Why Did 429 Companies Fail? Succeed After 60 Years? Essay

The Industrial Age company is a traditional company, which believes in uniformity, stability, permanence, security, and competition; however, the Information Age company is totally contrasted. The Information Age company focuses on diversity, cooperation, flexibility, motivation for cooperating, and communication by using information over e-commerce. The impact of control of information and how it is creating super valuable companies like Apple, Google and Facebook can be seen during these days. Each company controls massive amounts of data on consumers, creates products that leverage that information, and delivers services that are therefore irresistible.

The article “When Giants Fail - What Business has learned from Clayton Christensen” has revolved around a simple question “Why is a success so difficult to sustain”? He explained how big and rich companies at the peak of their power one year and a few years later they will be struggling.

For a product to blossom you must target the younger generation first. With constant technology improvements it’s hard for the older generation to keep up. The younger generation is constantly working with the new technologies so you inform the younger generation and it will spread to older

An article called “, Knowing When To Reinvent,” was composed by three company leaders, one being a CEO, to inform other company leaders about potential fault lines that have caused many companies to have downfalls. However, to prevent economic downfalls, the authors compiled a list of the downfalls and how to avoid them. Many companies have taken what seemed to be drastic measures to be successful in a changing marketplace. The thesis outlines the five fault lines within the article which are: customer needs, performance metrics, industry position, business model, and talent and capabilities (Bertolini et al., 2015).

Answer: Three main characteristics of the winner have succeeded as a successful company they are:

Many companies in the age of information are slow to adapt along with the rapidly changing technologies. A prime example is of refusing to adapt is Blockbuster. During the height of Blockbuster they operated over 9,000 stores, now they only own 50 and are officially defunct. In the early 2000s Netflix attempted to sell Blockbuster their business and were laughed out of the boarding meeting. Now Netflix boasts $5.05 Billion annually while Blockbuster has been nearly wiped out. Improving hardware and software is key to obtaining a sustainable and profitable business.

XYZ after it was one of the best and most major players in the electronic market, had started to lose its touch when it refused to run with the big flow of change, innovation & creativity that have invaded our business world. After a thorough thinking, they’ve decided that time has become to reinvent themselves and adapt their Resources, processes & values with what the current business world requires. (Christensen C.M. and Overdorf M, 2000).

Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local

In modern society, technology has affected in every area and industries, and helped develop more advantage than tradition industries without technology. E-commerce, Customer Relationships Management (CRM) and online sales etc. are widespread use in many organisations around the word (Philip Kotler., 2013).

Over the past few years technology has caused significant changes in the way enterprises conduct business.

Southwest Airlines encourages respect, innovation, a caring attitude and strives to adhere to all labor and employment laws which includes respecting privacy and equal opportunity. With a strong concern for avoiding corruption and avoiding anti-competitive behavior, they work hard to maintain accountability of all business practices. An example of this is the promotion of competition to provide consumers low air fares and a variety of high quality air service offerings across the US. This shows their devotion to the community they serve and maintains the company culture.

Furthermore, organizations have to adapt to the desires of the market, even if that means competing with themselves. Technology has the prospective to be disruptive of markets and companies while at the same time that it is benefiting consumers. Executives, managers and leaders should strive for entrepreneurial greatness and innovation, not to just determine preference among existing options. Marketing is not the art of selling products, as Kodak thought; smart marketing is about providing a company’s customer base value satisfaction. This would allow the company to remain relevant to their customer’s needs. In an age in which the consumer is in charge, the marketing strategy shall not be from the perspective of products and services alone.

This report is based upon the book The New Small: How a New breed of Businesses Is Harnessing the Power of Emerging Technologies, written by Phil Simon. The book was published by Motion Publishing and is copyrighted 2011 by Phil Simon. Phil Simon is the author of the Why New Systems Fail and The Next Wave of Technologies along with a few other management books. Phil consults companies on how to optimize their use of technology. While not consulting, Phil speaks about emerging trends and technologies. His contributions have also been featured in several technology-oriented media outlets. Simon currently resides in Las Vegas, Nevada.

Reliance Industries shut all of its 1,432 petrol pumps in the country after sales dropped to almost nil as it could not match the subsidized price offered by public sector competition. The company owned less than three per cent of the 36,936 petrol pumps in the country. Of the total retail outlets, state run Indian Oil, Bharat Petroleum and Hindustan Petroleum own 34,304 pumps, while the remaining belong to private sector Essar Oil and Shell India.

Authors discussed the pattern of failing big businesses and losing to new entrants. They observed trends specific in computer technology. Authors raised the question, why leading companies are working to satisfy the needs of current customers and ignore the future customers? Bureaucracy , old management, poor planning and short term vision can responsible for the industry behavior. However, authors explain the paradox of too much concentration on current customers and their need is also a major reason leading companies neglect future customers.