Why Companies Fail? The Tendency of Giants to Keep Living in the Past
I did a little Google search to map out what others think about why companies fail. You will see lists of up to 50 reasons from sources such as Success Harbor. Others, e.g. Forbes, dives into giving reasons for why 80% of startups fail.
In the case of providing multiple reasons, Success Harbor is simply providing a comprehensive list of possibilities. And, there is no limit to deriving possibilities. With a decent level of argumentative skill, you can make a case for any plausibility.
On the other hand, the statement of 80% businesses failing is a questionable one. You cannot measure such a wide pool of data in a single observation. In order to have a comparative system, we must be able to categorise businesses. We must be able to tell from the start which businesses are more likely to fail.
For example, a business that starts without a proper business plan and defining it’s niche has a higher chance of going down the drain. Similarly, a business that is unable to put the right effort in the right place, for instance building a great product but not marketing it properly, is more likely to fail too.
But, on this article, we are interested in stating why once successful businesses fail. And, the answer is simpler than you might think.
Why Companies Fail? Giants Living in the Past
When the reason is outly stated, it sounds so simple. Yet, big companies keep repeating the same mistake.
Big companies keep repeating what once worked for them.
A large billboard on the highway worked wonders until 10 years ago. So, some companies are still paying similar or higher amounts to this day.
You could publish an ad in the newspaper – in a printed newspaper – and your phone would start ringing. Guess what, people are still doing it and paying stupid prices for it.
Printing 1000s of flyers and dropping them inside homes worked. People still do it. (They are not just annoying, I cannot recall reading one since 2010 – straight to the bin).
To be fair, fliers are now only done by small businesses in general, but you will be amazed by how many people still ask us about them. And, we are clearly a digital marketing company.
If I go into providing examples of giants failing by living in the past, this article can be turned into a book. We can talk about Kodak, Radioshack, Toys are Us, Blackberry, Nokia, Xerox, Blockbuster, Yahoo, MySpace, Sears, Polaroid, Motorola, Circuit City, Netscape, Atari, Pets.com, Tower Records, HMV, Compaq, America Online, TiVo, and many more.
(We are not suggesting that these companies only failed because of living in the past. But, the reason of living in the past is the only commonality between all these options).
So, what should you be doing in 2019?
Leaving your traditional practices behind and going where your present and future customers exist. And, that is the internet.
And, the field of marketing that deals with online marketing is digital marketing. Based on your niche, you can look into a plethora of options and choose accordingly.
In our case, we specialise in ranking businesses on search engines through SEO and user friendly web design. But, the cherry on the top is digital psychology. We target the right customers for our clients through a little help from applied psychology, strategic management, and data analysis.
To discuss your needs, please feel free to get in touch today by using one of the following options.
We look forward to working with you.