10 Worst Business Decisions Ever Made
Motorola was focusing on factors such as the physical shape of the phone rather than customer experience. At its peak, the company raked in $43.7 billion in revenues. The company's shares fell more than 90% from $107 to $13 from October 2006 - March 2009. While its sleek and stylish Razr phones dominated the market, Motorola had around 22% of the market share, but their lack of initiative cost them dearly.
Motorola is currently owned by Google and the search engine giant is looking to help the phone company reclaim its throne.
2Quaker Oats Snaps Snapple
Immediately, Quaker bungled the drink's branding. Snapple distributors got 33% profit, which was twice the industry average. Quaker cracked ironclad distribution contracts – some had no expiration dates – by dangling the lure of another one of their products, Gatorade. The distributors would surrender big supermarkets and chain stores and in return be rewarded with Gatorade on the routes they kept. Quaker was shocked when they balked at the offer. Distribution got so bad that stock began to pile up and had to be dumped at dollar stores or landfills.
Quaker fired what was left of Snapple staff. Sponsors were let go and advertising atrophied. By 1996, free Snapple was being given away on the street and sales continued to collapse. Quaker raised its white flag, selling the brand to Triarc for $300 million, or $1.4 billion less than they had paid for it just 28 months before.
3Western Union Don't Need No Phone!
4Coca Cola's New Formula: If It Ain't Broke, Don't Fix It!
5Fox Wants Profits Now; We Don't Care About The Future
6That's Not Music To The Ears!
7Kodak's Lack of Urgency
Well, the aforementioned scenarios could have been a possibility had Kodak shown some urgency and initiative while it was at the top of its game. The company is credited as being the first to hold the patent for digital photography back in 1975, but thought that the best move forward would be not to move at all and didn't pursue a future involving digital photography until it was much too late. Kodak filed for bankruptcy in January 2012.
8We Are Not Buying Google For $750,000
It has been reported that Google founders Larry Page, and Sergey Brin was talked into selling their company to Excite for $1 million. Luckily for them, Excite CEO George Bell didn't think too highly of their company and turned down the offer to purchase it for $750,000. The company which wasn't even valued at $750,000 is currently valued at $170 billion today.
9Blockbuster Rejected Netflix for $50 Million
Blockbuster filed for Chapter 11 bankruptcy protection in 2010. They certainly didn't foresee that their decision not to buy Netflix for $50 million would bite them right in the ass.
10Ross Perrot Passes on Microsoft
According to Forbes magazine, Microsoft currently has a market capital of $343 billion.
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