Well, I'll tell you exactly why they failed.
My father worked there all through the 90's and I worked there for a few years in the early 2000's so I got the inside scoop for you right here.
First you have to understand WHAT Kodak is.
Eastman Kodak, in the 1990's, consisted of several plants around the country and some overseas. The biggest plant was located in Rochester NY and dubbed "Kodak Park". Kodak Park was shaped like an L, 7 miles lone one way, 3 miles long the other way. The oldest building in the palrk was built by founder George Eastman in 1888 and the rest of the park grew up around it.
Kodak Park was a chemical plant from the start. It's products were film (cellophane coated with a chemical emulsion) and paper. The Park was built to facilitate the efficient production of these products and featured over 600 buildings housing 100 year old well maintained steam driven machines, steam producing plants and steam handling systems, mostly located underground. As a chemical plant in the 1800's, before laws and popular opinion drew a moral line in the dirt against polluting, Kodak dumped massive amounts of waste for decades and is still to this day responsible for paying fines to teh state for this pollution - which is still leeching into the Genesee river and lake Ontario.
It's within this context that George Fisher came on the scene. He was Kodak's first ever CEO hired from outside the company. The day he started he made a speech in which he stated "digital will never surpass film". The thinking at the time was that film has resolution based on molecules, digital based on mechanical sensors. Besides consumer cameras and film, Kodak was the main producer of many kinds of movie film and the government's proprietary (and secret) high speed and high resolution films. They had a lock on a market that was going nowhere. So while, yes, Fisher did make a feeble effort to lead in digital cameras and digital hosting and sharing as well as online digital photo processing-by-mail, he also amped up film to make sure it wasn't overtaken anytime soon by advances in digital imaging.
But the company's bread and butter was paper and film - consumables. There simply was no way for a company built on selling consumables to transition to selling quality irreplaceable products. They created digital cameras that were trash, making no effort whatsoever to compete with Canon or other camera manufacturers -- who still relied on Kodak to fill their pro quality cameras with pro quality film -- but rather to compete only with their own low quality film cameras by selling cheap gimmicky digital camera systems that broke easily.
It wasn't long before consumers started buying moderately priced quality digital cameras and then using their phones to capture images. There was no longer any kind of market at all for disposable film, paper, or cameras. Kodak, it turns out, was a flash in the pan, a relic of the 1900's having no other place in history.