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The case of Kodak is interesting. It was a phenomenally profitable firm, and yet it was not shaped by profit. Kodak's business model was supply-driven, and the firm could have been extraordinarily profitable if it had changed its business model to the sharing economy. The firm's inability to change direction was the result of the profits that the firm's previous business model enabled it to maintain.
The question of whether Kodak should have maintained its business model is not a technical one about business models, but a socio-technical one. Kodak's inability to change direction was the result of the profits that the firm's previous business model enabled it to maintain. The change required a cultural shift that only occurred over the course of a decade. There is a lesson here.
The case of Kodacell is interesting. It is a contemporary version of Kodak and the firm's inability to change direction is the result of the profits that the firm's previous business model enabled it to maintain. The firm is valued at a 40x multiple of annual profits. It is owned by private equity and it has been unable to monetise its IP.
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