Worst Company Disasters! | Top 6 Blunders

You are watching ColdFusion TV. Hi. Welcome to another ColdFusion video. In previous ColdFusion videos, we’ve often seen the success stories of some of the largest and most influential companies. But what about the other side? What about the blunders? missed opportunities, and utter disasters that in turn, brought some companies to ruin. Well today, you’re in luck, because here are six of such stories. let’s get straight into it. Number six: Kodak had the first digital camera back in 1977. Whenever technology changes the landscape of an industry, there are some businesses that adapt and thrive, And others that continue to do the same old thing, until it’s too late. For Kodak, who fell behind, due to the advent of the digital camera, the situation was a little different. Kodak actually patented the first digital camera back in 1977. It was one that used magnetic cassette to store images of about 100 kilobytes. However, Over the coming years, Kodak made so much money off of film, That they let the new technology gather dust, not realizing its potential. The company continued to focus on traditional film cameras Even it was clear that the market was moving towards digital. When Kodak finally gone to the digital market, They were selling cameras at a loss and still couldn’t make up enough sales to catch up to those competitors, which have seen the potential of digital cameras early on. Currently, Kodak is losing over two hundred million dollars a year. The lesson learned: In the world of business, always keep an eye on the market, and be responsive to future trends. if not, it cost you everything. Number five: Excite could have bought Google for less than one million dollars. The year is 1999, and Excite was the number two search engine, behind Yahoo. Google back then was a nobody. The new kid on the block. It was in this setting, back in ’99, That Larry Page, offered to sell Google to Excite for $750,000 according to Excite’s CEO at the time, George Bell, The $750,000 deal was 1% of Excite’s worth, So financing wasn’t an issue. The hiccup came when Larry insisted That if the sale went ahead, Excite was to replace all of its search technology with Google’s. George of Excite, thought that this was too much, and refused the offer. Excite was eventually bought by Ask Jeeves (now Ask.com) in 2004. At the time, Ask had less than 2% search market share. Google, currently now known as Alphabet processes a billion search results everyday. They currently have around $147 billion in assets, which is more than 196,000 times what Excite would have payed for them. Ouch. Number four: Blockbuster Video turns down the opportunity to buy Netflix. The mid-80s to late 90s, where when VHS was king. The problem back then, was that VHS tapes would cost upwards of $97 per movie. For this reason, video rental stores, like Blockbuster came in to fill in that gap. They were the perfect solution, and became a regular part of weekend plans for hundreds of millions around the globe. [Blockbuster Commercial] Eventually, online video streaming services, like Netflix, Hulu and even Putlocker destroyed the old video rental business model. Ironically, In the year 2000, Netflix proposed that it would handle Blockbuster’s online component and Blockbuster could host Netflix as an in-store component, thus eliminating the need to mail DVD’s, which was Netflix’s business model at the time. According to an interview with former Netflix CEO, Barry McCarthy Blockbuster just laughed Netflix out of their office. But, that’s not the end of their story. By 2007, Blockbuster was well on the right track. They had an internet movie component, that was steamrolling over Netflix. Netflix was struggling, and their upper management wanted to sell the company to blockbuster to save face. Blockbuster’s growth was very strong at the time, so they turned down the offer. In a strange twist later that year, there was a boardroom dispute over Blockbuster, that saw a change of CEO. The new CEO was James Keyes (formerly of Seven-Eleven) He came in with the wrong mindset, and thought that Blockbuster should be a retail business instead of an entertainment one. Because of this, He didn’t see the value of an online component. Huge mistake. Within eighteen months, The new CEO had lost Blockbuster 85% of the company’s value. And within three years, Blockbuster was filing for bankruptcy. Blockbuster went belly-up, and Netflix went on to thrive. Since then, Netflix is behind such original shows such as: House of Cards, BoJack Horseman, and Daredevil. With 83 million subscriptions worldwide, Netflix has altered the way many view the entertainment. Number three: A grade school math error cost NASA $125 million. Before the advent of Google, did you ever get frustrated with the conversions from feet to meters? Inches to centimeters? Did you find it difficult? Well, you’re in good company. As it turns out, a similar math problem hindered some of the greatest minds in the western world. In 1999, A Mars orbiter, that Lockheed-Martin designed for NASA was lost in space due to a simple math error, in where the engineers at Lockheed used Imperial measurements while the NASA employees used metric ones. The mismatch led to the thrusters not recieving vital navigation information, which caused the 125 million dollar spacecraft to malfunction. The probe was forever lost while trying to get into orbit around Mars after a 286-day journey. There were numerous occasions where the errors should have been caught, but, it wasn’t. Number two: Nokia outright refusing to use Android. Nokia. One of the most iconic brands of the 20th century and even up to the first decade of the 21st century. The company had about 51% market share on the mobile phone industry at their peak in 2007. But now, they’re a shell of their former selves. A fond, but distant memory for many. The start of the company’s fall from grace can be attributed to one moment in 2010, when Nokia CEO Anssi Vanjoki snobbed his nose up at the idea of using Google’s Android software. You see, at the time, Nokia had their own operating system called Symbian. After the release of the iPhone in 2007, the software development team at Nokia realized that there was a threat. So they split into two. One team tried to revamp Symbian, and the other team created an entirely new operating system named MeeGo. The problem was, that the two teams were battling for resources from Nokia’s top executives. So in essence, there was an internal struggle within the company. It was so bad, that whenever Nokia was dealing with outside stakeholders, like chip manufacturers for example, there was so