WHY BUSINESSES FAIL

1. Lack of planning – no business objectives set

2. Insufficient funds
3. Fierce competition
4. Poor management
5. Failed to adapt to changes in the market
6. Conflicts between internal stakeholders
7. Lack of market demand of their products
8. Legal issues
9. No proper market research before entering the market
10. Expanding to fast

Real life Examples:

1. Blockbuster: Once a dominant force in the video rental
industry, Blockbuster failed to adapt to the digital age and
the rise of streaming services like Netflix. It filed for
bankruptcy in 2010.
2. Toys "R" Us: A beloved toy retailer, Toys "R" Us struggled to
compete with online retailers like Amazon and Walmart. It
filed for bankruptcy in 2017 and closed its stores soon after.
3. Kodak: Despite being a pioneer in the photography industry,
Kodak failed to innovate and adapt to the shift from film to
digital photography. It filed for bankruptcy in 2012.
4. Kingfisher Airlines: The premium and world-class airline was
based in Bangalore and founded by the infamous Vijay
Mallya. The airline carried out around 400 flights every day.
However, the brand couldn’t keep up with customer
satisfaction. Lack of deputation, misbehaviour and lack of
attention to the customer. Eventually, the increasing
complaints from the customers and lack of attention from
the owner, kingfisher airlines got completely shut down.
5. Nokia: There was a time when Nokia was a market leader in
the phone industry. Every second person had a Nokia with
them. However, with time Nokia started experiencing its
rapid downfall. The primary reason for the doom was not
shifting to android as well as overestimating the brand value.
Sticking to the same software, made it easier for other
brands to take over.