In the annals of business blunders, few stories rival Kodak's: a once-unrivaled titan of photography that crumbled into bankruptcy in 2012, all because its leaders turned a deaf ear to the very innovators who could have saved it. Founded in 1888 by George Eastman, Eastman Kodak Company revolutionized the world with affordable cameras and film, coining the phrase "Kodak moment" for those irreplaceable snapshots of joy. By the mid-20th century, it commanded 90% of the U.S. film market and a $31 billion valuation, employing over 145,000 people at its peak.

The seeds of destruction were sown in 1975, when Kodak engineer Steven Sasson—a brilliant young inventor fresh out of Rensselaer Polytechnic Institute—invented the world's first digital camera. This clunky, battery-powered prototype captured grayscale images on a cassette tape, weighing eight pounds and taking 23 seconds to snap a photo. Sasson's creation wasn't just a gadget; it was a glimpse into a future where film would fade away. But when he eagerly presented it to Kodak's top brass, their response was a masterclass in shortsighted arrogance: "We don't need this. It doesn't fit our business model." They ordered him to keep it under wraps, fearing it would cannibalize their lucrative film sales.

This wasn't mere oversight; it was a deliberate choice rooted in fear and complacency. Kodak's executives, basking in analog glory, dismissed digital as a novelty. They poured billions into film R&D and acquisitions, while rivals like Canon and Nikon raced ahead with digital tech. Sasson later reflected in interviews: "They saw it as a threat, not an opportunity." Meanwhile, Kodak dabbled superficially—launching digital cameras in the 1990s but pricing them to protect film profits, not to dominate the market. By 2000, digital sales were surging, but Kodak's market share plummeted from 85% to under 10% in consumer cameras.

The fallout was catastrophic. In 2012, with $6.8 billion in debts against $5.1 billion in assets, Kodak filed for Chapter 11 bankruptcy, shedding 47,000 jobs and closing 13 factories.

The company that once defined memories became a cautionary tale of hubris. Emerging from bankruptcy in 2013, Kodak pivoted to printing and niche films, but the damage was done—its stock, once a blue-chip staple, never recovered its luster.