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failure
Syed Irfan StartupTalky Team
Community Manager @ Coder
Asked a question 3 years ago

COMPANIES THAT FAILED TO INNOVATE, RESULTING IN BUSINESS FAILURE

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1. BLOCKBUSTER (1985 – 2010)

Home movie and computer game rental services giant, Blockbuster Video, was founded in 1985 and arguably one amongst the foremost iconic brands within 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 a suggestion to sell their company to Blockbuster for US$50 million. The Blockbuster CEO, wasn't inquisitive about the offer because he thought it absolutely was a "very small niche business" and it absolutely was losing money at the time. As of July 2017, Netflix had 103.95 million subscribers worldwide and a revenue of US$8.8bn.

 2. POLAROID (1937 – 2001)

 Founded in 1937, Polaroid is best known for its Polaroid instant film and cameras. Despite its early success in capturing a market that had few competitors, Polaroid was unable to anticipate the impact that digital cameras would wear its film business. Falling into the ‘success trap’ by exploiting only their (historically successful) business activities, Polaroid neglected the requirement to explore new territory and enhance their long-term viability. 

3. TOYS R US (1948 – 2017) 

Toys “R” Us may be a newer story about the financial struggle one amongst the world’s largest toy store chains. With the good thing about hindsight, Toys "R" Us may have led to its own undoing when it signed a 10-year contract to be the exclusive vendor of toys on Amazon in 2000. Amazon began to permit other toy vendors to sell on its site in spite of the deal, and Toys "R" Us sued Amazon to finish the agreement in 2004. As a result, Toys "R" Us missed the chance to develop its own e-commerce presence early. Far too late, Toys “R” Us announced in May 2017 its arrange to revamp its website as a part of a $100 million, three-year investment to jump-start its e-commerce business.