10 Companies That Failed To Innovate, Resulting in Business Failure
21-10-2019, 18:20 - Views: 1501
"It’s crazy to think that 88% of the Fortune 500 firms that existed in 1955 are gone. These companies have either gone bankrupt, merged, or still exist but have fallen from the top Fortune 500 companies. Most of the companies on the list in 1955 are unrecognisable, forgotten companies today. As the life expectancies of companies continue to shrink, organisations must be more vigilant than ever in remaining innovative and future-proofing their businesses."
Below are 10 famous companies that failed to innovate, resulting in business failure:
1. Blockbuster (1985 - 2010)
2. Polaroid (1937 - 2001)
3. Toys "R" Us (1948 - 2017)
4. Pan Am (1927 - 1991)
5. Borders (1971 - 2011)
6. Pets(Dot)Com (1998 - 2000)
7. Tower Records (1960 - 2004)
8. Compaq (1982 - 2002)
9. General Motors (1908 - 2009)
10. Kodak (1889 - 2012)
The one that stood out to me the most was Blockbuster who were arguably one of the most iconic brands in the video rental space (and one that I will miss the most!), but in 2010 filed for bankruptcy after failing to innovate and not being able to move towards a digital model.
Ironically they were approached by Netflix in 2000 with an offer to sell their company to Blockbuster for $50,000,000 but the Blockbuster CEO was not interested as he thought it was a very small niche business that was losing money at the time.
Other companies that came as a shock were Toys "R" Us and Kodak.
These are prime examples of businesses getting too comfortable with how they operate and failing to think ahead resulting in business failure.
Read the full article here by Frances Goh with more information on the journeys of these businesses:
Last edited by Beth; 21-10-2019 at 18:23.