Polaroid built the perfect razor-and-blades machine. Then the blade went.
Polaroid bet on the SX-70 in 1972 to build an installed base that bought high-margin film. Revenue peaked at $3 billion in 1991. In 1998 net sales fell 14% on lower instant film sales, and in 2001 it filed for Chapter 11.
Transcript
A razor-and-blades model is only as strong as its blade. Polaroid built one of the best, around instant film.
In 1972, Polaroid launched the SX-70 camera. Edwin Land called it a half-billion-dollar investment. The logic: film was by far the most profitable part of the business.
Polaroid's stock fell roughly 90% between the 1972 launch and 1974.
But the installed base paid. Polaroid's revenue peaked at $3 billion in 1991.
In 1998, Polaroid's net sales fell 14% to $1.8 billion, driven by lower instant film sales. In October 2001, Polaroid filed for Chapter 11.
The record does not pin the fall on one cause. It shows the profit sat in film. If your margin lives in a consumable, watch whatever could make it unnecessary.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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