The paper “ Innovators' Dilemma in Dell and Kodak Companies” is an inspiring variant of case study on management. Innovators dilemma according to Govindarajan (2016 pg 23) refers to situations when the new technologies cause the well-established firms to fail. This refers to the illustrations on how successful and outstanding firms do everything right but lose their market share and prowess to upcoming firms. Innovators dilemma in the case of Kodak company as discussed by Schwerte et al (2016 pg 11) is a situation whereby despite market leadership in the film industry by the company a slight change in the photography from being based on chemistry to being based on bits let to the crush of the company that once enjoyed lucrative film products.
The change in the technologies as argued by Bessant (2016 pg50) has led to the fall of the giant company and the company has reduced on its workforce. Govindarajan (2016 pg 34) further purports that innovators' dilemma can be seen to take the form of big companies failing to make market transitions to redefine their markets as new technologies emerge.
Also in the case study innovators dilemma can be related to the case of Kodak company where the previous films employed the use of cheap technologies which resulted to only black and white films, their cameras portrayed low quality and could only store a few images at a slow rate, the cameras were bulky and had a poor battery life as shown by Ali (2016 pg 33). The dilemma comes in since the customers were well suited to this incumbent technology by the firm to levels that the firm ignored to venture into digital photography.
Then came new technology in the film industry with a shift from analog to digital and today the film products offered by Kodak as argued by Pandit et al (2016 pg 21) are facing disruptive technology impacts, the digital cameras have wiped out the use of films which has led to Kodak recording low sales on the film product as also agreed by Shih (2016 pg 13). The innovator's dilemma according to Ritala & Aarikka (2016 pg 31) is also a situation where the market is faced by disruptive technologies that threaten the incumbent technologies.
Despite the incumbent technologies having a large customer base, over time the disruptive technology overtakes the market with a myriad innovation leading to the irrelevance and less value by the incumbent technology which has been the cause of the fall of Kodak company. Question 2As discussed in the case study big firms fail as a result of innovators' dilemma which is a failure to see the disruptive innovations as a threat to their businesses but rather do what the company management strategizes through policies as shown by Ghaffari et al (2016 pg 94).
The big firms tend to listen to the current customers and implement the customer’ s feedback into procedures and practices. Because the incumbent technologies offer the customers values and are attractive the current firm’ s customers do not want the firms to invest in the disruptive technologies because the technologies come with poor performance and the disruptive technologies have poor margins as compared to the dominant incumbent offerings as purported by O’ Reilly & Tushman (2016 pg 26-28). The big companies fail to explore the new markets and do not dedicate the resources to develop the potential technologies in nurturing the needs of the new customer base.
The failure to focus on future customer needs and a keen emphasis on the needs of the current customers can, therefore, be argued as the main reason why the big firm has collapsed while others have registered massive losses as supported by Birkinshaw & Haas (2016 pg 76).