Ken Uchikura Newsletter Vol. 411 Why Kodak and Fujifilm Took Different Paths
2026-10-14
Ken Uchikura Newsletter Vol. 411 Thumbnail
There was a time when two giants dominated the world of photographic film: Kodak in the United States and Fujifilm in Japan.
But with the arrival of digital cameras and the widespread adoption of smartphones, the once-massive market for photographic film rapidly declined.
Both companies faced the same crisis, yet the paths they took afterward were very different.
People often say that Kodak failed because it was too slow to embrace digital technology. But the reality is that Kodak had been researching digital technology from an early stage. The company also entered the digital camera market.
So what made the difference?
I believe one of the key differences was how each company defined itself.
Kodak's business was about much more than selling cameras.
It sold cameras, sold film, developed photographs, and printed pictures.
It was an incredibly successful business model. The more pictures people took, the more revenue Kodak generated.
But digital cameras eliminated the need for film. And with the rise of smartphones, people no longer even needed to print their photos.
Kodak developed new products, including digital cameras, printers, and photo kiosks. However, many of these efforts seemed to remain tied to the question, "How can we continue our photography business in the digital age?"
Fujifilm, on the other hand, took a different approach.
Instead of simply asking:
"What can we sell to replace photographic film?"
The company asked a more fundamental question:
"What capabilities have we developed through decades of making photographic film?"
Producing photographic film requires highly advanced technologies, including precision chemistry, thin-film coating, nanotechnology, optics, oxidation prevention, and collagen-related expertise.
Fujifilm took these technologies and applied them to markets beyond photography.
Medical equipment, endoscopes, pharmaceuticals, advanced materials, and cosmetics.
In other words, rather than holding on to photographic film as a product, Fujifilm found ways to apply the technologies and expertise it had accumulated over many years to entirely different markets.
Of course, the reality of running a business is never quite this simple. Kodak also attempted to enter new industries and invested heavily in digital technology.
Still, I believe there is an important lesson we can learn from the history of these two companies.
We should never define our companies solely by the products or services we currently sell.
For example, consider a web hosting company.
One way to define the business is:
"We are a company that sells web hosting services."
But another way to think about it is:
"We are a company capable of operating internet infrastructure and developing software for businesses."
The difference may seem small, but over the next 10 or 20 years, it could lead to very different outcomes.
Every product has a life cycle. No market lasts forever.
That is why I believe business owners need to ask themselves an important question from time to time.
Not:
"What do we sell?"
But rather:
"What are we capable of doing?"
The different paths taken by Kodak and Fujifilm offer an important lesson for every business navigating a world of constant change.
Disclaimer: I use AI as a tool to help create images and proofread my writing. However, the ideas, opinions, experiences, and messages in my posts are my own. AI does not generate my posts for me. It simply helps me present my own words and ideas more clearly.
Kenichi Uchikura
Founder & CEO
Pacific Software Publishing, Inc. (PSPINC)
Uchikura & Co., LLC.
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ABOUT THIS BLOG
I was born and raised in Japan and have spent most of my adult life in the United States. Through this blog, I share Japanese culture, language, expressions, and wisdom. My goal is not to say one culture is better, but to explore different perspectives and what we can learn from them.
Your comments are always welcome.
..-･**･-....-･･-..__..-･･-....-･**･-..
Kenichi Uchikura
Founder & CEO
Pacific Software Publishing, Inc. (PSPINC)
Uchikura & Co., LLC.
..-･**･-....-･･-..__..-･･-....-･**･-..
ABOUT THIS BLOG
I was born and raised in Japan and have spent most of my adult life in the United States. Through this blog, I share Japanese culture, language, expressions, and wisdom. My goal is not to say one culture is better, but to explore different perspectives and what we can learn from them.
Your comments are always welcome.
..-･**･-....-･･-..__..-･･-....-･**･-..