The Top 4 Business Blunders in History
Business Blunders you Can Learn From…
We all make mistakes in life and this is no different in business. As we covered in a recent blog, many successes are born out of failures but sometimes those failures can end up being significant business mistakes that can come at quite a price or even derail a company. Here are 4 of the biggest business blunders in history…
Coca Cola changing their taste
In 1985, to celebrate their centennial anniversary, Coca-Cola changed its made a bold move to change their secret formula and launched “New Coke” claiming it had a refreshing new taste.
The decision to change its taste was met with great distaste. Customers missed the old Coca-cola and wanted it back, rejecting the new flavour. When new coke was initially launched, sales dropped by 20%, leaving the company no choice but to return to its original formula.
Blockbuster’s multiple rejection to offers from Netflix
In 2000, a booming Blockbuster was approached by Netflix to buy the online video rental company, which had got into financial difficulty. Blockbuster declined the $50 million offer, signing a deal with another company.
In a strange twist of fate, Blockbuster found itself in much the same position after it failed to go digital and ended up filing for a Chapter 11 bankruptcy protection in 2010. By 2013 all its high street stores ended had closed.
Excite rejecting offer to buy Google
In 1999, Excite rejected the offer to buy Google for $750,000, a price that heavily reduced by Google’s Founders after an initial offer of 1$ million.
At the time the reason the offer was turned down by Excite’s CEO George Bell was that Google was not considered to be worth as much as $750,000. Fast-forward to present day and Google is valued at $395 billion. We can’t help feeling that George Bell would be kicking himself.
Motorola missing a major Smartphone market share
During the mid-2000’s, when smartphones were first introduced, Motorola had a tidy 22% market share with its thin and stylish Razr phone. It wasn’t long after the release of iPhone and BlackBerry that Motorola was buried under the excitement of two major players and was virtually forgotten.
Motorola’s lack of innovation caused a 90% drop in shares from $107 to $13 between October of 2006 and March of 2009. Google now owns Motorola, and is working on a plan to get propel Motorola back up to its position as a major player in the smartphone industry.