What Killed off the Giant Brands? – Part 2
Posted On 2019-01-29
The history always repeating itself!
“There are only patterns, patterns on top of patterns, patterns that
affect other patterns. Patterns hidden by patterns. Patterns within
If you watch close, history does nothing but repeat itself.” ( Chuck Palahniuk -Survivor)
As promised, the second part of What Killed off the Giant Brands ? is
here , Hope you will enjoy & your kind comments and thoughts will
be greatly appreciated.
- Dell: is an American privately owned multinational
computer technology company that develops, sells, repairs, and supports
computers and related products and services. Dell had a different idea,
“Cut out the middleman and sell directly to consumers”. When the
Internet arrived, Dell took off and competitors got whiplash trying to
keep up with its skyrocketing sales.For more than a decade, it has been
trying to break into almost every major electronics market, but it has
less than nothing to show for it. With the PC market rapidly changing,
Dell is now in danger of falling far behind. Dell stopped selling its
last tablet & has finally discontinued sales of its Venue and Venue
Pro Windows Phones. This is especially sad news because a little more
than a year ago, Dell spent millions to move 25,000 of its employees
from BlackBerry to the Venue Pro. So what happened?
- No adaptation to the changes, Dell only speaks PC!
- MP3 Project failed: Dell attempted to compete with the iPod
beginning in 2003 with its Digital Jukebox and Pocket DJ devices, but
failed to capture more than 3 percent of the market by 2006, when it
decided to call it quits.
- Release, fail, repeat! They didn’t learn from their mistakes!
- BlackBerry:There was a time when the primary mode
of business communication was BBM & it was the phone to have in the
mid- to late-2000’s (in 2007 it had more than half of the market-share
of phones in the US.) The very first device to carry the BlackBerry name
was the BlackBerry 850, an email pager, released January 19, 1999.The
primary competitors of the BlackBerry are smartphones running Android
and the Apple iPhone smartphone. BlackBerry has struggled to compete
against both and its market share has plunged since 2011.BlackBerry’s
global user base (meaning active accounts) has declined dramatically
since its peak of 80 million in June 2012, dropping to 46 million users
in September 2014 & also during the report of its third quarter 2015
results on December 18, 2015, the company said that approximately
700,000 handsets had been sold, down from 1.9 million in the same
quarter in 2014, and down from 800,000 in Q2 of 2015. So the fatal
- Being Super Overconfidence and ignoring everything & everyone!
- Lack of innovation, New products were so boring!
- Enterprise interest was falling & they didn’t get it!
- BB App World was a ghost town & developers hated making BlackBerry apps.
- Pick the fight that you can win,They got head to head with Apple
for no reason and lost their focus. below is BB TVC and Apple
- MySpace: Was a social networking website offering
an interactive, user-submitted network of friends, personal profiles,
blogs, groups, photos, music, and videos. From 2005 to 2008, Myspace was
the largest social networking site in the world, and in June 2006
surpassed Google as the most visited website in the United States. In
April 2008, Myspace was overtaken by Facebook in the number of unique
worldwide visitors, and was surpassed in the number of unique U.S.
visitors in May 2009.As of May 2014, Myspace was ranked 982 by total web
traffic, and 392 in the United States. As of April 2016 the ranks were
1985 and 1747,correspondingly. So what went wrong?
- Facebook saw what Myspace didn’t! People needed to connect on more than one level not just random bands trying to get signed.
- MySpace, like everyone else in 2004, wasn’t sure what would make a social network click.
- Sudden Management Shifts Suggest Desperation.
- They decided to act as a middle man by adding functionality of
allowing users to push photos, status updates, links and videos out to a
Facebook profile or page, and also Twitter. This is basically Myspace
undermining its own relevance, admitting that its social features are
worthless and that its competitors are superior.
- Myspace became a Den of Ill-Repute! For years, the site has been
nearly synonymous with sex crimes, including pedophilia and rape. For
example Myspace evicted some 90,000 sex offenders from its site.
” They Knew that the END WAS NEAR!!! “
Here is one graph showing Myspace trend:
Now here is that same time period with Facebook included:
- YAHOO! : In January 1994, Yang and Filo were
electrical engineering graduate students at Stanford University when
they created a website named “Jerry and David’s guide to the World Wide
Web”. The site was a directory of other websites, organized in a
hierarchy, as opposed to a searchable index of pages. In March 1994,
“Jerry and David’s Guide to the World Wide Web” was renamed “Yahoo! The
“yahoo.com” domain was created on January 18, 1995. Yahoo grew rapidly
throughout the 1990s & by 1998, Yahoo was the most popular starting
point for web users. Yahoo stocks closing at an all-time high of $118.75
a share on January 3, 2000. However, after the dot-com bubble burst, it
reached a post-bubble low of $8.11 on September 26, 2001. So what was
Yahoo’s biggest mistakes?
- Not buying or licensing Google’s technology in 1998, in 1998,
Google’s two young co-founders approached Yahoo when they were making
the rounds for backing in Silicon Valley. They opened the door to an
investment, licensing deal or an outright acquisition of the duo’s
technology. But Yahoo wasn’t interested.
- Paying billions for Broadcast.com in 1999,While Yahoo’s 1999
acquisition of Broadcast.com for $5.7bn didn’t kill Yahoo, it is
arguably one of the worst-timed acquisitions in tech M&A history,
and one has to wonder how the ill-fated acquisition impacted Yahoo in
- Not buying Google in 2002, Yahoo had the opportunity to purchase
Google for $5bn in 2002. It was the last chance to acquire Google.
- Hiring Terry Semel as CEO!!! Yahoo’s second CEO, Terry Semel, is
the worst tech CEO in history. He received $489.6 million in total
compensation during his six year run at the company.This jaw-dropping
reminder of how much money Semel was paid to run Yahoo into the ground.
He is among 25 top paid executives of public companies over the last
- Not buying Facebook ! Yahoo was nearly able to acquire the popular
social network in 2006 for $1bn but due to a faltering stock price,
Yahoo lowered its offer to $850m, allowing Facebook CEO Mark Zuckerberg
to walk away from the deal.
- Rejecting Microsoft’s buyout offer! In 2008, the Redmond software
giant, eager to compete with Google, was willing to pay $44bn for Yahoo,
but thanks to what many considered gross incompetence, Yahoo’s board
rejected the offer.
- Failure to buy DoubleClick! a few months before Google bought
DoubleClick for $3 billion, Terry had an agreement to buy it for $2.2
billion. For whatever reason, however, Terry failed to sign on the
” Terry Semel & Yahoo founders “
This is the end of part two!