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Research a company that has stopped innovating or failed to innovate

What and why did it happen? Please link your answer to the four factors in the figure

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MySpace.com

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Nokia

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Blockbuster

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Failure to innovate, lost ground to DVD postal services (now known as Netflix). 

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Failure to innovate, lost ground to DVD postal services (now known as Netflix). 

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Remained satisfied with what they were doing and even rejected offer to purchase Netflix

Strategy/Culture - With a chance to buy Netflix on a couple of occasions and their decision not to, Blockbuster clearly never envisioned a future for streaming

As CEO of Netflix Reed Hastings said:

“if Blockbuster had launched their own streaming service two years earlier, Netflix may never have happened”.

Leadership - John Antioco - CEO of Blockbuster. Failed to construct a network within his own organization that could carry his ideas of change. He also failed to realize the grand potential of video streaming services.

"Antioco's fatal flaw wasn't one of intelligence or capability, but a failure to understand the networks that would determine his fate."

Organizational structure - It was a very tight network with extreme efficiency, but poorly suited to let in new information.

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Blackberry

• Biggest cell phone company in the world at one time

• Kept on the same business model; Didn’t innovate; Became complacent

•  Hardware Innovation

•  Operating system

• BBM exclusivity

• No focus on Touchscreen technology

• Losing the Corporate Market

• Underestimating the competition

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Nokia
Failed to pay attention to their external environment
focusing on hardware rather than software
high levels of company bureaucracy
comfortable with their positions

Internal factors were the biggest factors

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Polaroid
- Declared bankruptcy in 2001 due to the inability to shift with the market to digital photography

- History of slow shift to understand market and deliver quickly (1970 camcorder). Suffered a $15 million loss

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MySpace, a website that was once the dominating social networking until Facebook came onto the scene. Funny enough, in 2005 Myspace CEO Chris DeWolfe actually met up with Facebook founder Mark Zuckerberg to discuss business together. Mark offered to sell Facebook to Myspace for $75 million, which Chris ended up saying no to.

Because of the growth of Facebook, MySpace started seeing a decline of their users and decided to change its niche. The flexibility and free expression allowed on the myspace platform was once its biggest differentiator had become the most common reason for users leaving.

In 2011 the company changed its focus from social networking to entertainment and music only. But later that year MySpace fired nearly 500 employees after a sustained loss of users.

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- There were two main reasons for the collapse of Polaroid – a misguided business model and fear of being innovators in their field.

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- There were two main reasons for the collapse of Polaroid – a misguided business model and fear of being innovators in their field.

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- Their whole focus was on instant film. This led to serious mismanagement of funds, including large investments in digital photography R&D that the company failed to capitalize on.

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MySpace.com

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Myspace is an American social networking service founded in 2003 by Chris DeWolf and Tom Anderson. MySpace, a website that was once the dominating social networking until Facebook came onto the scene. Funny enough, in 2005 Myspace CEO Chris DeWolfe actually met up with Facebook founder Mark Zuckerberg to discuss business together. Mark offered to sell Facebook to Myspace for $75 million, which Chris ended up saying no to.

Because of the growth of Facebook, MySpace started seeing a decline of their users and decided to change its niche. The flexibility and free expression allowed on the myspace platform was once its biggest differentiator had become the most common reason for users leaving.

In 2011 the company changed its focus from social networking to entertainment and music only. But later that year MySpace fired nearly 500 employees after a sustained loss of users.

Amy Lee describes how the social network fell apart.

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Reason for Failure:

1.      Loss making Business : Wework has been losing money to force competition out (similar to Uber/Amazon)

2.      Golden Parachute: Wework CEO cashing out stake in 2017 (~1.7 B) just before planned IPO.

3.      Claiming to be tech firm - economies of scale

4.      Marking up Valuations: Being valued at 50B but adjusting it to 5B by end of 2019

5.       Inconsistent mission statement : Wework changed mission statement 5 times in about 10 years

- WeWork's major problem is its occupancy rate and average revenue per year.
- As per a stat, the occupancy rate of WeWork fell to 80% in 2019. And, the average revenue per member fell to $6,360 a year.
- WeWork lost $ 2 billion in 2019 alone. Aggressive expansion, lower occupancy rate, charging basic rates for its deluxe properties, high lease costs, high operation or variable costs were some of the factors that contributed to its loss.

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In June 2010 came BlackBerry's death rattle with the release of the iPhone 4. Soon after its release, Apple's phone sales surpassed BlackBerry for the second time. But this time, they stayed there.

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BlackBerry was slow to change. Its company ethos was built around designing a great product that just worked and iterating on it very slowly. To that end, they would add small features over time, but they weren't shooting for big, sweeping changes that would shock and delight consumers.

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2008-16 was a period when the mobile industry was rapidly changing and many companies were looking at this change positively. Blackberry, on the other hand, didn’t want to change their ideology

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Lack Of Innovation To Expand The Customer Base

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Lack Of Innovation To Expand The Customer Base