We’ve often seen some of the largest and most influential companies’ success stories, but what about the other side? What about the missed opportunities and other disasters that, in turn, brought some companies to ruin. Well, today, I am sharing here six companies Worst Disasters in this article. Learn why these companies fall and how you keep your business safe from these kinds of blunders. Let’s get straight into it.
1. Kodak focus on past glory
Kodak had the first digital camera back in 1977. Whenever technology changes an industry’s landscape, some businesses adapt and thrive, and others that continue doing the same old thing until it’s too late. For Kodak, he fell behind due to the advent of the digital camera. The situation was a little different, Kodak patented the first digital cameras back in nineteen Seventy-seven. It was one that used a magnetic cassette to still images of about a hundred kilobytes. However, over the coming years, Kodak made so much money off the field that they let the new technology gather dust, not realizing its potential. The company focused on traditional film cameras, even when it was clear that the market was moving towards digital.
When Kodak finally got into the digital market, they were selling cameras at a loss. Still, they couldn’t make up enough sales to catch up to those competitors who had seen digital cameras’ potential early on. Kodak is losing over two hundred million dollars a year. The lesson learned in the world of business always keep an eye on the market and be responsive to future trends. If not, it could cost you everything.
2. Excite could’ve bought Google for less than one million dollars
Excite was number two after Yahoo. Google was nothing at that time. In 1999, Google CEO Larry Page offered to sell Google to Excite for $750,000. According to excite CEO at the time, George Bell, this deal was one percent of excites worth. So financing wasn’t an issue. Larry insisted that if this went ahead, Excite would have to replace all of its search technology with Google’s. George of excitement, for that this was too much and refused the offer.
Excite was eventually bought by Ask Jeeves in 2004, now know as ask.com. At the time, Ask had less than two percent search market share. Google currently processes a billion search results every day. They now have around a $147 Billion in assets, which is more than 196,000 times what Excite would have paid for them.
3. Blockbuster video tents down the opportunity to buy Netflix
The mid nineteen eighties to late nineties when VHS was king. The problem back then was that VHS tapes would cost upwards of ninety-seven dollars per movie. For this reason, video rental stores like a blockbuster, went in to fill in that gap.
Eventually, video streaming services like Hulu and Netflix have destroyed the old video rental business model. Ironically, in the year 2000, Netflix proposed that it would handle blockbuster’s online component. A blockbuster could host Netflix as an in-store component, thus eliminating the need for mail DVDs, which was Netflix’s business model at the time. According to an interview with former Netflix CEO Barry McCarthy, blockbuster just laugh at Netflix out of their office, but that’s not the end of the story. By 2007, blockbuster was on the right track. They had an incident, maybe a component that was steamrolling, Ivan, Netflix. Netflix was struggling, and the upper management wanted to sell the company to blockbuster to save face. Blockbuster’s growth was robust at the time they turned down the offer.
In a strange twist later that year, there’s a border dispute over a blockbuster that sort of change of CEO. The new CEO was Jim Keyes, formally of seven eleven. He came in with the wrong mindset and foot. The blockbuster should be a retail business instead of an entertainment one. Because of this, he didn’t see the value of an online component. Within eighteen months, the new CEO had lost blockbuster eighty-five percent of the company’s revenue. And within three years, blockbuster’s filing for bankruptcy. Blockbuster went belly up, and Netflix went on to thrive since then. Netflix is behind such original shows, such as the house of cards, but Jack horsemen and daredevil. With eighty-three million subscriptions worldwide, Netflix has altered the way many view the entertainment.
4. NASA Lost a Spacecraft Due to a Metric Math Mistake
The Metric Math error cost NASA $125M. Before Google, did you ever get frustrated with the conversion of feet to meters, inches to centimeters? Did you find it difficult? A simple math problem had made some of the greatest minds in the western world. In 1999, Amman’s overtop that Lockheed Martin designed for NASA was lost in space due to a simple math error, where the engineers at located east imperial measurements, while the master employees he’s metric ones. The mismatch led to the thrust is not receiving vital navigation information, which causes the one hundred twenty-five million dollar spacecraft to malfunction. The price was forever lost while trying to get into orbit around Mars after two hundred eighty-six day journey.