much squabbling within the company, that it took the better part of the year to make a decision on anything. in the tech world, that’s way too long. Competitor innovation waits for no one. The logical solution, in hindsight of course, was Android. Nokia could have used the open software platform, combine it with their in-house hardware, to quickly make up for lost time, at minimal cost. Instead, Nokia CEO at the time decided to skip on Android, calling it a short term solution likening the move to, Quote: “Pissing in your pants in winter to keep warm.” Nokia kept on working on their own software efforts, throwing $5 billion a year of R&D at the problem, but no avail. As time went on, The iPhone and Android handsets dominated the market until Nokia’s mobile division was left in the dust. not long after this, in 2013, the Nokia division brand was salvaged by Microsoft for scraps. Microsoft couldn’t make the once legendary company stay afloat either, Wasting $8 billion before killing the Nokia mobile brand. Moral of the story, Move with innovation, and don’t let your pride cloud your judgement. But wait a second, there is a twist here. Nokia, the company from Finland, is said to be returning in 2016, after signing an exclusive agreement with HMD Global. HMD Global is a new company, also based in Finland. The deal will see the creation of Nokia brand mobile phones and tablets for the next 10 years. So, I’ll see how this one plays out. Number One: Xerox, yes the printer company hand one of the greatest inventions in computing history to Apple. Imagine having one of the greatest inventions of the 20th century in your hands and giving it away because you didn’t understand what you are holding. Xerox did just that with the Xerox Alto. The Xerox Alto was an experimental computer from 1973, created at Xerox’s Research Center. The Alto was way ahead of it’s time. It was the first modern desktop PC, as we recognize them today. It had a mouse, windows, file managers, and it can copy and paste, delete and move files, It had icons, menus, graphics, and even a Local Area Network, that connected all the computers together. The idea was to mimic an office desk, but on a screen. A paperless office of the future. Absolutely revolutionary for 1973. What the Xerox Alto was demonstrating was the first Graphical User Interface, or GUI, in a desktop computer. For those of you not familiar with this time in computing technology, This is how a typical computer from the late 1970s looked and functioned. Before GUI’s, to do absolutely anything to a computer you needed to type commands in lines of text. If you mistyped anything, that was too bad. The computer would just spit out an error, saying that it didn’t understand. Pointing and clicking on a graphical object was a foreign idea. Thousands of Xerox Alto’s were built at the Research Center, but never sold. Only used heavily in Xerox’s offices and at a few universities. The Xerox upper management did not understand what they had, the managers just couldn’t see, the vision of what the computer of the future will be. But, a man named Steve Jobs did know what the future of the computer could be. And Xerox handed it straight to him. Here’s how it went down: Xerox at the time, needed a way to make their experimental technologies, like the Alto cheaper. They saw Apple pumping out their Apple II’s for a cheap price. So in 1979, they invited Steve Jobs over to their research institute, to see if they could help reduce the cost of production. The deal saw Xerox gain a million shares of Apple’s stock In exchange for Steve Jobs was getting the inside information for everything cool and revolutionary that was going on at the PARC Center. Nobody actually checked with the guys at the research center, but the Apple Business Development Team signed off the deal anyway. The following is from Larry Lester, a Xerox Research Center scientist, and an eyewitness to when Steve Jobs was handed everything. Lester: So, during that demo… uh, Steve again got very excited, he was pacing around the room and occasionally looked at the screen. He was mostly just looking and then reacting, and taking it all in and trying to process it. And uh, and one point, he said you still not showing us everything. And the meeting paused, and there was some phone calls, and okay, we gonna show you more. But, Jobs was there going: “What is going on here? You’re sitting on a goldmine!” “Why aren’t you doing something with this technology?” “You could change the world!” And, There were his buddies, who would trying to, you know arrange a negotiation of some kind. We’re tying to quiet him down [audience laughs] Don’t be so excited. But he was, he was really clear to him that we were never really gonna do anything with this. Ah, the irony was when they left, we’d still showed them like 1% of what PARC was doing. But it was enough, that it got really excited and decided that they were gonna retarget the LISA to be something like what they seen in terms of GUI, they fell in love with the mouse, and uh, that changed everything. And 7 months after that, I was working at Apple. Jobs: And, within you know, ten minutes, It was obvious to me that all computers would work like this, someday. Basically, they were copier heads, and just had no clue about, uh a computer, what it can do. And so they just grabbed the feet from the greatest victory in the computer industry. Xerox could have owned the entire computer industry today. The graphical approach to the computer appealed to the human mind because commands were now replaced with movements and objects. So, it felt natural, Typing lines of text was now a thing of the past. The ideas from the Alto would heavily influence the Apple LISA, whose technology trickles down to the Macintosh, which influenced Microsoft Windows. Both of which, were the eventual ancestors to the manner in which our phones operate today. An the sad thing is Xerox never gets mention for any of this. Anyway, that’s the end of the video. Those were 6 huge blunders by some top companies. I hoped you liked it, give it a thumbs up if you did, subscribe if you are new to this channel, and this video was a lot of work, so i would appreciate it if you’d share this video with someone who would be interested. Also, as another point, If you guys would like to suggest videos, I’ve opened up the floor on my Patreon, So, if you are a Patreon, you can take part and suggesting what the next video’s gonna be. Thanks again guys, This has been Dagogo, you have been watching ColdFusion, and I’ll see you again soon next video. Cheers and have a good one. ColdFusion. It’s new thinking. – Captions mostly done by 81wsk

