Hundreds of people come up with thousands of great business ideas every day. However, some of them succeed while others are crushed sooner or later.
Why? Why do even great ideas fail? Is it the lack of planning? Lack of communication with the customers? Or is it the failure to innovate?
Several business leaders and managers have pondered about how to craft strategic business objectives perfectly aligned with its business needs. But still, some of them failed. Here are some illustration and case studies of businesses that failed even after having a great business idea. Take note of the learnings and how you can avoid making the same mistakes.
- Yahoo – Lack of Unique Value Proposition
Yahoo is a lost horse in the search engine race. Once, it used to be the most used search engine for web aggregation and online search. However, the problem with Yahoo was that it charged its customers for services like sharing files and sending emails. When this was happening, Google, the current search engine giant, provided these services for free.
Naturally, everybody migrated to Google. This approach came out to be a commendable result for Google but shattered the bones of Yahoo. Now, Yahoo has grown into the largest portal for sports, news coverage, financial, and web, but it has drifted from an online search, paid advertisements, and customer query resolution.
Take Away?
Figure out the true value your organisation brings to the table, which is unique from what others are offering. And once you do, stick to your guns and communicate the same with your customers clearly and in a compelling fashion. For in-depth knowledge or expert guidance, you can always refer to certificate courses for management.
- Blockbuster – Failure to Innovate
In 2004, Blockbuster was at the peak of its growth. They even managed to survive the transition from VHS to DVD. However, once the world started to stream videos on their phones and computer, Blockbuster’s retail outlets became outdated.
And the introduction of Netflix was the last nail in the coffin. After which, they backed down and became outdated, which led to the closure of hundreds of stores.
Take Away?
Rather than being a leader, Blockbuster started chasing the industry and business strategy of its competitors. Learn how to adapt and communicate better. It doesn’t matter if your organisation is truly engaged in conversation with the customers/viewers/users; if you fail to innovate, some company or brand is going to outperform yours.
- Food Panda – Lack of Planning, Structure, and a Business Model
Foodpanda lost its image in the global market. And in 2014, it sold its Delivery Club business to Russia for $100 million. In 2017, Foodpanda was acquired by Ola, and it has been downhill ever since. The business of the company was grounded, and Ola fired hundreds of employees.
In 2015, Foodpanda acquired funding of $310 million. But failed in spite of the humongous cash inflow. Why?
Miscommunication, technical faults, an unstructured business model, and a lack of leadership – are just some of the innumerable reasons that led to the failure of the food delivery service app. Furthermore, the company was handing out free vouchers to anyone whose order was not delivered. This led to many fake customers as these free vouchers were lucrative to them. The loophole was that Foodpanda did not follow up with the restaurants or the customers and just handed out the vouchers, no questions asked.
Take Away?
Proper planning is the secret sauce on which the entire dish’s (business) flavour is based. And not just short-term goals, you must look at the bigger picture and your organisation’s long-term goals. Using tools and methodologies such as Lean Marketing, Experimentation, and technical audits, you can save your organisation from foreclosure.
A business management course is an invaluable source of quality education. So consider enrolling in one. One such array of online courses are the best business management courses from MICA. Boasting an extensive curriculum and unique LIVE & interactive pedagogy, these certificate courses for management are ideal for professionals looking to build a career in this domain or simply want to advance their knowledge.
- Nokia – Inability to Sustain a Profitable Position with Proven Revenue Streams
One of the largest, most go-to brands for mobile phones dramatically failed because they didn’t embrace the concept of software and focused on hardware to avoid alienating current users.
During the 90s and early 2000s, Nokia was the global leader in mobile phones. But even after having a profitable position, they were knocked out of the park. They had proven revenue streams, but when the internet came into existence, they didn’t accept that voice would not be the future aspect of communication.
This was one of Nokia’s biggest mistakes – not wanting to focus on user experience caused them to develop a messed-up operating system and a bad user experience, which obviously was not right for the current market. In 2008, Nokia tried getting back into competition with android but failed miserably as other cell phones were offering a lot more at less price.
Take Away?
Stay up-to-date with the latest trends of the domain. No matter how valuable or profitable your organisation is, if the wind of the trends is shifting, you have to too.
The ideal way and cost-effective way to stay abreast of industry trends is by pursuing certificate courses for management. MICA is offering one such array of interactive and extensive online courses you can rely on. The best business management courses from MICA can not only provide you exposure to the latest trends of the domain but also help you become a successful business analyst in India.
Bottom Line
Things move quickly in the business domain. One day things seem fine and profitable, and the next day, a new trend hits, and everything is swayed away with the wave. So you need to stay on top of your planning, budgeting, management, domain trends, and R&D.
Online certificate courses for management are the ideal way to do just that. The best part? A graduation or diploma degree is all you need to pursue business management courses online. You can always opt for the best business management courses from MICA. Offered on the Talentedge platform, these courses can help you understand the reasons behind the success and failure of a business and how you can steer your organisation away from hitting rock bottom.