Polaroid - Kodak Case Study

Question 1

Polaroid
First inventions

Answer 1

Instant Photography was first major invention

• Didn’t think it was any good b/c photochemistry didn’t work, optics were fine, but then allowed for quick development

By 1960, got color within minutes

Then put 500mil in new camera which was revolutionary

Polaroid won the infringement suit ($925mil in damages)

Question 2

Kodak

Entering the market

Answer 2

• Said Polaroid was ridiculous and no legit photographer would buy it
• Dominated amateur photography
• When they heard about color photography from Polaroid, came out with Instamatic camera
  
  • Advertising gimmick
  • There were things about it that were instant like the shifting of the bulb, but could not produce a picture in a minute
• Film was much better than Polaroid’s
• 1970’s: turned their eyes to the market for color cameras
  
  • Instant camera in 1970s and made a plant to produce them
• Largest infringement case in history
  
  • 11 patents to do with chemistry of the design
  • Lost 1.9 bil in selling the plant
  • Paid 500mil to buy cameras back
  • $100mil in legal fees between the two
  • $3bil net cost in entire suit

Question 3

The market

Answer 3

By the 1990s other companies working on pixels for intensities, electrical to digital

Pixels crazy small now because semiconductors have shrunk