April 3, 2020
9 WORST Company Failures!

9 WORST Company Failures!

9 WORST Company Failures #9. “Kodak”- The Eastman Kodak Company was
founded in 1888 and was the most successful company in the photography industry during
the 20th Century. They were the leaders in bringing the cutting
edge of photographic technology and easy to use cameras to the hands of consumers throughout
the world. But Kodak almost met its demise at the hands
of a product that it actually invented: digital photography. Kodak invented this technology in 1975, but
failed to jump on the innovation, believing that common applications for it were well
into the future. Early on, the company thought that the high
cost and complexity that would be needed to make a push into the digital front weren’t
in Kodak’s best interests. So, Kodak put digital photography to the side
to be picked back up when the time was financially advantageous, but they waited too long. By the time they switched gears, they faced
competitors who had been perfecting their business models with digital photography at
the center, whereas Kodak’s model was still dependent on printed photos. While other companies made deals with websites,
phone companies and focused on online based imaging, Kodak floundered and in 2012 filed
for Bankruptcy. They have since come back from bankruptcy
and started specializing in producing smartphones and tablets. #8. “Pan American”- From 1927 until 1991,
Pan Am was the largest airline company in the United States, but due to bad foresight,
callous labor practices and an uncontrollable disaster this global giant quickly met its
end. The company basically had a monopoly on overseas
travel until World War II but was dealt its first major blow when other strong airline
companies began to up their game. Pan Am fought off the competitors with its
innovations such as jumbo jets and an advanced system for making reservations but these innovations
couldn’t match the corporate aptitude and human relations that the other airlines dealt
with more astutely. One of the main reasons for Pan Am’s failure
was ironically due to its early successes. Because of the sheer size of its fleet, it
was the company hit the hardest by the 1973 oil crisis. Just before the crisis, Pan Am had just purchased
a number of brand new gas-guzzling Boeing 747s and was forced to dramatically raise
ticket prices to recuperate. As it was trying to recover from this setback
it had also become a target of terrorism in the Middle East. To the terrorists Pan Am was a symbol of the
United States overseas because it was the largest U.S. airline servicing the area. During the Gulf War, in the midst of financial
hardships and battles with labor unions, Pan American 103 on a transatlantic flight from
Frankfurt, Germany to Detroit was blown up by Libyan nationals above the Scottish town
of Lockerbie. The incident scared even more customers away
from flying Pan Am and many travel agents would no longer book flights on their planes. All of these events and poor managing of them
led Pan American International Airways to declare bankruptcy and completely fold in
1991. #7. “Borders”- Tom and Louis Borders opened
their first bookstore in 1971. Their vast selection of books and innovative
inventory system turned them into the second biggest chain of book megastores. Due to years of miscalculating the future
of book consumption, the bookstore all but vanished in 2011. It all started in the mid 90s when Amazon
and other online stores hit the scene. Instead of developing their own website and
focusing on online sales, the company decided to further their storefront endeavors and
expanded into Europe and Asia opening hundreds of stores. Their competitor Barnes and Noble, did the
opposite by preparing for the digital age, perfecting their online sales system and focusing
on their storefront operations in the United States. When Borders did start to catch on to the
online market they were already far behind and decided to use Amazon as a host for such
sales. Because of this, as more and more sales were
made online, instead of receiving 100% of the profit they had to share with Amazon. Borders also was caught in the past by devoting
lots of money and inventory towards DVDs and CDs at a time when digital music and video
was on the rise. While Barnes and Noble developed it’s own
e-reader to grab paperless book market by the horns, Borders was extremely slow to adapt
to the change. All of these factors came to a boiling point
in 2006 when, after several years of losing millions of dollars Borders filed for bankruptcy. By 2011, Borders realized there was no way
out and closed most of its remaining stores. The only stores remaining are in southeast
asia where it remain Borders in name only, as they were sold to a company named Popular
Holdings. When they closed their doors they sold their
brand trademark and many other assets to longtime rival Barnes and Noble. #6. “Nokia”- Founded in 1865 as a paper mill,
Nokia slowly worked its way from producing paper to the latest technology. In 1987, Nokia released the first hand-held
mobile telephone and it was an all-time best seller. Because of the resounding success, Nokia decided
to switch their company’s specialty completely to telecommunications. The Finnish based company would be at the
forefront of cellular telephone production and design for the next fifteen years and
even created one of the first smartphones back in 1996. However, the aspect of creating easy to use
and innovative software for their phones escaped them as the phones they created to compete
with the likes of the Apple iPhone and Google’s Android weren’t as user-friendly and prone
to bugs. This was most likely due to the company’s
desire to remain hardware focused and resistance or inability to become software savvy. Almost immediately after the release of the
first iphone Nokia’s sales started to plummet. In order to avoid complete failure, the heads
of Nokia decided to cut their losses and sold their phone business to Microsoft in 2013
for 7 billion dollars. Chump change when you find out that in 2006
they were worth over 150 billion dollars. They have since made a semi-comeback via other
types of technological endeavors such as virtual reality cameras, medical tech and networking
equipment. In 2016, Nokia made a net profit of 26 billion
dollars. #5. “Sony”-The Japanese based company Sony,
founded in 1946, is still one of the most powerful tech companies in the world but they
made a giant misstep that cost them the position of lead-dog in the portable music industry. Throughout the 90s the Sony Walkman was the
main product people turned to for music on-the-go but in 2001 Sony was dealt a major blow when
