Sound business failures
August 11, 2012 § Leave a comment
Business is not only associated with success and money and deals and stuff. We know lots of interesting and sound examples of huge awesome companies with a successful destiny and the enormous income. But sometimes, this or that company becomes famous not because of it’s good business strategies, but because of the worst failures ever.
For example, advertising business. Seems to be stable and acute. Not at all. Once, the General Motors company, advertising the new offroadster made it possible for the visitors of the official site to edit the advertising videos and mottoes. Then, these vids and slogans have been accidentally included into the official advertising campaign and all the customers could see the slogans like: “New GM Jeep: yesterday’s technologies today” and “The world will become better without this car”.
Another failure belongs to the Mass Media. Thus, the New York Times, having decided to cut the expenses, were involved in the program of the secondary document usage. New circulations of papers were to be distributed wrapped into old office documents. So, one day newspaper salesmen in Wooster, Connecticut got a sudden present: New York Times papers wrapped into the docs with personal data and pin-codes of 240 thousand subscribers.
Also, there is a couple of situation in the sphere of sales. For example, the Guidant medical company got a release of new cardiostimulators. Having sold about 50 thousand units, they found out that each of the device had a short circuit. By the way, at the moment 38 600 dangerous stimulators had already been implanted to different patients. The company continued to pretend nothing was wrong, saying something like: “If you have a beep-sound in your stimulator, it’s OK and you should just visit a doctor”. And they forgot to mention that this sound means an immediate heart attack, of course. Guardiant became a bankrupt only after 45 short circuits, a couple of deaths and a huge number of heart attacks caused by defective cardiostimulators.
So, guys, business is really dangerous, I should say. Some of the situations are funny, like that “best” campaign of GM and that case with Steve Wynn who spoiled the Picasso painting costing 139 mln. dollars (btw, he didn’t manage to sell it and spent about 90 thousand dollars to restore it). Other situation involve people’s lives. Don’t be distracted while making a big business, this is my advice;)
By the way, do you know any interesting examples of bad business strategies? Don’t be shy, share with me!