Most of these failed companies that existed in 1955 are gone. Some of these companies were due to bankruptcy, while some that still exist are not among the top 500 fortune companies. This present era, companies must bring new innovation for them to be in existence.
List of 10 failed companies due to lack of innovation
The following is the list of failed companies:
1. Failed companies: Blockbuster (1985 – 2010)
Blockbuster was among the failed companies, they were known for their home movie and video game rental service. In 2004, they employed 84,300 people across the globe and had over 9,094 stores. They went bankrupt in 2010 due to their inability to change into a digital model. The company was established in 1985 and it was a well-known service rental firm at that time.
2. Failed Companies: Polaroid (1937 – 2001)
Polaroid was known for its instant film and cameras. They were able to withstand all their competitors but they were not able to anticipate the benefit of digital cameras on their film business. Polaroid was myopic to explore into new areas in order to increase their longevity. The company was shut down in 2001 and all the assets of the company were sold off.
3. Failed companies: Toys R Us (1948 – 2017)
Toys “R” Us had financial struggle and they are one of the largest toy stores in the world. In 2000, they signed a 10-year contract to be the main supplier of toys on Amazon. In spite of the deal they had with Amazon, Amazon still allows other companies to sell their toys on site. Toys R Us went into bankruptcy in September 2017 due to their huge debt of US1bn.
4. Failed companies: Pan Am (1927 – 1991)
Pan Am (aka Pan American World Airways) and it was established in 1927. It was the biggest international air carrier that was in the United States. Pan Am was the first airliner to provide digitalized reservation systems. Pan Am became one of the failed companies due to mismanagement and not investing in the future.
5. Failed companies: Borders (1971 – 2011)
Borders were a company that was dealing in book and music retailer. The company was established by two brothers while at University. The company failed for not going digital in their business and they were holding too many debts. They sold all their customer loyalty list to their fellow competitor Barnes and Noble for US$ 13.9 million.
6. Failed companies: Pets.com (1998 – 2000)
Pets.com was into the selling of pet accessories and supplies to customers on the internet. The company was founded in August 1998 and they went bankrupt within 268 days. During their brief existence, they had a very high profile. As a result of the company shutting down, US$300 million of investment capital was lost.
7. Failed companies: Tower Records (1960 – 2004)
Tower Records was the first company that brought the idea of retail music mega-store and it was founded by Russell Solomon in 1960. They sold things such as cassette tapes, video games, toys, and electronic markets. Tower Records was founded in 1995 and they were the first retailer to go online. The company was not able to carry out digital disruptions such as iTunes and music piracy.
8. Failed companies: Compaq (1982 – 2002)
Compaq was the biggest sellers of personal computers in the world in the 1980s and 1990s. They produced some of the first IBM personal computers. Compaq became one of the failed companies due to their inability compete with Dell in terms of prices. HP bought the company for the sum of US$25 billion in 2002.
9. Failed companies: General Motors (1908 – 2009)
General motors were renowned manufacturers for over 100 years, and it is the biggest companies across the globe. They were not conscious of other factors such as competitors and innovation led to their inexistence. They focused mainly on making a profit from finance and failed to improve the quality of their product.
10. Failed companies: Kodak (1889-2012)
Kodak failed not to keep up with the digital changes for fear of not changing their product lines. They invested billions of dollars for technology development for taking photographs. They didn’t produce digital cameras for the mass market for fear taking away their important film business.