Do you know about these Biggest Business Mistakes in History? Know how to avoid them!
Making mistakes is a part of human behavior. Learning from mistakes is great and valuable. But there are two ways to do that. Make your mistake and learn or study what can go wrong by others mistakes.
Check out following business blunders in history with how to avoid it tips.
Coca-cola Company decided to remove its signature drink in 1985 and introduced a new signature drink named New Coke. By the late 1970s, Pepsi was taking market share of Coco-Cola. Coke’s market research concluded that the problem was its flavor. Pepsi was winning it all by those changing taste. So coke came up with New Coke idea.
Coke underestimated the power of brand loyalty and so the new product highly failed on the market.
How to avoid tip – If you are doing something good keep doing it. The other might not be able to snatch your loyal customers. If you do such kind of mistake, you probably won’t get as lucky as Coke did.
For a long time, JCPenney was the go-to discount clothing retailer. They had more than thousands of stores offering the low price. Everything changes when the company hired former Apple retail boss Ron Johnson to take over as CEO in 2012. Johnson made many mistakes from changing company’s logo for three times in three years into pushing brands like Levi’s to open their mini store inside JCPenney. He even fired company’s long-term advertising agency. All he did was a major fail.
How to avoid tip – Don’t try to be something you’re not, ever! Change is good but meaningless change is worst.
PETS.COM reminds us a sock puppet. The company went into its own hype ignoring fundamentals. Hummer Winblad the owner of the company didn’t bother to perform any independent market research. Ware there even customers interested in the home delivery of fake mice and rubber bones? Investor’s $50 million disappeared into the name of history just like.
How to avoid tip – Never take the power of market research for granted. Develop a business plan before you execute the actual one.
EDSEL is an example of spending a lot in market search and then ignoring it.
During the mid-1950s Ford spent millions of dollars to its researchers to develop a new mid-priced brand that will stand out in the market. But in three years EDSEL journey, FORD only managed to sell 118,000 of them. They lost almost $250 million. If we study what went wrong, the first thing comes to mind is the name. Ford spent good time and money after name research but at the end, Ford’s chairman picked EDSEL (the name of founder’s late son).
How to avoid tip – Follow the research and especially when you spent the good fortune after it.
Tie up of Quaker and Snapple
Snapple was a huge hit at small retailers in the 90s. Quaker thought the tie-up could make billions of money. So they paid $1.7 billion for Snapper. But the other competitors like Coco Cola took the market over by introducing the product like Fruitopia. So the tie-up turned out to be a big flop for Quaker. In 1997, Quaker sold Snapple for $300 million. How to avoid tip – Always see your competitors move and especially when you’re planning something big.
There’s a quick lesson to learn from all these mistakes made by big companies.