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100 thoughts on “Worst Company Disasters! | Top 6 Blunders

  1. Anyone remember the Neo Geo game system??? My friend worked all summer to get one. About a month later it was broke and the company shut down. He was soooo mad😭😭😭😭

  2. The deal where Google could've been bought for cheap seems like a missed opportunity….but if that company HAD bought Google, they probably would've run it into to ground as well, therefore not gaining anything. If Google had indeed gone down that pathway, there's no guarantee that it would be the monster company that it is today. So that one seems slightly misleading.

  3. Xerox? Wasn't that a printer / paper company?
    Also it's the name of a dog i drew when i was a little kiddo.

  4. I remember the local blockbuster and radioshack, now theres a dollar store and a pet store in their places. I remember having a Nokia as well, a brick wall of a phone. Oh my word. But most of us pronounce it No•key•ah, drives me nuts how you pronounce it hahaha

  5. I miss block busters it was a time to go out with the fam and get movies and snacks it was a Mabry you cant get that from apps

  6. This clip contains loads of crap. Nokia was bankrupt by Stephen Elop which was a Microsoft plant . The same thing they did with Silicon Graphics.

  7. Well hindsight is 50/50 . ………………………………………………………………….
    The feller at 11:50 was a fairly famous Canadian Comic . At that time .

  8. Reminds me in a similar vein to the teacher that told Einstein as a boy he was too dumb to amount to anything , the film producer who dismissed Gene Kelly as dull but can "dance a little" and the record company that rejected the Beatles when they were looking to be signed to label! Just shows the world is full of idiots who make important decisions. I used to contract at Nokia and I did sense a stick-up-their-ass arrogance about their Symbian OS !

  9. Its called cycle of life , humans hav a life span so do companies , eventually the biggest & the brightest will go out , the same will happen to Apple or Microsoft as it happened to Nokia , Motorola , RIM .. blackberry .. Iconics co's like Sears …. So too to our planet , the solar system will die out eventually , the cycle of life , new replaces the old .

