Companies Who Failed

 

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Many businesses are competitive nowadays, they are doing their best to climb to the top though some are just doing it to stay on track. Every one of them is releasing different products and models, and even offering discounts just so consumers will purchase from them. They are keeping up as modernization embrace our society. But what happens to those companies who failed to keep up and just keep their traditional ways of running their business? For today's blog, I'm gonna share businesses that were famous but not anymore and the reason behind it.

THE BLOCKBUSTER (1985-2010)

Blockbuster Video was an American video rental store chain. It was founded by David Cook in 1985 as a stand-alone mom-and-pop home video rental shop, but later grew into a national store chain featuring video game rentals, DVD-by-mail, streaming, video on demand, and cinema theater. This arguably one of the most iconic brands in the video rental space.  At its peak in 2004, Blockbuster employed 84,300 people worldwide and had 9,094 stores. Unable to transition towards a digital model, Blockbuster filed for bankruptcy in 2010. In 2000, Netflix approached Blockbuster with an offer to sell their company to Blockbuster for US$50 million. The Blockbuster CEO, was not interested in the offer because he thought it was a "very small niche business" and it was losing money at the time. As of July 2017, Netflix had 103.95 million subscribers worldwide and a revenue of US$8.8bn.

TOY R US (1948-2017)

Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids and various others. The company was founded in 1957; its first store was built in April 1948, with its headquarters located in Parsippany-Troy Hills, New Jersey, in the New York metropolitan area. Toys “R” Us is a more recent story about the financial struggle of one of the world’s largest toy store chains.  With the benefit of hindsight, Toys "R" Us may have led to its own undoing when it signed a 10-year contract to be the exclusive vendor of toys on Amazon in 2000. Amazon began to allow other toy vendors to sell on its site despite the deal, and Toys "R" Us sued Amazon to end the agreement in 2004. As a result, Toys "R" Us missed the opportunity to develop its own e-commerce presence early on. Far too late, Toys “R” Us announced in May 2017 its plan to revamp its website as part of a $100 million, three-year investment to jump-start its e-commerce business. In 2019, much to the delight of anyone who once considered themselves a Toys R Us kid, the beloved toy chain reemerged — but on a much smaller scale. It now operates two mall stores: one in Houston and one in Paramus, New Jersey.

*Side Comment :)

    Based on this, these companies failed just because they failed to keep up with their competitors and could not adapt to the changing market conditions. Modernization was also part of the reason because of new inventions and rising competitors using these new technologies, many failed to keep up leading to loss of sales and resulting in the filing of bankruptcy. it is not bad to trust in the new era, but we just need to be careful to ensure that we are on the right track. This is all for my blog see you on the next one!