Innovation or failure!

Innovation or failure!

26 May, 2020 por Usabit

Those who study or at least pay attention to the changes in the market can easily see that competitiveness has been increasing since always, but mainly in the last decades. Companies that once managed to reach the top did not have to do much to keep up, and companies that brought new things quickly gained focus and success.
But in recent years innovating is no longer a differential. In an extremely competitive market, those who do not bring new solutions and differentiated thinking do not stay the same, but stay behind.
To illustrate this point and make it even more obvious, let’s take a look at 4 companies, formerly market leaders, who lagged behind by not innovating:
A classic example of the digital age is the once very popular social network My Space. Even before Facebook existed, MySpace broke standards by creating a social environment where people could feel connected to others around the world via the internet. However, very popular and practically the only giant of its kind on the market, the platform stagnated.
Some users already complained about some functions that the platform did not have and some errors that needed to be corrected but it seems that it did not make much difference. So when facebook came on the scene shortly afterwards, with differentiated functionality, attention to usability and a great investment in being always innovating and up to date, it did not take much for MySpace to be left behind. It was sold shortly afterwards to a large company but it disappeared and facebook continued to grow, reaching $ 400 billion and being one of the largest online platforms today.
Few people around the world have never heard of or even used the Blockbuster video store. Perhaps this is one of the most commented cases in relation to innovation. Who does not remember the time when it was necessary to leave the house and go to a movie store if they wanted to watch something that was not on TV.
Well, that era lagged behind the arrival of streaming platforms and online movie sales and leases, and companies that did not know how to adapt were left behind. And nobody was immune to it, not even the industry giant, Blockbuster.
And the worst, which many do not know, is that the big company got a chance to buy the current market leader Netflix (which was then a dvds delivery company) in 2000 but let that opportunity pass. In 2013 the company officially went bankrupt.
Another successful company and for a while dream of consuming lots of people who went through this was the Blackberry. During its glory years, the brand had its products organically embedded in films and series, was used by consumers of class A and was reference in the market. The company had more than 50% of the mobile phone market in the United States in 2007
But with the launch of the first IPhone in June 2007, there was a revolution in the smartphone market. The Blackberry chose to ignore the innovations that were being brought to the market, such as the touch-screen, and continue doing what it always did with confidence that would be enough to keep you on top, especially in the business market.
But Apple went on to dominate the market of physical persons and to invade the territory of the old dominant with BYOD (Bring Your Own Device, bring your own device). The market is still changing and Blackberry has lagged behind, losing much of its market share. The company went bankrupt and today tries to slowly redefine itself with Android operating system devices.
In the 1970s, Kodak came to own 80% of the camera sales and 90% of photographic films, but ended up falling into the error of lack of innovation. To this day, few have not heard or have been Kodak customers.
It’s sad to think she dug her pit in a sense. In the 70s Kodak itself launched the digital camera, at the time, innovation was not a problem for them, and they were one of the market leaders in that area. But fearing market cannibalism in relation to the sale of films, they did not invest more in the evolution or even in the promotion of this technology. When the market evolved on its own, putting digital photography in focus, it even tried to keep up with it, but it was late and it ended up being behind. They went bankrupt in 2012 and may even be trying to get back to fame but with the ever difficult photography market, they are unlikely to reach their glory days again.

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