Managing the Disruptive and Sustaining the Disrupted: The Case of Kodak and Fujifilm in the Face of Digital Disruption

Valuable lessons can be learned from the comparison between Kodak and Fujifilm in terms of how the two companies confronted the digital disruption, with one failing and the other thriving. Through a series of theoretical propositions rooted in literature and tested with case studies on Kodak and Fujifilm, this article suggests a systematic way for incumbent firms to navigate technological disruptions. A disruptive technological change does not necessarily render all technological competences embedded in the firm's products obsolete. Further, a competence disrupted in the home market does not have to be abandoned. By analyzing a firm's technological system and closely studying its innovation capability, an incumbent can nurture certain technological competences and diversify into new fields where such competences are valued and can distinguish the firm from its competitors. The challenge lies in a timely redefining of the firm's core business and restructuring the organization to ensure consistent execution of the strategies.