Adapt or Perish: Lessons from Eastman Kodak for Franchise Companies

Adapt or Perish: Lessons from Eastman Kodak for Franchise Companies

It was a time when the markets were changing, and the Eastman Kodak Company was struggling to remain competitive. The world around them was shifting, and Kodak was unable to keep up. In the past, Eastman Kodak faced the challenge of competing with the rapidly evolving digital photography industry. As digital photography became more popular, Kodak’s traditional film-based photography products became obsolete. While the technology was available, Kodak was late to adopt, and rivals like Fuji and Canon were able to overtake them in the marketplace. This led to a steep decline in Kodak’s market share and revenue, and eventually resulted in the company filing for bankruptcy in 2012.

This story is a cautionary tale, and the legacy of Eastman Kodak serves as a reminder that, in business, complacency is not an option. Companies must stay ahead of the curve and innovate, or risk being left behind. For many years, Eastman Kodak prospered, leading the market in photography and film production. But as the world changed, Kodak failed to keep up with the times.

The same type of problem can be seen in the franchise industry, where companies must be able to respond quickly to changes in consumer demand, regulations, and technology. Companies must also be able to identify, attract, and retain the best franchisees if they are to succeed. Unfortunately, many companies are unable to keep up with the competition, and as a result, they can struggle to attract new franchisees and retain existing ones.

Businesses must be willing to innovate and adapt if they want to remain competitive. They must recognize changing consumer preferences and develop products and services that meet those needs. Investing in the latest technology and staying ahead of their competition is also key. Franchises must also be willing to embrace new business models and explore new revenue streams, such as offering digital products or services, such as web-based training programs or digital marketing campaigns. However, this may seem like a daunting task.

A successful franchise must also be willing to adjust its business model to remain competitive. This could involve adjusting the pricing structure, revamping marketing strategies, or introducing innovative new products and services. To remain competitive and successful, businesses must be agile and able to quickly adapt to changing trends. They must be willing to innovate and adjust their business models to meet changing trends in order to remain competitive.

Finally, businesses must be willing to take risks and experiment with innovative ideas. This can involve trying something that has never been done before, or simply finding a different approach to an existing problem. Taking calculated risks can be a great way to stay ahead and differentiate a franchise from its competitors. A willingness to take risks and try innovative ideas is essential for any business to remain competitive and successful in today's market.

The National Franchise Alliance (NFA) was created to help franchisors, businesses, suppliers, and advisors better understand the business of franchising and make the industry more successful and competitive. NFA provides a range of services, from business and franchise consulting to technology and marketing support, to help franchises navigate the challenges of today's markets and take advantage of new opportunities. Working together, NFA and its partners can help ensure that franchises remain competitive and successful in the ever-changing marketplace.

In conclusion, the National Franchise Alliance is committed to helping franchises become more competitive and successful in the ever-changing marketplace. Through its network and resources, NFA is able to provide guidance and assistance to help franchises better understand the business of franchising and make the industry more successful and competitive. By collaborating and sharing ideas, NFA and its partners can help create a more successful franchise industry that is better equipped to meet the demands of the future.

Sincerely,

Michael G. Bullinger, MBA, CFC, CFA

President of National Franchise Alliance, LLC

5 Challenges Facing Franchisors in 2023

Before we discuss the 5 Challenges, according to the 2022 Franchising Economic Outlook published by the International Franchise Association (IFA)…

Advantages of Buying A Franchise vs Startup

Starting a business is an exciting and rewarding experience, but it can also be quite challenging. When it comes to…

Forge a New Path in the Franchise Market: Innovative Solutions for Lead Generation

Article