Companies That Failed Despite
Big Moves
Overview
• • Brief explanation of why companies fail
despite making significant strategic moves.
• • Focus on both global and Indian contexts.
Kodak: The Digital Camera
Innovator
• • Big Move: Invented the first digital camera in
1975.
• • Failure: Failed to transition to digital due to
fear of cannibalizing film business, leading to
bankruptcy in 2012.
Blockbuster: The Video Rental
Giant
• • Big Move: Dominant video rental company;
had the chance to buy Netflix for $50 million.
• • Failure: Underestimated the shift to digital
streaming, leading to bankruptcy in 2010.
Nokia: The Mobile Phone Leader
• • Big Move: Dominated the mobile phone
market; early smartphone innovator.
• • Failure: Failed to embrace the smartphone
revolution, leading to decline and sale to
Microsoft in 2014.
MySpace: The Social Networking
Pioneer
• • Big Move: First major social networking site.
• • Failure: Failed to innovate, lost out to
Facebook, and declined in relevance.
Yahoo: The Internet Services Giant
• • Big Move: Had opportunities to buy Google
and Facebook.
• • Failure: Poor management and failed
acquisitions led to its decline and sale to
Verizon in 2017.
BlackBerry: The Smartphone
Innovator
• • Big Move: Known for secure email services
and physical keyboards.
• • Failure: Failed to adapt to the touchscreen
smartphone trend, leading to market exit in
2016.
Sears: The Retail Titan
• • Big Move: Largest retailer in the US;
pioneered catalog shopping.
• • Failure: Failed to adapt to e-commerce,
leading to bankruptcy in 2018.
WeWork: The Co-Working Space
Innovator
• • Big Move: Rapidly growing startup with a
peak valuation of $47 billion.
• • Failure: Aggressive expansion and
unsustainable business model led to a failed
IPO and drastic valuation reduction.
Kingfisher Airlines: The Luxury
Airline
• • Big Move: Aimed to be a premium airline
with luxurious services.
• • Failure: Financial difficulties and high debt
led to shutdown in 2012.
Satyam Computer Services: The IT
Giant
• • Big Move: Leading IT services company in
India.
• • Failure: Involved in a massive accounting
fraud, leading to collapse in 2009 and
acquisition by Tech Mahindra.
HMT: The Manufacturing Pioneer
• • Big Move: A pioneer in manufacturing
watches, tractors, and machine tools.
• • Failure: Failed to innovate, leading to decline
and cessation of watch production in 2016.
Jet Airways: The Premier Airline
• • Big Move: Once the largest airline in India.
• • Failure: Financial distress and operational
inefficiencies led to suspension of operations
in 2019.
Videocon: The Consumer
Electronics Giant
• • Big Move: Leading consumer electronics
brand in India.
• • Failure: Failed to keep up with competition
and technological advancements, leading to
insolvency in 2018.
Subhiksha: The Retail Chain
• • Big Move: Leading retail chain with
hundreds of outlets.
• • Failure: Aggressive expansion and financial
mismanagement led to bankruptcy in 2009.
Tata Nano: The World’s Cheapest
Car
• • Big Move: Introduced as the world’s
cheapest car.
• • Failure: Perceived lack of safety and poor
marketing led to its decline and production
halt in 2018.
Aircel: The Telecom Operator
• • Big Move: Major telecom operator in India.
• • Failure: Unable to cope with competition,
leading to bankruptcy in 2018.
Lessons Learned
• • Summarize key takeaways from the failures.
• • Emphasize the importance of adaptability,
innovation, and financial management.
Q&A
• Questions and Answers
