The Role of Innovation in Kodak's Dowfall Research Paper

The Role of Innovation in Kodak's Dowfall - Research Paper Example From digital consumer electronics to household trinkets, everything can be sourced out from one part of the globe no matter how remote it may be. He also emphasized that introduction of different communication devices and platform that has increased the rate of information transfer. However, his comments about sustainability of a business in a globally competitive world is true. While consumers enjoy the benefits such as low prices and more options, local markets can also lose their business. Unemployment rises as downsizing occurs since global companies prefer outsourcing services due to a lower rate. Moreover, workers are not the only affected but big companies as well. Even big name companies like Eastman KODAK was not spared from the ugly head of globalization. Only this year, the Wall Street Journal announced the company’s filing or bankruptcy. It was a shock to the public considering that it has existed for 133 years. Yet, this is a glaring example that competitiveness i s the key to survival in a globalized economy. Hence, this paper will cite the main reasons behind the downfall of KODAK. Innovation is the main element for modern businesses to survive the rigors of globalization. The areas mainly responsible in an organization’s drive towards globalization would be marketing and management. Businesslink has stated in an article the necessity of innovation after creating a product or service. More so, when innovation is applied, it can help increase profitability because the value of products or services have increased. Consumers are always on the lookout for better products that go beyond their expectations. Apple is a market leader due to the ingenuity and creativity of its beloved founder- Steve Jobs. If a company fails to improve itself, it will bite the dust just as Kodak suffered. Management gurus like Peter Drucker is one of the most innovative minds despite his age. He has this uncanny sense of seeing how businesses should market the mselves in an evolving environment. In fact , he said that If an established organization , which in this age necessitates innovation, is not able to innovate, it faces decline and extinction. Drucker (qtd. in Trout, 2006) emphasized that Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business." Such words of truth should be the golden mean by companies today; moreover, Drucker emphasized the need to differentiate one’s products from the rest in order to survive the competition. Unfortunately, many businesses focus more on finances and operations and wonder later where they have failed. Although marketing does involve costs (along with innovation), it will be a constant source of revenue as long as the consumers are happy with the products. Innovation is oft en left behind because many managers are busy crunching numbers rather than developing ideas. Plus, innovation is often viewed by many business owners as costs, not as an investment. Innovation involves many creative processes that includes technology transformation as well as introduction of new strategies administered by the management (Shukla, 2009). Likewise, innovation, by itself, can be the main competitive feature of a company to rise