company's new product or service takes market share away from its existing products or services. Kodak hesitated to fully embrace digital technology due to concerns about cannibalizing their lucrative film business, as mentioned in the script. This fear of cannibalization resulted in missed opportunities and allowed competitors to gain an edge in the market.

💡Competitors

Competitors are businesses that offer similar products or services and compete for the same customer base. The script points out that while Kodak was hesitant to transition to digital, competitors like Canon and Sony advanced in the digital camera market, capitalizing on the shift that Kodak failed to embrace effectively.

💡Technological Innovation

Technological innovation refers to the development or introduction of new products, processes, or ideas that significantly impact the market. The video discusses how rapid technological innovation, particularly in the form of digital photography, led to the decline of traditional film. Kodak's failure to anticipate and adapt to this innovation was a key factor in their eventual bankruptcy.

💡Smartphones

Smartphones are mobile phones with advanced computing capabilities, often including features like cameras and internet access. The script highlights the rise of smartphones as a disruptive technology that revolutionized photography, further accelerating the decline of traditional film and contributing to Kodak's challenges in adapting to the digital market.

💡Organizational Flexibility

Organizational flexibility refers to a company's ability to adapt and respond to changes in its environment. The video suggests that Kodak's structure was not agile enough to adapt quickly to the shift to digital photography. This lack of flexibility hindered their ability to innovate and compete effectively in the changing market.

💡Resistance to Change

Resistance to change is a psychological and organizational phenomenon where individuals or groups resist modifications to their current environment. In the video, Kodak's senior executives were deeply invested in the film business, creating a barrier to embracing digital technology. This resistance impeded the company's ability to adapt and innovate.

💡Bankruptcy

Bankruptcy is a legal status where a person or company is unable to repay their outstanding debts. The video concludes with Kodak filing for bankruptcy in 2012, marking a significant failure for a former industry leader. This outcome underscores the consequences of failing to adapt to market changes and technological advancements.

💡Market Changes

Market changes refer to shifts in consumer preferences, technology, competition, or other factors that affect the business environment. The video emphasizes the importance of adapting quickly to market changes, as Kodak's delay in responding to the shift from film to digital photography allowed competitors to capture market share and ultimately led to their downfall.

Highlights

Kodak was once the dominant player in the film and photography market.

Digital technology emerged, posing a challenge to Kodak's traditional business.

Kodak invented the first digital camera in 1975 but struggled to adapt to the digital era.

Kodak's feasibility study recognized the rise of digital photography but underestimated the speed of consumer adoption.

The company maintained significant investment in film, delaying full commitment to digital.

Kodak's market analysis was overly optimistic about film demand.

Kodak hesitated to embrace digital technology due to concerns about cannibalizing their film business.

Competitors like Canon and Sony advanced in the digital camera market while Kodak hesitated.

Kodak's feasibility study projected a gradual decline in film sales, which did not materialize as expected.

The company continued to invest heavily in traditional film, draining resources from digital strategy development.

Internal resistance to change and a lack of agility in Kodak's structure hindered adaptation to digital technology.

Kodak's decision-making processes were slow and cumbersome, impeding quick adaptation.

The rise of smartphones revolutionized photography, a risk underestimated by Kodak.

Kodak's inability to pivot effectively led to a loss of market edge in the digital market.

Kodak filed for bankruptcy in 2012, marking a significant failure for a former industry leader.

Key lessons include the need to adapt quickly to market changes and avoid overreliance on existing revenue streams.

Organizational flexibility is crucial for companies to adapt to technological advancements.

Continuously updating feasibility studies is necessary as markets and technologies change rapidly.

Companies must consider unforeseen risks and the impact of disruptive technologies.

Established companies can fail if they do not anticipate market changes and adapt to technological advancements.