Death of Brands: Top Business Mistakes
Owning a company in this day and age can be a big challenge. The economy is constantly changing, and trends are continuously evolving.
Businesses that thrived ten years ago aren’t necessarily thriving today. This can be due to several reasons, but the main culprit is usually due to lack of innovation.
Companies come and go—but when huge names such as Sears, Blockbuster, or Toys “R” Us went out of business, it was a surprise for many. For Halloween, we decided to dive deep into these tragic deaths. In this infographic, we lay out all the facts and tips on how you can avoid fatal business mishaps.
Top Three Mistakes
The list of reasons why companies go bankrupt is long. So, we narrowed it down to three main reasons we see companies met their demise.
Unwilling to change
Brick and mortar stores are a rarity these days. It’s not a rare occasion to see your favorite stores close down in this decade.
The reality is, stores need to make a safe transition to the Internet to survive today. Ecommerce is essential for every business. We need to sell custom products online without any up-front investment.
For example, Blockbuster continued to invest significantly in their physical stores instead of exploring new options in digital resources.
Unwilling to invest
When Sears continued to sell home appliances whereas department stores were selling clothes, it created a big dent in their revenue.
Sears didn’t bother to do their research and didn’t want to improve their stores while competitors innovated.
When businesses are unwilling to invest in research and development, it can result in their downfall.
Unwilling to get out of their comfort zone
Being in your comfort zone is nice. It’s comfy, and you don’t have to do any hard work.
However, staying in your comfort zone for too long can cause you to fall way behind in rankings.
For example, Toys “R” Us didn’t try to innovate and stayed in their comfort zone. This resulted in them depending highly on the holiday seasons for their sales to cover their debt.
In the end, Toys “R” Us crumbled and ended up closing their stores.
Embed This Image On Your Site (copy code below):
