When a company’s top executives are all fins of similar background and age can hamper their ability to make right decision in light of their changing organizational environment. When competing, a company tries to make a similar product in a given market segment, then competes against incumbent products on price or features to gain share and hopefully profits. In the midst of this consumer electronics upheaval, Bang & Olufsen remained adamantly, diligently, and somewhat endearingly committed to following its own path. I was told by a member of the team that they could not find traction with internal Kodak teams…I am reminded that corporate survival is “not” manditory. Blockbuster was an American-based home movie and video game rental business which operated through video rental stores and eventually moved into online DVD-by-mail and streaming services. But since 2000, as Apple, Google, and Facebook whizzed by, it has fallen flat in every arena it entered: e-books, music, search, social networking, etc., etc. The company made it through a securities fraud scandal in the late 1930s, and seemingly came back even more powerful in the 1980s with 161 branches in 42 states and six offices in Asia and Europe. Many times it is simply because companies have been doing the same things, in the same ways, and for the same reasons for so long, that they struggle with the concept of change. And while its competitors steadily gained market share through novel and innovative approaches, Blockbuster remained defiantly steadfast in its profound reliance on a brick-and-mortar business. In November 2000, the company completed a $10.8 billion cash and stock merger with UBS AG, and by 2003 the 123-year-old Paine Webber name had disappeared, replaced by UBS Wealth Management USA. A few conclusions: Companies that fail to embrace change and reorganise themselves accordingly will, regardless of any prior success, be swept away. IBM in the mid 1980’s felt that the future would be much like the past and a result didn’t have to change much. Thanks! Microsoft have now announced the Surface tablet. Examples of Change Management Failure. A family-run business that made Michigan proud for 40 years and once one of the country’s biggest booksellers, Borders was founded in Ann Arbor in 1971 by brothers Tom and Louise Borders. With a string of high-profile bankruptcies and thousands of layoffs, the German retail sector is in upheaval as it struggles with the challenges of changing customer trends and online shopping. Steve Jobs did bring Apple back from the edge of bankruptcy and today it is one of the most valuable companies in the world, but the speed of innovation is ever-faster. While the Danish company pursued its own cult of design, others like Apple formulated a new aesthetic that took into account the graphical user interface and Moore’s law. But in making the Surface, Microsoft played it safe and chose to compete, not disrupt. Why do so many established and often well managed companies struggle with disruptive innovation? In 1975 a Kodak engineer, Steve … Unfortunately, as the world of photography moved toward online photo sharing, Kodak continued to focus on photo printing. Now, the iconic mail-order chain Neckermann, with more than 2,500 employees, filed for insolvency. The final straw was the deepening recession which caused many airlines to suffer. It’s almost certainly cheaper to let the market’s weeding-out process reveal the successful innovations, rather than to risk money on your own speculative R&D. Following this accolade, engineer Steven Sasson co-created the first modern DSLR camera in 1989. When it no longer makes sense to run a chain of physical book stores, Barnes & Noble will likely be left with its Nook business and online book sales. But the trick is to avoid absorbing and stifling what you’ve bought. Your company culture? Unable to turn the business around after such a fall, Woolworth’s announced in July 1997 it would close more than 400 five-and-dime stores in the US, with 9,200 jobs lost and a $223 million charge for discontinued operations. Many times it is simply because companies have been doing the same things, in the same ways, and for the same reasons for so long, that they struggle with the concept of change. Founded in 1880 by William Alfred Paine and Wallace G. Webber, this brokerage firm had a colorful history. Will RIM (Blackbarry) catch up? By 1991 the airline was grounded for good. Between 2008 and 2009, annual revenue plunged from $853 million to $528 million, and its stock price plummeted from $52 to $8.50. These processes typically create simplicity and order and can also become self-reinforcing and entrenched. That alone will be a difficult issue for Nokia to overcome. The company filed for Chapter 11 bankruptcy protection. Launching a business is hard to do, and ensuring its longevity is even harder.