Article created by: Dominyka
Sometimes, one bad decision is all it takes to turn things completely upside down. While that is true in one’s personal life, too, it’s often the case with businesses, where one bad call can bring all processes to a halt.
Members of the ‘Ask Reddit’ community have discussed such terrible decisions, after one netizen asked about what made successful businesses take a big hit or even go under. Netizens covered a bunch of different examples, pointing out exactly what led to the fall of the enterprises, so if you’re curious to learn more about the whys and hows, scroll down to find their stories on the list below.
Haven’t seen it yet but GE making Jack Welch CEO. GE was one of the gold star companies of the US, EVERYBODY wanted to work at GE because you’d be set for life. They took care of their employees, made a ton of money, made good products, what more could you ask for? Then Jack Welch came in and started firing people left and right, eliminating product lines, getting into finance, worrying about the stock growth.
Fast forward to today where GE is now three separate companies: Healthcare, Energy, and Aviation. Jack Welch pretty much single handedly broke down a company that was started by Edison and made some of the greatest technological advancements in the last century. That man is the worst.
BlackBerry for letting their arrogance think that Apple or Google couldn’t challenge their majority in the smartphone market. Also, ignoring creating a smartphone without a physical keypad until it was way too late.
Two obvious cases come to mind:
1) Kodak (remember the film brand?) invented the digital camera in 1979 but did not pursue that line because they thought it would hurt film sales.
2) Blockbuster Video had an opportunity to merge with Netflix to manage online streaming content, but declined. Blockbuster was sure that video rental would never end.
I still laugh about tumblr’s decision to ban all adult content on their website…which was like 95% of their active user base.
“Our office is returning to in office 5 days a week to scare off talented introverts and attract psychopaths” -lots of companies with job posts today.
Delivering ‘shareholder value’. Boeing, Intel, Blizzard and Ubisoft to name a few. Companies need to deliver value for their customers instead, the shares and dividends will follow.
TVs in a quiet restaurant.
I can understand TVs in a sports bar, but for the love of spaghetti, leave them OUT of the restaurants!
I used to carry a [TV B Gone]( until people started getting wise and disabled the remote input.
At one restaurant, on a date, there was music and conversation, and the TV in the corner droned along as everyone tried to ignore it. Then one guy got up and unplugged it, and the whole restaurant clapped!
Nokia embarking with Windows for their smartphones
Microsoft ruining everything they touched in order to get cool: Skype, Skype for Business, Hotmail, IE6, OneDrive, aQuantive, Danger Inc., Band, Bing, Bob, Groove Music, Cortana Speakers, Zune and so many others.
1) Sears saying they wouldn’t take Visa or Mastercard, only Discover. Never shopped there again.
Susan G Komen hired Karen Handel after her failed bid for GA gov on an anti abortion platform. Karen convinced the founder that defunding Planned Parenthood mammograms would increase donations from the right.
They didn’t realize how many of their donors were not conservatives. Massive PR debacle and wave of donors asking for refunds.
So Komen said ‘oops, that was a bad move so we’re NOT defunding Planned Parenthood mammograms.
Conservatives then asked for donation refunds and non conservatives stayed away.
The nonprofit went from the most trusted name in charities to shuttering most of its local offices and reducing its revenue close to -60%.
Enron commiting fraud on a massive scale. Granted, it’s also the only thing that made the company in the first place.
Yahoo had an opportunity to acquire Google for around $1M but decided not to. Since then, Yahoo, which was once a tech giant, saw a significant decline over the years and was acquired by Verizon in 2017 for about $4B. Fast forward to today, Google is now a powerhouse worth around $2T.
Osborne Computer began showing off its next-generation computer when it wasn’t ready yet. Everyone canceled orders for the in-market model in anticipation of the new one, which tanked the company.
Maybe not *worst* decision but generally bad business is to give the consumer too many options. Like a sandwich place with 100 sandwiches on the menu. In reality, most of them are similar with one thing subbed for another. It’s confusing for consumers, servers and the kitchen, annoying for everyone, and it slows turnaround down driving down revenues.
Atari delayed the release of the 7800 by half a year as it tried to renegotiate royalty rates paid to cartridge developers.
In the meantime NES launched and took the market.
The 7800 had comparable tech and could also play all of the old 2600 games too.
I always think of TWA Airlines.
TWA was a legacy airline from the earliest days of airlines. However, after deregulation in the 70’s, they were struggling to compete. Desperate for cash, they allowed corporate raider Carl Icahn to purchase majority ownership of the airline, which provided some much needed cash.
Included in the takeover agreement was a small clause that required TWA to sell tickets to any of Icahn’s companies at-cost, meaning zero profit. It sounded like maybe TWA would give a few seats to some corporate travelers.
Nope. One of Icahn’s companies was a travel agency, and they sold huge numbers of tickets to the general public below market value and for zero profit to the airline. Flights would be 100% full and make no money. Hamstrung by the inability to adjust fares to make a profit, the airline was forced to cut costs, cut or eliminate popular services and benefits, and cease flying on some routes altogether.
Eventually TWA could not survive and it was bought by American Airlines in 2000.
Intel’s decision to forego purchasing ASML’s EUV lithography machines until their competitors purchased all of ASML’s production putting Intel years behind. To their credit Intel took delivery of one of ASML’s machines about six months ago. These machines are so advanced that it will be another 18 months until Intel can manufacturer chips using these machines.
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