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Competition was increasing in all areas and Kodak was gradually losing its market share and facing threats to its profitability.
Customers
Kodak's customers want a quality and affordable product. Several of their customers are willing to pay extra money for superior value that they receive with Kodak's product compared to a competitor's product. Kodak's competitors (Fuji) were creating products of equal quality with more vivid colors and selling them at a lesser price, causing the customers to make their purchases from other reputable companies.
Employees
Kodak did not give managers an equity stake in the new ventures, therefore they felt that they had no stake in the ventures' success, and did not work hard at attaining success for the company because of this...
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