One mindset to avoid if you don’t want to fail
What can we learn from the failures of large corporations like Kodak and the rise of disruptors like Netflix and Google?
In 2000, Netflix wanted to work with America’s largest movie rental company Blockbuster but was laughed out of their office.
Now, Blockbuster has gone bankrupt while Netflix is worth 10 times more.
The first digital camera was invented by Kodak’s engineer Steve Sasson, but they did not want to invest further in it, causing Kodak to become nearly obsolete.
In 1997, big guy search engine Excite turned down an offer to buy Google for less than $1 million.
Now, Excite is bankrupt while Google is worth more than $200 billion.
Why do large corporations like these miss such obvious opportunities?
Kodak did not want to sell digital cameras because they thought it would compete with their film cameras and affect their revenue. They failed to see the convenience and simplicity of digital photography.
Blockbuster did not want to work with Netflix because they thought they could earn more money by charging late fees on unreturned DVDs, and they felt that Netflix’s business model of charging monthly fees would not be financially viable in the long run.
They failed to understand that Netflix’s success was built on creating trust with subscribers.
Despite Google having more superior search technology, Excite did not want to acquire them because they thought they could better monetise their search engine if web users stayed longer on their site. Having better search technology would defeat that purpose because if people could find what they want easily, they would leave.
With worse search results, users would then need to spend more time on the portal.
They failed to recognise the importance of creating value and making lives easier for users.
What do these failed companies have in common?
They focused only on the visible results of growth.
Think about it — when you plant a tree, 40% of the initial growth is the development of roots (or foundation) — which is the growth that most people do not see.
When you are starting something, it’s easy to give up after trying for a while because you don’t see the budding seedling when the crucial growth is actually happening beneath the ground.
Growing roots is vital if your vision is to grow a tree.
If you just want to enjoy the fruit of labour without the pains of growth, you are better off purchasing it from a supermarket.
Edited by Candice Neo
Photos and illustrations by Mehthesheep Academy unless otherwise stated.
