Thursday, August 13, 2015

15 Worst Business Decisions Ever

From corporate marketing wars that fail to compromising on liquor ingredients and paying the price, we count 15 times companies have been awful decisions for greed, ignorance or desperation:

15 - Star Wars

(DON'T SAY TITLES). It was 1977, Star Wars hadn't even released when 20th Century Fox did the dumbest thing ever - they handed all merchandising rights to George Lucas. In return all they got was a measly $20,000 dollars, but George became the head of a 3billion dollar plus company with reach all over the globe, its profits continuing to grow with each passing day . Fox had absolutely no idea what Star Wars would become, and for this blunder they missed out on claiming one of the biggest media franchise trademarks ever.

14 - Cosby Show

Before The Cosby Show passed into the hands of NBC, becoming a huge hit right from the first season, ABC passed on their chance to get a slice of the pie. Cosby made a pitch to ABC for the show, but they wouldn't offer him a commitment without a script or pilot ready, so he turned to NBC where it catapulted from third on the Nielson ratings to 1st for 5 more entire seasons . It went on to become the biggest hit of the 180s and almost single-handedly revived the sitcom genre.

13 - E. T

1981, the blockbuster hit E. T the Extra Terrestrial - Steven Spielberg approached Mars the confectionery company to feature M&Ms as a small plot device in the film . The chief executives at Mars declined outright and the producers behind E. T were forced to go with their second choice: Hershey and their Reese's Pieces . When the film was released, Reese's Pieces were having dire sales but then E. T came along and sales of the candy triples with re-orders coming in as many as 10 times a day for over two weeks. Mars, pissed at the missed opportunity, heavily implied they'd never even received an offer.

12 - Kodak

We're in the age of rapidly advancing technology with the first digital cameras only appearing in the early 90s. But 15 years earlier in 1975, Kodak made the world's first ever digital camera with a patent ready for mass-production - but they did nothing, and so let their competitors invent it first. The reason? They didn't want to destroy the film industry and subsequently end their own company, but had they produced this revolution for mass market, you might've ended up with a Kodak brand smartphone . Instead, they went bankrupt in 2012 and fell into obscurity.

11 - Schlitz Beer

Back in the 70s, Shlitz was one of the biggest beer manufacturing companies in all of America only behind Budweiser . Then they made a fatal decision - to cheap the ingredients in order to produce beer faster, which, for a while, worked quite well. But then people began to notice that the beer would form floaties in the bottom which congealed into a thick mucus - and Shiltz didn't recall them, even after realizing. Eventually they had to cave in, but not after 10 million cans had been shipped, crippling their finances and ending their juggernaut company not even 10 years later.

10 - Google

It was in the 90s that search engines on the internet were few and far between - you had Yahoo, Excite and Lycos - myself I used Web crawler before it got bombarded with ads and paid links when Info Space took over. The original owners of Web crawler called Excite were actually offered all of Google for only a million dollars, but Excite declined - to pour further salt into the wound, Google lowered their offer to $750,000 but still not interested. Not even 10 years later, Google went public and today they're earning 60 billion dollars annually . Excite ended up getting merged with Ask. com in 2004.

9 - Oil

1859, back when shovels and picks were the tool of choice to dig up oil - then along came Edwin Drake and his uncle who invented the first ever oil-drilling apparatus. When Drake approached some salt-well drillers with his machine, they laughed and called him crazy. Very soon after, diggers realized how much of a goldmine it was - they rushed in and became overnight millionaires, although poor Drake forgot to patent the machine but luckily the state of Pennsylvania and oil barons paid him to express their gratitude.

8 - Telephone

Western Union, a big name in the communications industry during the late 1800s with the president infamously scoffing at the idea of a telephone . For $100,000 he could've bought a patent that changed the world, but instead he wrote a letter calling the invention an electrical toy with no commercial possibilities . Two years later, the president of Western Union realized his giant mistake, so spiteful that he employed Thomas Edison to outdo it- which never really happened.

7 - Microsoft Bob

Back before Windows 95, we had Windows 3. 1 and this infamous piece of software known as Microsoft Bob . It was like Clippie from Microsoft Office but 10x more insulting - it displayed software icons as objects inside a house and was the software responsible for the text font Comic Sans. It might've been decent if it hadn't come out the same year as Windows 95, which incorporated an easy-to-use interface without the silly dumbed-down experience.

6 - Apple

There was a time when the corporate giant known as Apple worked in a garage, but when they went to Atari to sell their revolutionary personal computers, they said no . Steve Jobs and Steve Wozniak the founders of Apple even said, hey, it's built from your parts, and you can have the computer justlet us work for you - but still the answer was no. Apple now has a market value in the 100s of billions of dollars, whereas Atari pretty much faded into obscurity.

5 - Beatles


962, a time before the Beatles were celebrities - they auditioned at Decca Records in London and the executive of talent rejected their performance. He said to his manager, groups are out and four-piece groups with guitars are finished. Unfortunately for him, over 2 billion Beatles albums sold all over the world in Beatlemania.

4 - New Coke

It's hard to imagine that Coke has been around for over a hundred years, and it was hard to foresee that when the producers of Coca-Cola introduced a new formula under the brand of New Coke, the backlash would be intense . But that's exactly what happened - despite New Coke tasting fine, the emotional attachment built over a hundred years from a consistent brand was too deep, and customers exploded with fury. Within 3 months, New Coke was gone and Coke Classic returned to enormously high sales numbers thanks to all that controversy.

3 - Blockbuster

A more recent one, the year 2000 when video rental stores were booming, Netflix offered itself to help Blockbuster sell their brand online. Blockbuster did NOT accept their offer and instead had a terrible 10 years while internet movies and tv shows became a thing, eventually filing for bankruptcy in 2010. They could've bought Netflix for $50 million and instead, their stubbornness made them crumble into nothing.

2 - M*A*S*H

1972, M*A*S*H became a surprise hit for 20th Century Fox, but then a couple of big stars dropped out after a few seasons and Fox panicked. Foreseeing the show wouldn't have long to live, they decided to sell rights for old seasons to various local TV stations, earning $25 million dollars. But then 4 years later, a thing Fox thought extremely unlikely happened - the show was still massively popular, each TV station grossed over a million dollars per aired episode outof 168 and Fox got nothing.

1 - Wal-Mart

A story about one of the few times when marketing fails and customer support wins- a war between K-Mart and Wal-Mart in the 1980s. When both companies decided to duke it out, K-Mart launched an all-out publicity campaign to raise public awareness of their store and Wal-Mart, without the funds to beat them, decided to focus on improving stocked shelf efficiency and immediate checkouts. Wal-Mart obliterated K-Marts sales in the U. S simply from good customer service and K-Mart had been struggling to keep up ever since.

Source: https://www.youtube.com/watch?v=M7SqQnKuZOQ
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