HECTOR CASE STUDY
Hector is a once-iconic company that has fallen on hard times. The company, which was founded
in 1888, was once the leader in the photography industry. However, Hector failed to adapt to the
rise of digital photography, and it filed for bankruptcy protection in 2012.
In recent years, Hector has attempted to relaunch itself as a technology company. However, the
company's efforts have been largely unsuccessful.
History and Failures
Hector's success was due in part to its innovative products, such as the Brownie camera, which
was affordable and easy to use. Hector also benefited from its strong brand image and its
extensive distribution network.
However, Hector was slow to react to the threat of changing trends photography. The company's
management was hesitant to invest in digital technology, fearing that it would hurt its existing
business. As a result, Kodak fell behind its competitors in the development of digital cameras.
In the 1990s, the digital photography market began to grow rapidly. Hector eventually launched
its own digital cameras, but it was too late. The company had lost its market share to its
competitors, and it was struggling to keep up with the rapid pace of technological innovation.
In 2012, Hector filed for bankruptcy protection. The company emerged from bankruptcy in 2013,
but it has been unable to regain its former dominance in the photography industry. Today, Hector
is a small company that focuses on commercial printing and packaging solutions.
Reasons for Failure
1. Failed to reinvent itself
Companies often see the disruptive forces affecting their industry. They frequently divert sufficient
resources to participate in emerging markets. Their failure is usually an inability to truly embrace
the new business models the disruptive change opens up. Hector created a digital camera,
invested in the technology, and even understood that photos would be shared online. Where they
failed was in realizing that online photo sharing was the new business, not just a way to expand
the printing business.
2. Complacency
The organization overflowed with complacency which could be seen in the late 1980s. Hector was
failing to keep up even before the digital revolution when other companies started doing a better
job with the old technology, the roll-film business. With the complacency so rock-solid, and no
one at the top even devoting their priorities toward turning that problem into a huge urgency
around a huge opportunity, of course they went nowhere.
3. Lack of organizational agility
Hector’s lack of strategic creativity led it to misinterpret the very line of work and type of industry
that it was operating in which was later devastated with a fundamental shift towards the digital
age. Strategic problems were tackled through rigid means, and as mistakes in the manufacturing
process were costly, and profitability was high, Hector avoided risky decisions, and instead
developed procedures and policies to maintain the quo.
