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Transcription of this question: 5.KodakKodak, after decades as the leading American camera and photography company, went bankruptin 2012. Despite its large research and development (R&D) budget, Kodak concentrated on productsrelated to its film-processing business, a market that Kodak had long dominated. However, digitaltechnology had changed photography dramatically, and Kodak, unlike its competitors, failed toinnovate.At least three times, Kodak misunderstood consumer desire to interact with photos and the externalenvironment:• Digital cameras — In 1975, Kodak invented the first digital camera but did not sufficiently developthis technology. Its cameras were always perceived as satisfactory products, but “nothing special”Competitors innovated with features such as face-and-smile detection. Vwdak only followedtrends, never led them.• Photo viewing — In 2002, Kodak entered the market of low growth, small margin products, suchas digital photo frames. KodakS products did not have a unique selling point (USP) and wereunsuccessful.• Photo sharing — In 2005, Kodak developed the first WiFi camera, but sales were disappointing.Shortly thereafter, a new business opened, Eye-Fi, which proved Kodak wrong about WiFi.Eye-Fi created a successful business based on WiFi memory cards for cameras — the concept thatKodak had abandoned and not patented.The conclusions from Kodak S bankruptcy are clear:• “Cannibalism” — do not be afraid to develop a new technologically advanced product even if itcauses the decline Of your existing products.• Innovation — do not be afraid to take risks. KodakS inability to give any Of its digital products aUSP shows its failure to take advantage of inventions. Innovation also requires strategic vision.• New product design — do not be afraid if sales do not happen immediately. Kodak withdrew itsWiFi cameras simply because the first model sold poorly.As the evidence shows, not taking risks in new inventions will reduce profit margins in thelong run. Small, innovative business start-ups such as Canon can Often successfully penetrate marketsdominated by big companies unless those companies use their resources to keep up-to-date.[Source C International Baccalaureate Organintion 2014](Question 5 continued)(a)(b)(c)(d)(e)Define the term patent.Describe one problem faced by a new business start-up.Explain the role and importance Of research and development (R&D) for KodakUsing the Boston consulting group (BCG) matrix, examine thereasons forKodak bankruptcy.With reference to Kodak and one Other organization Of your choice, evaluate themerits Of small versus large organizations.[2 marks][2 marks][6 marks][6 marks][9 marks]

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