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.

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.

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.

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.