Kodak's problem was their leadership and refusal to change with the times along with a few of the other things that a few posters mentioned. They did not have any idea what to do with their digital products being printer, cameras etc. Pricing structure was off, forecasting and manufacturing of digital products policies/procedures were from the stone age.
That is why Kodak no longer has a digital products division. They are sticking with their paper products, grande printers and chemical divisions to stay alive. They sold off tons of their patents, licensed out the Kodak name, etc., etc., etc. There is still a company that manufacturers a few of the Kodak spec'd digital cameras and you can still buy them cheap on the web.
Very sad loss and it could have been avoided with some foresight or if they asked for help or a partner sooner. I fear the same will happen with FUJI and Olympus soon as their digital point and shoot camera divisions are typically money losers that are only kept around to get the corporate name out there and in consumers hands.