We often have the image of the big boss as a visionary in a suit, capable of anticipating trends before anyone else. However, economic history is littered with the corpses of multinationals which perished not from lack of means, but from pure obstinacy, arrogance or total disconnection from reality.
Sometimes the difference between a stroke of genius and commercial suicide lies in a single signature. A look back at these decisions so absurd that they are today taught in business schools as the perfect examples of “what you absolutely should not do”.
1. Blockbuster: the “No” at $50 million
It is arguably the most famous sprinkler in history. But, in the year 2000, a small, struggling startup named Netflix offered John Antioco, the CEO of Blockbuster (the king of DVD rental), to buy the company for $50 million.
- The error: Antioco literally laughed in the face of the Netflix founders, deeming their rental model by mail “too niche”.
- The result: Blockbuster filed for bankruptcy in 2010. Today, Netflix weighs approximately 250 billion dollars. Blockbuster is nothing more than a distant nostalgic memory (and only one last store opened in Oregon).
2. Kodak: the inventor who was afraid of his invention
Kodak did not miss the digital shift due to lack of technology. On the contrary: it was an engineer from Kodak, Steven Sasson, who invented the first digital camera in 1975.
- The error: Management buried the invention for fear of cannibalizing their film sales. Their logic? “It’s photography without film, it will never work. »
- The result: By refusing to evolve to protect its immediate profits, Kodak allowed competition to take over the market it had created. Bankruptcy in 2012.
3. Yahoo: the king of missed opportunities
If we had to give a prize for the worst strategic management over twenty years, Yahoo would take the prize. The company had two golden opportunities to dominate the world, and it failed both times.
- The Google episode (2002): Yahoo refuses to buy Google for $3 billion, finding the price too high.
- The Facebook episode (2006): Yahoo offers 1 billion to buy Zuckerberg’s social network. At the last moment, Yahoo lowers its offer to 850 million. Zuckerberg slams the door.
- The result: Yahoo ended up being bought by Verizon for a fraction of its past value, while Google and Facebook rule the web.
4. Nokia and the arrogance of the leader
In the mid-2000s, Nokia owned nearly 40% of the global mobile phone market. They were untouchable. Then, in 2007, Steve Jobs released a glass rectangle called the iPhone.
- The error: Nokia looked down on the touchscreen, considering it fragile and impractical compared to their physical keyboards. They also underestimated the importance of applications, remaining clinging to their Symbian operating system, as ergonomic as an old Minitel.
- The result: A dizzying free fall. The mobile division was sold to Microsoft (another dismal failure) before disappearing from the mainstream radar for years.
Why such errors?
What do these giants have in common? Complacency.
“Success is a bad teacher. He makes smart people believe they can’t lose. » —Bill Gates
These companies all fell victim to the “innovator’s dilemma”: they were so busy milking their current cash cow that they failed to see the butcher coming with new technology. In business, the only constant is change. And as these examples prove, not deciding is often the worst decision.
