The problem was that Kodak essentially was a film chemical production company pretending to be an imaging company. The switch to digital meant they could no longer get the fat recurring profits from selling film that they were used to. Kodak's value peaked at $31 billion in 1996 ($58 billion in 2025 dollars) while the total value of the digital camera industry today is around $8 billion (https://www.researchandmarkets.com/report/digital-camera). Even if Kodak had pulled off a masterful pivot to digital and captured the entire market, it would have been disastrous for the company and led to it shedding most of its employees.