Today we will discuss that why Blackberry, Nokia, Yahoo failed? These were the brand name at their time then what happened suddenly that they failed and could not come back. We will discuss it one by one.
Fall of Yahoo
Let’s talk about Yahoo first. A technology company that became one of the largest and most important in Silicon Valley, competing hand-in-hand with giants like Google. But that little by little has been in decline to the cause of a checkered chain of errors.
Yahoo was born in the boom of the web pages of the 90s. The internet world was beginning to reach every home in the world and all the companies with a dotcom domain seemed to have much more credibility.
Just because they were online at that time, there were no search engines yet. And you needed to know the full address to be able to access the different pages.
Classified by topic thus, creating a guide to their favorite sites on the internet they never started this project with the intention of creating a great corporation.
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But it was something really useful for the time so their site quickly became very popular. The first name they gave to its creation was the daughter of jerry and dave to the World Wide Web.
But by 1994 when they realized the potential of their portal and that it could become something commercial.
They decided to change its name to Yahoo during that year, the directory already exceeded no more and no less than 100,000 daily visits immediately.
They made a public offer and in 1996 the birth and Yahoo growth coincided with the rise of the technology and internet sector or what is known as the dot-com bubble with which all the shares of companies like yahoo rose like Wildfire.
Meanwhile, another interesting startup was brewing in the heart of Silicon Valley. Young students from Stanford University began to develop a search engine with the intention of sorting and classifying a large amount of information and pages.
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Websites that existed on the net developed an incredible web algorithm called Page Rank that greatly improved search effectiveness and better classified the results.
These two engineers baptized their new product as backup and as they needed financing and yahoo was the leader in the sector of web search at that time.
They turned to this large company to offer them their yahoo algorithm that considered that the search engine was no better than the one they used themselves.
Yahoo was not at all interested in financing that small project. But they were quite wrong. Soon that search engine would be renamed google and that fact means it would make the first big mistake in its history as a company.
The value of the shares and the company itself would not stop rising and that was partly due to what the internet was experiencing at that time. Investors were crazy to participate in this new economy.
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That was brewing around the web world and they began to speculate excessively since they trusted a lot in its great potential.
Although like any bubble sooner or later it had to explode all those companies linked to the web world and to that new economy.
They suffered a great decline in the value of the shares. At the beginning of the century, most disappeared or stopped trading but some others such as Yahoo or Google survived the storm. But not without suffering a sharp decline in their value.
Yahoo shares fell from $ 118 to $ 4.6. But it was still the most visited website on the internet and soon began to recover and rise again in value. However, although the company began to see outbreaks.
After that crisis and adjustment, already making mistakes, which indirectly caused Google to gain more and more strength by 2005. Its growth knew that the value of its shares was becoming totally static.
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Suddenly that small company called Google that years ago had offered its technology had been chosen as the leader in the search engine sector.
In addition to reaping great success with all its new products such as Google Maps, Gmail, or Google document, also acquiring the successful online video network (Youtube) in 2006.
Yahoo for its part could not say the same as he tried not to be left behind by offering more and more services but with none of them, he achieved notable leadership. He tried to acquire Facebook in 2006 for a billion dollars.
When it was still a modest social network offer that was declined by Mark Zuckerberg. Another well-known acquisition was Tumblr in 2013, a photography social network that promised a lot at the time. But it was not enough to compete with such a giant named Google.
Fall of Blackberry
Now let’s talk about the Blackberry case. Blackberry was born in Canada in the year 1984. But it was not until the year 1999 when it would launch its first mobile terminal. The Blackberry-850 put in the hands of consumers with totally innovative features.
It was a full QWERTY keyboard at the time since the other devices worked with numeric keypads. It slowed down writing, and it also had a push email system which allowed it to receive and send emails instantly.
And the screens of the first terminals of the brand were too small to read emails, so in 2000 the Blackberry-957 appeared to fix it.
It was already beginning to intuit the future Blackberrys that so many users would captivate, although today these features do not seem like anything from another world.
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At that time, the company ‘RIM’ became a pioneer in the mobile sector and blackberry became an indispensable work tool for busy wall street (Entrepreneurs and Brokers).
Who needed to be constantly connected and alert to new emails that they received precisely because of these novel features. Blackberry became very popular in the corporate sector. Any A self-respecting entrepreneur had one in his pocket.
It was not only a work tool but it had also become a symbol of social status. The company continued to grow at an unstoppable rate with an incredible global expansion for several years.
It was improving the device with each new model becoming named by the re Fortune view as the fastest-growing company in the world.
In 2005 they launched one of the first internet-based instant chats allowing owners of blackberry among themselves without paying the additional cost for sending a text message.
