The traditional photography industry was structured around the market leader producing cameras and selling them at a low cost (the razor-blade model), and making its profit in the sale of film and supplies needed to develop and print pictures. Kodak was long the market leader (until Fuji arrived) and was able to pour its profits into R & D which insured its dominance of the industry. Competitors were hesitant to compete with such a successful, market dominating firm.
Kodak’s response to Sony’s introduction of the Mavica was the figurative, if not literal, end for the company. It certainly was for film. Kodak CEO Colby Chandlers’’ contention that “people liked color prints” and Kodak could introduce its own digital camera failed to consider what the product meant to the future of the industry and of Kodak. His contention that Kodak could introduce its own digital camera was a nice idea, but did Kodak rapidly move to do so? It did not, as the firms culture was so tied to film.