the Apple iPod was released. How did Sony not see this coming? Well it turns out they did and as early as
the mid 90s the company had the designs and ability to create a digital music device that
would’ve been years ahead of its time but they never released it. When they realized that they suddenly needed
to catch up they found themselves in the same boat that Nokia did with phones. They focused too much on making great hardware
and not enough on creating user-friendly software and lacked a central vision for their product. Instead of having a single streamlined product
like the iPod with an easy to use music interface such as iTunes they released several products
that each had their own programming flaws and weren’t compatible across devices. In addition, the devices were made to only
play a single type of music file so they were only formatted to play music from companies
Sony had contracts with, unlike iTunes which could play several types of files. If not for these mistakes Sony may have become
the most powerful tech company in the world and relegated Apple to focus on personal computers
avoiding the music business altogether. #4. “Yahoo”- Founded in 1994, Yahoo was one
of the dominant web portals in the early days of the internet. But due to a series of bad business decisions
or just plain bad luck, the company started steadily declining in 2000–leading up to
their acquisition by Verizon on June 13th, 2017. The first major mistake that Yahoo made was
failing in their bid to purchase Google in 2002. When the founders of Google told Yahoo they
would sell for one billion dollars Yahoo initially refused, when their chief executive, Terry
Semel, changed his mind and decided to take the offer it was too late, as Google decided
they wanted 3 billion instead. The next missed opportunity that Yahoo bungled
was not offering more money to acquire Facebook. Apparently, Yahoo again offered one billion
dollars to buy the company but Facebook refused. Several members of Facebook’s board came
forward saying that if Yahoo had increased the offer to 1.1 billion that they would have
voted to sell. Yet another deal that fell by the wayside
was when Microsoft offered Yahoo over 40 billion dollars to takeover in 2008. Yahoo rejected the offer citing that they
thought it was too low, but within a year Yahoo came crawling to Microsoft and signed
a deal to use Bing as their search engine, giving up on creating their own. Finally the main reason for Yahoo’s demise
was not adapting fast enough and being content with being a web portal in a search engine
world. #3. “Decca Records”- Decca Records still a
successful record company and exists today as part of Universal Music Group, but makes
the list due to a huge lack of foresight that would have assured them a position as one
of the world’s top music companies. It comes down to one simple error in judgment–they
didn’t sign The Beatles. On the first day of 1962, The Beatles auditioned
for the Decca’s head of Artists and Repertoire, Dick Rowe. They recorded 15 songs as a demo and though
they were nervous, thought they had the contract in the bag. But when making his decision Dick Rowe infamously
quipped “guitar groups are on the way out” and turned them down, opting to go with another
group. Now this may seem like Dick Rowe was a complete
moron but there a few factors that make his position more understandable. The Beatles and manager Brian Epstein later
admitted that the demo wasn’t their best, though they were able to use it to eventually
get a deal with Parlophone from it. It also confirmed producer George Martin’s
beliefs that The Beatles’ current drummer Pete Best wasn’t the right fit for the group
and led to them replacing him with Ringo Starr. On another note it may have partially been
that The Beatles didn’t like the potential deal that Decca could offer as it required
them to pay for record pressing. Decca would eventually recoup from the missed
opportunity thanks to none other than George Harrison, as they signed the Rolling Stones
at his recommendation. Despite it inevitably working out for both
sides, Dick Rowe would forever be known as “the man who rejected the Beatles”. #2. “Sharper Image”-Because of the broad unfocused
nature of the quirky retail chain, you might say it was destined for failure. The fragile business model was based on betting
on the next big thing in home appliances and gizmos. All it took for the brand to crumble was putting
too much money into a products that failed miserably. That’s exactly what happened with the Ionic
Breeze. The product was designed to create a healthy
environment inside of homes by purifying the air, but what it did was closer to the opposite. In 2003, the magazine Consumer Reports published
an article that completely debunked the validity of the Ionic Breeze, finding that it didn’t
clean the air and some of the models even released dangerous amounts of trioxygen, or
ozone. Instead of pulling the product, Sharper Image
decided to sue Consumer Reports for libel and restore their credibility. This backfired as the court ruled in favor
of Consumer Reports. The lawsuit was extreme costly and ended up
only further destroying Sharper Image’s reputation. The failed suit coupled with thousands of
angry customers demanding refunds and voicing their contempt with the company was a major
factor in Sharper Image filing for bankruptcy and closed all of its stores in 2008. The company now exists only as an online store
and monthly catalog. #1. “Blockbuster”-Though they have slowly
been fading into the back of our memories as if a dream, video stores were once a real
thing and were a successful business. Blockbuster, founded in 1985, was the biggest
fish in the sea during the home video gold rush which reached its pinnacle in 2004. But only a few years later the company became
almost non-existent. Blockbuster went from having around 9,000
stores worldwide in the 1990s to less than a dozen today, most of which are located in
Alaska and most likely won’t be around for long. So what happened? Well in 2000, the heads of Blockbuster including
CEO John Antioco made a decision that in hindsight sealed the company’s fate. They were approached by the young upstart
entrepreneur, Reed Hastings with an idea that if Blockbuster promoted his video delivery
service, Netflix, in their stores—he would run their website and online features. Apparently they thought Hastings was joking
and brushed him off. Within ten years Blockbuster was filing for
bankruptcy and Netflix was worth over 25 billion dollars, five times the 5 billion dollars
that Blockbuster was worth at its peak.

