Companies that failed because they stuck with tradition

No one wants to sit on the brink of extinction.

Many companies live and die by their ability to innovate. The more innovative they become, the better they perform. Companies stuck on tradition often find themselves operating on the brink of extinction as new companies overtake them with a flash of creativity and modern technology.

But what is tradition anyway?

Ultimately, it’s following in the footsteps of those who came before us. It’s the loss of curiosity we possessed as kids. It’s ignorance.

I’ve listed a few companies that epically crashed because their competitors weren’t scared of trying something new.

Most millennials and baby boomers remember Blockbuster, the famous video rental company loved far and wide.

Contrary to popular belief, Blockbuster didn’t die as a direct result of Netflix. Blockbuster had its own struggles. For one, the company faced public scrutiny when Blockbuster received $800 million in late fees from customers — just in time for the 2008 financial crisis.

In contrast to popular opinion, Blockbuster wasn’t out of touch with technology. The company accepted that the internet could be key to a fruitful future. To eclipse Netflix, the company retained its storefronts and built a digital platform, allowing customers to enjoy movies online and offline. For a momentous period of time, Blockbuster’s online platform grew faster than Netflix.

The truth is that Blockbuster’s efforts were too little, too late. The company also faced several challenges pertaining to technology and infrastructure, preventing it from achieving mass consumer adoption. Blockbuster simply didn’t move fast enough — and the recession catalyzed a perfect storm — one that ultimately led Blockbuster to bankruptcy.

The common trait we see in mature, successful companies like Nokia is that success can ironically breed an orthodox mindset and hubris — leading to poor strategic decisions.

While its competitors were tackling fresh ideas, Nokia was risk-averse to an extreme. The company was ridiculously pre-occupied with its consumers’…

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