5. Nokia refused to use Android
Nokia one of the most iconic brands, the twentieth century, and even up to the first decade of the twenty early century, the company had about fifty-one percent market share of the mobile phone industry at a peak in 2007. But now there is a shell of their former selves, a fond, but a distant memory for many. The start of the company’s fall from grace can be attributed to one moment in 2010 when Nokia CEO, Van Jockey snob his nose up at the idea of using Google’s Android software. You see, at the time, Nokia had an operating system called Symbian.
After the release of iPhone’s in 2007, the development team at Nokia realized that there was a threat. So they divided into two, one team tried to revamp Symbian, and the other team created a new operating system named Micah. The problem was that the two teams are battling for resources from Nokia’s top executives. So, in essence, those internal struggles within the company. It was so bad that whenever Nokia was dealing with outside stakeholders like chip manufacturers, for example, there was so much squabbling within the company. In the tech world, that’s way too long; competitor innovation waits for no one. The logical solution, in hindsight, of course, was Android.
Nokia could have used the open software platform, combined with the in-house hardware, to make up for the less time quickly at a minimal cost. Instead, Nokia CEO at the time decided to skip on Android, calling it a short-term solution. Nokia kept on working on its software efforts, throwing five billion dollars a year. As time went on, the iPhone and Android dominated the market until Nokia’s mobile division was left in the dust. In 2013, the Nokia mobile brand was established by Microsoft. Microsoft couldn’t make the once legendary companies stay fly, either wasting eight billion dollars before killing the Nokia mobile brand.
The moral of the story is to move with innovations, and don’t let pride cloud your judgment.
6. First graphical user interface computer
Xerox is the printer company that had one of the greatest inventions in computing history to apple. Imagine having one of the most excellent twentieth-century devices in your hands and giving it away. Because you didn’t understand what you were holding, Xerox did just that with the Xerox Alto. The Xerox Alto was an experimental computer from 1973, credit to Xerox’s research center. They also were way ahead of time. It was the first modern desktop PC, as we recognize them today. The idea was to mimic the office desk but on a screen—a future paperless office. Xerox Alto is also demonstrating because of the fast graphical user interface, or GUI in a desktop computer.
Before GUIs to do absolutely anything on a computer, you needed to type commands in lines of text. If you mistyped anything too wrong, the computer spits out an error saying it didn’t understand, point, and click on the graphical object was a foreign idea.
Thousands of Xerox altos will build at the research center, but never sold only used heavily in Xerox offices and add a few universities. The Xerox upper management did not understand what they had. The managers just couldn’t see the vision of what the computer of the future could be, but Steve Jobs didn’t know what the future of the computer could be, and Xerox handed it straight to him. At the time, Xerox needed a way to make their experimental technologies like the alto, cheaper.
They saw apple pumping up the apple tools for a low price, so in 1979, they invited Steve Jobs to their research institute to see if he could help them reduce production cost. The deal, so Xerox gained a million shares of Apple stock in exchange for Steve Jobs, getting the inside information. If everything fresh and revolutionary, that was going on at the park’s center. Nobody check to the guys at the research center, but the up a business development team signed off on the deal anyway.
The graphical approach, the computer appealed to the human mind because commands will now be replaced with movements and objects, so felt natural typing lines of text were now a thing of the past. The ideas would heavily influence the apple Lisa piece technology trickle down to the Macintosh, which influenced Microsoft Windows, both of which, with the adventure ancestors to how finds operate today, and the sad thing is Xerox never gets mentioned for any of this.
Those are the six worst blunders by some top companies. I hope you liked these stories about the mistakes of top companies. You need to learn from these blunders and never go astray while making decisions for your business. Subscribe to our newsletter for more exciting companies’ disasters, success stories, and guides to boost your business success.
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