Business world has never been easy! Many people tend to enter it without planning right, hoping they will succeed with impulsive ideas. Not only start-ups can fail in this harsh community, but also famous well established companies. Years of experiences cannot make them unbeatable. Here’s a list of failed businesses and the reasons behind the fail:
Blockbuster a giant USA DVD rental-service provider went from having 50 Million subscribers in 2004 to out-of-business in 2013. A lot of reasons were behind the massive fail but the most important one is failure to adapt to change with technology emerging in the world. Netflix, at its start, proposed to the CEO of Blockbuster to shift it to online store in which the latter refused. As a result? A shut out business with depts.
Pets.com in only 2 years, the two entrepreneurs who founded the website that specialized in selling pets supplies online, managed to spend all funding of 82m$ on a poor business model. They spent the money on costly advertisement and on warehouses. This resulted in major drown of the company as they did not plan all points correctly.
Yahoo from the leader of market to a dead website. Yahoo was the first company to have E-mail services. But, due to poor management skills and decision making, they refused gold opportunities of improvements such as buying technology from founders of Google or even buying Facebook in its early days. This chain of bad decisions what let Yahoo off the market.
MySpace it began as a social network service in 2003. Soon was sold to News Corporation on 2005 and that’s when it started to die. All the legal bindings the new corporation bought with it slowed MySpace progress in the market. On 2009, Facebook started catching the light. It attracted subscribers away from MySpace. Resulting in the selling of the company in 2015 to Time Inc.
Toys R Us The company created by the entrepreneur Charles Lazarus a long time ago on 1948 ended business in 2018 after it filled for bankruptcy. It seems that even toys couldn’t survive the internet Era where giants like Amazon dominated the market. They eventually couldn’t keep up with fierce competition and was driven off-market.