The market is a volatile force, changing directions quickly and destroying those not quick enough to adapt or withstand the pressure. As seen in the Wall Streets Journal’s description of the once market leader in photography, Kodak, the market changes rapidly due to factors such as technology. The failure to evolve through diversification of product range, investment in innovative ideas, etc can have detrimental on the survival of a business. The Economist compares the Kodak moment to the introduction of E-cigaretttes in the tobacco industry.
Tobacco firms are in competition to a new substitute, which poses a large threat with over 7m people estimated to be using e-cigarettes in Europe alone. The key mistakes of Kodak can be compared to the E-cigarette epidemic in the tobacco industry.
- Recognise the change in the industry and the potential obsoleting of non e-cigarette products.
- Innovate to remain current and appealing to consumers such as through branding.
- Change with the market, refrain from prolonging life of existing product lines.
- Design strategy based on the consumers changing demands.
These articles demonstrate the power of the monster of volatility in every industry in the marketplace and that the challenges faced in each can be similar.