I don't know that they really fumbled anything. They had a pretty good set of digital cameras in the early 2000s. I owned one.
It's just the technology that was the underpinning of the entire company has outlived its usefulness. You don't see many companies making horseshoes today - but there were thousands 150 years ago. They didn't fumble anything - just no longer needed.
I agree with this, but as someone who occasionally shoots film I'm still very sad about it. There's still reasonable demand for film, I can walk into my local Target and pick up Fujifilm Fujicolor Superia 200 for $10 a roll. It's just really hard to scale down a business without imploding, but I firmly believe Kodak could have had a future as a boutique film supplier if they wanted to. It just wouldn't be super profitable.
Fuji has a pretty nice camera business today after not being a particularly notable player in film SLRs - or even digital SLRs before mirrorless ILCs (contrast with Olympus here, who whiffed starting with the transition to autofocus).
That'd still be a big change of course, but it's better than not being a player.
Or they could've been Sony, who's now both a major player in cameras and supplying sensors to tons of other cameras.