100 thoughts on “9 WORST Company Failures!

  1. How odd. No mention of the Union Carbide pesticide leak that killed and blinded thousands of innocent people in Bhopal, India. To me, that seems like a pretty big company failure. Maybe you should change the title of this video to "9 UPBEAT Company Failures".

  2. Seems like doesn't matter how good a company is, they will always fold if the do not expect to keep up with the times of tomorrow. Expect to change for the future trends. What works today most likely will not work tomorrow.

  3. I believe no 8. Had to also deal a case of fake pilots who forged their pilot's license for a free flight, AKA Frank Abegnale

  4. If you want to tell someone a story, then it's obviously not a good idea to simultaneously and repeatedly bang against something at the same time. This kind of "background music" stupidity of so many Youtube video producers never ceases to amaze me. I never had a college professor playing music during a lecture – ever!

  5. I know this is old but I keep telling my kids were in an electronic world. Things happen quick and fast. So beware of the next wave and tread carefully. Don't get in to deep as we know big changes can happen in a nano second. Like everyone trying to read the future. dad 🙂

  6. The biggest plonkers were Yahoo and Nokia. How on earth did Yahoo refuse Microsofts offer? Other notable failures were IBM losing to Microsoft, for failing to realise the money was in selling Operating Systems and apps instead of PCs.

  7. Theranos went from being a nine billion dollar valuation to zero in two years. Moto was "fake it until you make it". They were unable to make a successful product.

  8. And i 2014 the danish telco provider TDC bought Blockbuster doing absolutely nothing about the company 🙁

  9. There is an old danish saying: “Skomager bliv ved din læst” (do what you are best at). I guess it’s not always true. The simple truth is, that companies tend to be self sufficient and can’t see the woods with all the trees blocking the view (another old Danish saying: “Han kan ikke se skoven for bare træer”).

    Well, all big companies should have an independent R&D department employing people that are detached from the rest and only use the resources

  10. I invested all of my money in each of these failure companies! I'm kidding. The only company I miss, is ancient version Kodak, I love photography.

  11. The problem with MP3 players is that in the the begining of the 1990's PC was not as popular as it was with the commercialization of the internet in 1994 and also PC was very expensive to buy in 1995 (today pc's are cheaper Thanks to the tablets and phones) pc is important to transfer music or any kind of Data, we are thinking like 2019 and not like 1995

  12. When Nokia released Sach like 3310 6263 N serious E SERIOUS THE MARKET WAS RUNNING AS FIRE THAT TIME MOBILE MARKET WAS ON 7 SKY FEW TIME LATER SAMSUNG MONOPOLY X TUNES THEY UNBELIEVABLE Samsung n 620 Sach phone was rocking people was crazy to get the phones Nokia and Samsung they introduce ringtones the presentation of mobiles

  13. Companies that did make it would be maybe Honda cars they were 1st sold in motorcycle shops, when gas prices rose people that owned them made them famous for economy and they almost never broke down. Get ready for super high quality Chinese cars they have makes and models better than some Japanese

  14. The only two companies on the list that i have found them guilty are Nokia Because the thick head decisions from CEO Stephen elop and in the second place Yahoo , they have got no business vision , they refused to purchase Google ,Facebook , seriously bro???

