We all know and talk about innovative business tactics of Bill Gates, Steve Jobs, Walt Disney and Ford. But do you know that there are some business failures that have been immortalized in the history of business management? Some business failures have cost their companies in billions or even lead to organization’s shutdown! Here is a list of some business failures that are the perfect example of what you shouldn’t do in business.
Ford, which is popularly associated with some of the best American cars, witnessed its first flop when it launched The Edsel. Ford, which was too optimistic about this future oriented, experimental car, kept everything about it under the wraps to introduce it as a big surprise in the market. Alas! It went on to surprise the owners. The car, which was launched with fanfare in 1958, bumped immediately and within a year, its production was stopped. Edsel is now taught in business management as an example of worst marketing business failure. The company lost over 250 million dollars.
Betamax Video Recorder
Sony, which is synonymous with excellent technology, once came out with Betamax, a video recorder that allowed you to videotape anything easily. Although, the idea was novel- who wouldn’t want to record one channel when they were watching another, but it bumped. And it went down because it was complicated machinery that looked ugly, was awfully expensive, marketed horribly and was bulky.
Bernie Madoff Ponzi Scheme
Wasn’t it a noble idea? Take money from others, promising them that they will get higher returns and then run away with all of it. Well, Bernie Madoff did that. This Italian migrant tried a six month pyramid scheme and had over 40000 investors and more than $15 million dollars in his kitty. Sadly, he was caught and died a penniless, lonely man.
The new coke
Coke has been a popular drink for decades. But then out of nowhere, the company decided to launch a new flavor. Coke drinkers didn’t really find it appealing. In fact, the company received so many complaints that it had to acknowledge its folly and went back to its classic ingredients.
Once the most glamorous airlines in the world, Pan AM was such a popular airline that it went on to became a part of American culture. People dreamt of becoming air hostess and flight stewards in Pan Am. But then, it failed to revamp itself when the competition grew, was targeted by terrorists and then collapsed in 1991.