There's a popular perspective that companies are better off always taking drastic action even if it will probably lead to going down in flames rather than milking a business through an inevitable decline. And that's not always the case.
It's of course natural and sensible for companies to pursue strategies for new products and product lines as existing ones mature and decline. But if doing so means investing in new businesses where you have no particular expertise or advantage, it's unclear if you're benefiting your owners (i.e. shareholders) by doing so.
There's plenty to criticize Kodak about. But it was going to be in a very tough position no matter what. And we can name plenty of other businesses that have been completely replaced by new unrelated technologies. Keuffel and Esser wasn't going to become a calculator company.
It's of course natural and sensible for companies to pursue strategies for new products and product lines as existing ones mature and decline. But if doing so means investing in new businesses where you have no particular expertise or advantage, it's unclear if you're benefiting your owners (i.e. shareholders) by doing so.
There's plenty to criticize Kodak about. But it was going to be in a very tough position no matter what. And we can name plenty of other businesses that have been completely replaced by new unrelated technologies. Keuffel and Esser wasn't going to become a calculator company.