Kodak Eastman Kodak: What Factors Term Paper

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Investing in new research and development and trying to outshine Fuji should have been the main objective. This could be accomplished through more R&D funds, more canny market assessment of consumer needs, and providing bonuses for innovation, not cutting back salaries and making staff member's dependant upon bonuses for their livelihood.

How does this example relate to the concept of economic Darwinism?

According to the theory of economic Darwinism: "behavior leading to the lowest payoff" leads to arbitrary behavior when a company attempts to replace that behavior with better policies (Sloth & Jacobson, 2006).

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In other words, when confronted with the reality that a previous strategy does not work, in this case the long release of new products in an increasingly competitive environment, companies have difficulty behaving rationally, even after they have realized what worked in the past no longer works in the reality of the current market environment. They try a series of new policies without really diagnosing the current market environment and determining why previous successful strategies are now faulty.

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