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This fact incentivized new users to buy a company mobile phone to be able to talk with their friends. The growth was astronomical of up to 84 percent. In three years influential people like Barack Obama started using it.
For the publicity stunt, they offer Blackberry free of cost to the Federal Government of the United States and the Department of Defense. The company began to gain market share among the general public.
Its mobiles were no longer aimed only at men. In black and government agencies, they began to be given more personal use among more domestic consumers.
The RIM company was experiencing one of its best moments but soon the golden years of blackberry would come to an end. In 2007, Apple incredibly ahead of market trends In the mobile telephony sector.
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Its iPhone was released, the first device with a touch screen that also worked with an operating system that allowed the download of mobile applications. It was incredibly multiplying its functionalities and with a friendly interface that was very easy to use.
At that time Blackberry even didn’t bother to take any action. The iPhone was the terminal with some characteristics aimed at a young audience, a target that they (Blackberry) did not work on.
However, the iPhone turned out to be a resounding success from the first moment of its launch and that was the beginning of the end for blackberry. It turned out that the target audience for iPhone was much broader than expected.
In blackberry people of all ages began to acquire iPhone not only the youngest. So Apple was already acquiring a large market share of the general consumer.
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But worst of all is that the business sector began to feel attracted by the incredible interface of the iPhone and its infinite possibilities and Blackberry was losing market share in that sector as well.
However, the company continued to rely on that small fraction that was not yet ready to write with touch screens and still preferred the full keyboard.
Fall of Nokia.
Who has not had a Nokia in their hands? those small and resistant mobiles that you could drop from a third floor and they continued to work also in their time. They dominated the entire mobile communication market.
But if we look around almost nobody already has one of those old mobiles that happened to this telephony giant to fall from the top. The more interesting is still alive today. Nokia was created on May 12, 1865, by Freddy in Finland.
They started as a pulp mill and several decades later it would become involved in the manufacture of cables Until fully entering the telecommunications sector. The company had some golden years in which it led its industry by selling the first mobile phones.
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But the security of its success would end up taking its toll. Nokia made the mistake of stopping innovating and continuing to trust what took him to the top for years.
They only made small changes to the appearance of phones while other competitors pre great innovations were stopping many companies were developing mobile video games for which Nokia phones were not prepared with the numeric keypad.
And the small screens made it difficult to interact with the games and users were frustrated by this. in addition, the rise of the internet was driving the creation of content difficult to consume on Nokia mobiles.
Its competitors were adapting and starting to make bigger screens but Nokia seemed to ignore them. The company continued to maintain its market share and these signals did not seem threatening enough at least until an innovative company revolutionized again the industry.
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In 2007 apple would launch its iPhone phone that was the first big blow for Nokia an intuitive phone lacking a keyboard and appropriate to consume much more attractive content than other phones.
But the segment of people who could not afford an iPhone was also starting to be covered in 2005. When Google acquired Android and in 2008 HTC launches the first mobile phone with its software.
Nokia’s market share dropped from more than 50% in 2007 to just 3% in 2012 due to having a lack of focus so much. The devices did not have their own software or services that could cover their losses.
After several unsuccessful attempts to recover what had been, Nokia-Microsoft offers an alliance both companies had arrived late to the new smartphone revolution and believed that they supported each other.
They could compete with the leaders. Also, Nokia thought that with windows phones it could differentiate itself from the competition. The situation in Nokia was being so bad that in 2013 Microsoft was forced to buy it.
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The company created by bill gates did not want to allow it, its only opportunity to boost its windows phone died and they needed to take direct control but these new phones were already too late.
Mobile phones with iOS and android were much more attractive options than windows phones. On the other hand, Microsoft wanted to beat the iPhone and Android phones for the company, it was unthinkable to make its system less efficient.
After a few years of trying to understand each other. Microsoft would get rid of Nokia by selling. Nokia would be bought by HM of global in 2016 that had very different plans from those that Microsoft intended Nokia mobiles.
They were not dead. They just needed a good execution to return to the market for this. They would have to clean up their image-making people forget the past and their failure to join Microsoft.
The company allied with google by incorporating the android system into their phones. The new Nokia strategy aimed to recover what made their phones so special. They were adapting to the new era.
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In which Nokia created smartphones with large touch screens but with a different approach from the rest.
Most manufacturers focused on making better-designed devices more beautiful and with a premium appearance at the cost of their usability.
Whereas Nokia would do the opposite. New mobiles focused on being practical and making the most of their utility.
The company manufactured devices with great resistance shock, increasing the durability of the battery, the number of ports, etc.
But it was too late. They updated themselves really late. Other mobile brands became the champions at that time and it was hard to defeat them.
This is all about “Why Blackberry, Nokia, Yahoo failed ”. I always say just keep believing in yourself. If you have any doubt, leave a query in the comment box.