It’s crazy to think that 88% of the Fortune 500 firms that existed in 1955 are gone.
Most of these companies are unrecognizable, forgotten companies today.
The question is… which companies will recognize (and adapt to) transformative and disruptive moments, and which ones won’t? How relevant is your company today. How relevant is your competition?
WHY
Failure to innovate?
Natural lifecycle?
Retirement if leader?
Lack of customer focus?
Fear to change?
Here are some famous companies that failed to innovate, resulting in business failure.
BLOCKBUSTER (1985 – 2010)
Home movie and video game rental services giant, Blockbuster Video, was founded in 1985 and arguably one of the most iconic brands in the video rental space. At its peak in 2004, Blockbuster employed 84,300 people worldwide and had 9,094 stores. Unable to transition towards a digital model, Blockbuster filed for bankruptcy in 2010.
In 2000, Netflix approached Blockbuster with an offer to sell their company to Blockbuster for US$50 million. The Blockbuster CEO, was not interested in the offer because he thought it was a "very small niche business" and it was losing money at the time. As of July 2017, Netflix had 103.95 million subscribers worldwide and a revenue of US$8.8bn.
Why did Netflix succeed and Blockbuster fail?
2 things
- Customer experience
And
- Innovation
2. POLAROID (1937 – 2001)
In the 50s, 60s, and 70s, Polaroid was the coolest tech company on earth. Led by visionary founder Edwin Land, it grew from a 1937 garage startup into a billion-dollar phenomenon - no wonder Steve Jobs saw him as a personal hero and an inspiration for Apple.
Polaroid had the tech for digital cameras but shelved it as it was going to impact its historically successful film business .
Polaroid neglected the need to explore new territory and enhance their long-term viability.
The original Polaroid Corporation was declared bankrupt in 2001 and its brand and assets were sold off.
Why did Apple succeed and polaroid fail?
2 things
- Customer experience
And
- Innovation
3.TOYS R US (1948 – 2017)
Amidst the rising tides of e-commerce, the business world going global and games converting to online, Toys R Us failed to adjust and adapt
Toys “R” Us filed for bankruptcy in September 2017 under pressure from its debt of US$1bn and fierce online retail competition.
Amazon is now one of the most valuable companies on the planet
Why did Amazon succeed and Toys R Us fail?
2 things
- Customer experience
And
- Innovation
5. BORDERS (1971 – 2011)
Borders was an international book and music retailer was unable to transition to the new business environment of digital and online books.
Its missteps included holding too much debt, opening too many stores as well as jumping into the e-reader business to late.
Sadly, Borders closed all of its retail locations and sold off its customer loyalty list, comprising millions of names, to competitor Barnes & Noble for US$13.9 million. Borders' locations have since been purchased and repurposed by other large retailers.
Why did Kindle succeed and Borders fail?
2 things
- Customer experience
And
- Innovation
7. TOWER RECORDS (1960 – 2004) vs IPHONE
A pioneer in its time, Tower Records was the first to create the concept of the retail music mega-store.
Founded by Russell Solomon in 1960, Tower Records sold CDs, cassette tapes, DVDs, electronic gadgets, video games, accessories and toys.
Ahead of its time for a fleeting moment, Tower.com launched in 1995, making it one of the first retailers to move online.
Its huge exposure to debt led to its bankruptcy in 2004.
Tower Records could not keep up with digital disruptions such as music piracy, iTunes and streaming businesses such as Spotify and Pandora.
KODAK (1889-2012)‘
At one time the world’s biggest film company, Kodak could not keep up with the digital revolution, for fear of cannibalizing its strongest product lines.
The leader of design, production and marketing of photographic equipment hesitated to fully embrace the transition to digital led to its demise.
For example, Kodak invested billions of dollars into developing technology for taking pictures using mobile phones and other digital devices. However, it held back from developing digital cameras for the mass market for fear of eradicating its all-important film business.
Kodak filed for bankruptcy in 2012
https://www.collectivecampus.io/blog/10-companies-that-were-too-slow-to-respond-to-change
Some that come to my mind are:-
- To encourage individuality ,
- being different ,
- empowering thought .
- Embracing failure and risk taking
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