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Polaroid Can't Compete with Digital Cameras
mobydobius was among several who noted that poloroid can't keep up in the era of digital cameras. They filed for chapter 11, and have a billion dollars of debt. This deal gets them a bit of cash, but none of this seems surprising considering the cost of their instant film. In just a few short years, digital cameras knocked 'em down. There's a lesson here, but I think it's something like "Don't eat the Yellow Snow".
Polaroid made some of the best advances in providing instant photos, but that was back during their golden years. Digital cameras entered the market a few years ago, also providing instant photos, and Polaroid acted like they werent there.
Digital beat Polaroid in the fact that Polaroid's photos never really improved over the years. The cameras lacked good zoom lenses, quality never improved, lighting was an issue, each photo was an expensive $1/print, not to mention sheer size of the cameras meant it was tough to carry around.
Digital, OTOH, has zoom, high quality photos, adjusts for lighting problems, and have hardly any cost per photo.
IMO, Polaroid's downfall was their failure to further develop their camera to compete with the modern world. Their only major advancement was in providing fancy party borders to photos.
The One Rule Of Chess You'll Ever Need: Don't play someone who carries a kit in their bookbag.
They have always been a one-trick pony. Instant cameras and film were it for them, and everything else was just a little sideline.
Many moons ago Polaroid sued the pants off of Kodak for patent infringement, winning back exclusive rights to "instant" film and cameras as well as a good chunk of cash.
Their corporate culture didn't allow them to recognize that the "instant" film market, their baby, had reached the end of its lifespan.
Times had changed and Polaroid didn't change with them. They never gave more than a nod to anything other than their heritage.
Those who insist on living in the past have no place in the future.
Learning HOW to think is more important than learning WHAT to think.
Polaroid is really a victim of their own patents.
The cornerstone for Polaroid's business was their patents on instant film technology. No other company could compete in that market because of it. When Kodak attempted to enter the market in the 1970's, Poloroid stopped them, as they were violating their patents.
Because they had no competition, they didn't diversify. Actually they did, but it was too little, too late. Sure, they add low end 35mm cameras, 35mm film and digital cameras to their product line, but they couldn't establish a leadership role in any of these market segments. They still relied on their instant film business as a core.
New technology killed their own older, proprietory technology. Had they tried to embrace other technologies earlier (like been in the 35mm market about 10 years before) they might have build enough diversity on "open" technology to carry them through the predictable demise of their proprietory technology.
Polaroid should be a lesson for other technology companies: continue to innovate or else!
Polaroid did pioneer instant photography. Dr. Edwin Land had the 2nd largest number of patents assigned to him personally in the US. Polaroid was the prototypical high-tech startup that pioneered a new market. They *owned* the instant film market.
Ironically Polaroid also did much of the early work on digital photography and held a number of early patents. They could have rolled out digital cameras long ago but feared cannibalizing their existing markets. So they stayed with the tried-and-true and eventually became irrelevant.
Polaroid was also the classic engineering-run company. Never did market studies. Never did usability testing. Never attempted to create a design identity. If anything they were known for the incredibly clever & complex folding of their cameras (the awesome chemistry was hidden.)
They did try to branch out a bit. In the late 70's they introduced "Polavision", their instant movie system which bombed in a big way. In the recriminations Dr. Land "moved on" and Polaroid was left to continue the course he had left it on, never to really change significantly afterwards.
Oh, they came out with kiddie cameras and cheap cameras and cameras that printed to stickers. Some were decent successes but nothing really ground shaking. Other companies slowly but steadily took away their drivers-license photos and other markets with alternative technologies. For the past few years there've been promises of a new line in digital photography but many of the proposed products are dubious (dual instant-photo with a digital copy?) and all are vapor still.
Polaroid does have about 2 billion in assets - properties, patents, plants, contracts, etc. Their employees have all been aware of what has been happening and even in a company famous for dedication folks have been jumping ship for the past few years. The retirees are all up in arms and are likely screwed as their benefits are tied up in the company.
Lessons? Don't stop innovating. Don't define yourself as "The Something Company". Complete domination of your market is only important as long as your market is unique. Don't rely only on completely amazing technology to sell your product; you need to identify, listen-to & cultivate your customers.
I don't read ACs: If a post isn't worth so much as a nom de plume to its author then I wont bother either.
I don't know why I feel so indifferent about this. Maybe its because I have an Uncle who worked for Kodak (in Rochester NY). I remember when I was about age 11 or so, He was telling me how Kodak lost their battle in court to continue making their Instamatic (sp?) cameras. Polariod has a history of trying to edge out competition, just like any other corporation. If they can't keep up, hey, what goes around...
spam, spam, spam, spam, e-mail, news and spam.
No no no. Your first part is correct, but the second part is all wrong:
Me: TAKE A LOOK AT THESE SENATOR!
*Neema gently places digital camera on desk, so it doesn't break*
Senator: Yeah, my daughter has one of these.
<snip>
*Grabs camera, scrolls to incriminating pictures*
Me: THERE YOU ARE! YOU, DANCING THE FORBIDDEN DANCE WITH THE FORBIDDEN MONKEY!
Senator: That looks like something my daughter did with Photoshop.
Me: Yeah, well, I'm going to stop by staples to get glossy photo paper and I'll be printing out a bunch of these!
*Senator looks dubious*
Polaroid thought they were in the instant camera business, when they were really in the camera business.
Editor Emeritus and Senior Writer, TeleRead.org