Cause and Effect

Few days ago,i had a gathering with my friends, we all have a common interest which is photography.
Besides, we are still using film and digital single lens reflex (DSLR).

For film user, the current hot topic is the fall of once the big photography giant -- Kodak.
We all talked about the bankruptcy filed by Kodak, and what seemed to be the cause and effect.
Everyone knows that Kodak is specialized in  producing films, but not many know that it produces good quality camera and lenses too! At least for Malaysians, we are not really aware of it because we simply use more Japanese cameras.

Anyway, we've mentioned that films are now going to be obsolete as digital cameras are getting more and more famous, and the price is very affordable. Due to this, someone jump into conclusion that, the reason for Kodak to fall, is because the shift from analogue medium to digital medium.

Cause and effect statement : Because digital medium is getting famous, so film companies are no longer famous.
Analogy : Kodak produces film, so Kodak bankrupt because films are no longer famous.

The cause and effect argument, is however invalid, and is considered as "Post hoc fallacy"

Why is it a pos hoc fallacy? Because the cause does preceded the effect, but that does not mean that the even alone establishes a causal relationship.

Facts :
1. Up til to-date, film industry, including Kodak, is generating profit; It's slowing down, but it's still making profit. In fact, Kodak clearly stated that due to the bankruptcy, it closes some line of business, but the film units are to be remained.
2. Kodak reported major losses on R&D. They've researched very good digital cameras, but the sales are not able to recover the costs.
3. Kodak losses money on wrong investment as well, eg: Printing industry -- one of the industry that produces high grade photographic paper for poster, banner, photos etc. People these days just don't use these as much as before, digital media is much more efficient due to its ability to circulate around the world swiftly.