Marketing myopia is when a company defines its business purpose incorrectly leading to non-growth or being overtaken by other organizations (Levitt 139). The railroad industry, for example, suffered lack of growth because it failed to define its business correctly. Other than viewing itself as part of the larger transportation industry, the railroad industry considered itself a railway business (Levitt 138). Consequently, road and air overtook it in the transportation industry. In light of this example, therefore, marketing myopia occurs when a company loses touch with its customers. For instance, instead of focusing on customer needs, which are always changing, a company would continue to offer what it incorrectly believes is appropriate…show more content… This cycle, as Levitt defined, has four characteristics, which companies exhibit in their way to downfall. First, a company assumes that a growing and affluent population guarantees its growth (Levitt 140). Second, an organization might believe that the industry lacks more competitive products for its main product/service (Levitt 140). Kodak, for example, did not perceive the competition from other camera companies as a huge threat. Third, a business would experience marketing myopia if it heavily relies on mass production and the benefits of reduced cost of production as output increases (Levitt 141). Fourth, focusing on a product prone to manufacturing cost reduction, scientific experiment, and improvement can make a company undergo marketing myopia (Levitt 141). In the case of Kodak, the company was preoccupied with its cameras ignoring the wave of digital technology. Instead of embracing new approaches and customer needs, the company focused on a product that was subject to improvement due to technological changes (Adner). As a result, companies like Sony, with their strategies to address digital era needs including developing digital cameras that capture moments and tell stories, overtook Kodak in its slow strides towards the digital wants of the modern…show more content… It reduced the scope of the industry and lead to stagnation of the product which had tremendous potential.
A company that experiences this mishap is likely not to grow, while other innovative and customer-centric organizations continue to grow. While companies like Sony experience growth due to their embracing of digital technology to meet the needs of modern customers, Kodak has declined. Levitt further argues that in some occasions, a company would be forced to wrap up its business if other organizations overtake it. Although marketing myopia is an unfortunate management misdoing, a company can take measures to overcome it. Kodak, in this case, should adopt a customer-centered approach rather than a product-oriented one, broaden its vision from a product level to an industry