Kodak's bankruptcy explained by Porter's Five Forces

The following article show a great example of the how the Market forces outlined in the Porter's Five Forces Model can push a company of the playing field:


http://finance.yahoo.com/news/kodak-bankruptcy-dims-once-bright-025841813.html

Here's my analysis of the article:
Kodak was once a strong and thriving business.  As of this week, it has filed for bankruptcy!  So, how did this happen?  Well, if we take the situation and explain the events leading up to Kodak's demise with the Five Forces Model, we can understand how an industry giant can be brought to it's knees by a rapidly changing market.

As the article states, Kodak invented the handheld camera.  In other words, they created the Market for handheld photography.  Kodak remained the market leader until the late 1990's, when digital technology became a legitimate Threat as a Substitute Product.  Since Kodak acts a supplier to motion picture studios and other photographers, they began to lose bargaining power as a supplier because their customers had more options to suit their needs and gradually became less dependent on film.  


Chris McGurk said, "Kodak failed to recognize the game-changing impact the digital technology would have on the film-making business.  Those who didn't see it have fallen by the wayside.


The industry began to change and there began to be great competition within the industry, from companies with superior technology, like Canon and Olympus.  Along with an increase in competition  and new entrants came an increase in the bargaining power of consumers.  Consumers had more choices, better products, and lower prices thank to this competition.  The competitors who got on board with digital technology and led the market were able to push Kodak out of the market as industry leader and take over the market.  Essentially, everyone won except for Kodak because they failed to implement an effective strategy for a changing market.