Growth and Underinvestment System Archetype
Instructions for the Kodak Case Study
Kodak is a company that was broadsided by a phenomenon called disruptiveinnovation. Prepare a case study using the Growth and Underinvest mentarchetype to explain why Kodak lost its competitive edge in the photographymarket even though they invented the digital camera.
Carefully read the Kodak Background Information Sheet and watch the YouTube videos to gain an understanding of the Kodak case
Frame the details of your Kodak story by following the steps below:
1. Explain the problem you are investigating.
2. Identify and explain each key systemic variable.
3. State the relevant time horizon in the case
Graphically sketch the historical behavior of each key systemicvariable relative to one another.
Explain the governing mental models that were active during thetime period under consideration.
Construct a Growth and Underinvestment causal loop diagram thatdepicts your assessment of the problem Kodak experienced. Be sure toinclude delay symbols in your diagram where appropriate. (Please see detail in red) 1. Label the causal loop links. (“S” or “O”)2. Identify each loop as either “balancing” or “reinforcing” 3. Be sure to name your loops to indicate what part of the Kodak storythey represent. 4. Explain the systemic behavior of each link in your causal loopdiagram using causal language (for example, as “A” increases, “B”decreases) 5. Carefully explain the operation of your causal loops relative to oneanother. D. Discuss the organizational learning disabilities that Kodak exhibited in thiscase.Growth and Uderinvestment template. Please watch the video for detail
Kodak case: Growth and underinvestment system archetype
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B. Frame the details of your Kodak story by following the steps below:
1. Explain the problem you are investigating.
This is a look into the growth and decline of Kodak as the company lost its dominant position in photographic film sector and sales dwindled. Despite Kodak being the major player in the photographic film industry, the company lost its market share as digital photography started being more popular. However, instead of the company adapting to the emerging threat digital technology it was slow to adapt and this increased customer dissatisfaction. The management was preoccupied with the sales, profits and maintaining a market share. As such, Kodak failed to adapt to the digital world and had to grapple with technological discontinuities. Kodak’s analogue film photography would then prove to be Kodak’s downfall as digital film photography became more popular, while the delay in entering the digital market impacted negatively on Kodak’s performance.
2. Identify and explain each key systemic variable.
Analogue Film technology- this is the reinforcing loop that drove growth and performance for the company.
Disruptive technology- the digital technology was new and this is the balancing loop that opposed the continued growth of analogue film technology.
Digital expansion- this is the second balancing loop linking delayed entry into the digital market and investment in digital capacity.
Investment in film technology- this is the growing action in the system as Kodak seeks to maintain its position in film technology.
Sales- this is the demand for the film technology products as investments increase, there are increasing sales growth.
New digital products- this reflects Kodak’s digital capacity as consumers increasingly chose digital products over analogue products
3. State the relevant time horizon in the case.
The relevant time zone is 30 years focusing on the post-1980 period when new technologies started to emerge. The delayed entry into the digital world meant that Kodak’s digital capacity was delayed.
4. Graphically sketch the historical behavior of each key systemic variable relative...
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