Comment: Classic disruptive techonology problem (Score 5, Insightful) 309
Even though Kodak saw digital photography coming, the problem was Kodak's whole financial structure was tied to film, and digital technology was disruptive technology. They might have been able to sustain the brand by merging with or buying the right company at the right time (e.g. Canon), but most companies have a hard time dealing with technology shifts that vaporize their main profit center. It's not as simple as just knowing what the next trend is; it's figuring out how to gracefully wind down the existing cash cow while giving the new technology the management attention and resources it needs to thrive. Even then, there still ends up being a lot of pain because you can just put all of the same people you had producing film to work in a digital camera business.