  15. I have to say kodac is a camera I would never even think to look at buying. They feel like the pensioner of the digital world.

  16. I remember reading that Philips invented compact cassettes and wanted other manufacturers to pay them a levy of about one dollar on each one they sold. But the likes of Sony etc refused and threatened to bring out their own versions. Philips backed down as they wanted to avoid a format war (similar to what happened with VHS and Betamax years later). So Philips gave up a small fortune.

  17. Rip block buster as kid spending many hours deciding what movie get and the mad rush back so we didn't have to pay late fees

  18. Blockbuster was a shitty business $9 for a new movie you get it for one night and then the late fees I will never shed a tear for them family video $3 for a new movie you get it multiple days believe me there is a reason Blockbuster is gone and and family video continue to open new locations

  19. These CEOs and board members think their such business geniuses and end up making the worst decisions. The sad part is they make these horrible choices and walk away with financial parachutes making them filthy rich. The workers that essentially built the company are left with nothing. When I see on the news bad things happening to them or their families….oh well. I reveled in delight seeing the rich lose all their money, when Bernie Madoff took advantage of their greed. 😏

  20. i seriously want Sony to fail and die but in the videogames industry, anyone who oposses Nintendo has to die, Blockbuster is one of the very few who have actually defeated Nintendo, it's like if Netflix was a punishment from destiny itself

  21. I miss photographs.

    No-keya?? Must be a cheap copy of Nokia. They had the tech for swipe phones before apple. Watch the documentary on how Nokia failed, interesting.

  22. Yahoos demise? They’re still alive and well in spite of marissa Mayer’s attempt to politicize it. I Still use yahoo only. Search results are faster, more accurate and less invasive than any google trash. Only google product I use is this one. And you’d have to be a brain dead moron to put their spybot in your living room.

  23. I remember back in my teens there was once this sort of Walkman tape player/radio. now to make the radio to work you had to slide into its tape holder, this thing was its radio and this was how you got it to play by doing this. if you wanted to play a tape you needed to pull from the player the radio guts. heard to believe today that was at 1 time cutting edge. and it was only 200bucks.

  24. the video ends with a dumbest question, for now:D, for the time, when this video was published(exactly this one 😀 )

  25. Great nostalgic memories going to Blockbuster, trying to figure what movies to borrow that might be good to watch. Lol.

  26. Sony owns rights to the audio driver that allows iTunes and mp3 to function, they missed nothing just saw that the real money is in royalties not hardware.

  27. Nokia has several divisions and sold just their mobile division, not their entire company. Nokia didn't really make a come back they just entered a slightly different branch of business…

  28. forgot about UBER when they pitched their idea to the taxi industry and got rejected. Now look at UBER and look at the taxi industry. Biggest blunder of the century i think 🤣🤣💸💸💸🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️

  29. You fail to mention how Kodak's profits were from proprietary film development in the very late 1990s and early 2000s. The feds finally ruled they were an illegal monopoly and would have to open up their tech to other companies. Minolta was the company that really pushed digital forward. All their models failed but lessons were learned.

  30. Pam Am's main failure was not cheaping out and outsourcing to smaller local airlines the way Delta did. Delta's cheap 3rd parties allowed it to complete with lower pricing. So what if Delta's 3rd party safety record is criminal.

  31. The Pan Am flight 103 bombing was during the Gulf War? The bombing was on December 21, 1988. Operation Desert Shield didn't start until August 2, 1990 and the "war" didn't start until Operation Desert Storm on January 17, 1991.

  32. So Sony wasn't selling MP3 players at the same time as the iPod? They're still selling tons of portable music products including MP3 players. Portable music players have mostly been phased out due to smart phones, you know like the smart phones Sony makes.

  33. Blockbuster's main problem wasn't really something they could control. Almost all of its 9,000 locations were franchises, IE local video chains acquired by Blockbuster. Hence their terms of their deals were vary from franchise to franchise, hence it was almost impossible to implement nationwide programs or sales. When I worked at Blockbuster I remember customers outraged that they couldn't use their Blockbuster coupons at our Fairfax County VA stores because our franchise didn't have to honor them.

  34. If your company isn't looking into implementing blockchain tech, no matter who you are or how big, you're on this list.

  35. Borders failed when they were sold and the top management operates off-site, thousands of miles away from their book store.

  36. Just like Carvana. The auto sales business is being taken over by that company. They have a novelty thing going on. Brick and mortar auto sales are going out of business left and right. Giant bubblegum machines that despense cars. Who’d of thought that would be the next big thing? Wish I would have thought it up. I would be rich.

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