  10. Notable mention should be Gillette for losing £8 billion because of their “woke” advert 😂 get woke go broke

  11. Android is a horrible model for customers. It took a sea change in how consumers relate to UI manipulation to make it viable. In that department, Apple changed the landscape with the iPhone "constantly upgrade" model, shortening consumers time horizon. It also took lots of tie-in agreements with the big cell network providers of the time. They had all watched AT&T win big with their deals with apple on the early I-Phones, so they were willing to do whatever it took to be part of that when Android hit the scene, including down-selling other OS based phones, including MS phones, Blackberry, and Palm phones. Saying they should have switched to Android in my book is an amateur hour case analysis. It should be noted, however, that Nokia's big problems started long before Android even hit the scene. They had the best candybar phone design ever for texting — the 6800 and E70. At a time when Blackberry was racking up $$$ with massive blob pager-looking things, Nokia had the Blackberry killer on tap. But they failed to execute where it counted. Regardless of the capabilities of the phone, either because they didn't train the networks and IT people, or because it didn't work right, you just could not get an IT manager to pass your work emails (which, at the time, were still mostly plain text, through to your Nokia phone. They would do it with a Blackberry, a Palm, and later an iPhone, but not a Nokia E70. They also totally failed to get the phone to suppliers. You had to basically go to the ONE Nokia store in the USA (Manhattan), and even then they couldn't tell you when they'd have any in stock. The E70 was such an awesome design that if they brought it back today, rather than the junky looking rainbow turd they're calling a "retro" phone, as a call/text/think client media streamer, they could compete favorably with a lot of smart phones.

  12. FUCK OFF asshole, i disgrace, Nokia is not one of the Disasters companies out there. Nokia is in fact an awesome company and the godfarther of all phones that make fantastic innovations, phones and even smartphones today, they been around for years before apple and samsung JOIN the banwagon

  13. There is more to the blockbuster story, a huge sum of money was taken out via a one time dividend that left the company a shell of its previous self. Just my 2 cents

  14. 1973 had the computer that made wifi ideas and high speed internet wow tha fuck guys this invention have Patton on most invention now days so who ever they sold it to is a trillion air cause this is very high-tech of its time not to mention the father of apple 😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭 one mans trash is another mans treasure

  15. I've been feeling sorry for today's kids born into the digital age, but if this stuff was already happening in the early 70s when I was still a little kid myself, it seems I was also born into the digital age (of sorts), as other viewers have said re this clip, "mind blown"!

  16. those dumbest CEO are so dumb that they can destroy a brand in a second…..I wonder what will Team coock do

  17. If my Motorola razor wasn't stolen from hostel in Malaysia back in those times, I'd still be proudly using it these days.

  18. To add one more…Panasonic. Panasonic dominated early cell phones.

    For those of us old enough to remember Panasonic had been a big name in the 70s and 80's with televisions and Stereos and the advent of personal cell phones in the early 90s was just what they needed to rescue their name from obscurity as Imports at a lower cost and better quality started flooding the stereo/tv markets.

    The very first cell phones were all analog and Panasonic's name was on almost all of them!

    The engineers a Panasonic realized you could do so much more with digital. They realized you could send text and even very revolutionary… pictures! They took this to the vice president of engineering and he shot it down.

    Panasonic remained analog and got eaten alive.

  19. Missed a few.  Here are two:  1) GEnie (part of GE) was one of the first large internet service providers back in the 1980's, with about 1/3 of the market, and arguably the most user-friendly of what was available at the time.  (Compuserve was larger, but not consumer friendly)  This is before Prodigy, AOL and others.  I don't think GE ever really supported their ISP service and I never saw any speeds available beyond 4800 baud.  GE could have made many billion$ had they supported GEnie.  Their failure made room for AOL.  2) The AOL/Time Warner merger.  The two corporate boards just couldn't work with each other.  AOL had the distribution network and membership numbers, and Time Warner had the content, with over 10k owned movie titles and 10's of thousands of music titles the new corporation would have been the online movie and music provider years before Blockbuster or Netflix.  Again, many billion$ lost (including my own investments of several thousand $).

  20. BestBuy – always same product. No custom computers
    Macs – Angry Employees.
    Home Depot – Lack of services and Worst Home Delivery Company. I prefer their own delivery company than some companies -> Reason: Stupid Quebec Delivery Company.

  21. It's funny how alot of these problems all share the same theme of not thinking about the future and having a conservative mindset.

    Also want to throw in Nintendo's blunder during the mid-90s when they could've collaborated with Sony on a new console with CD technology. Instead they stuck with cartridges and in turn not only created their biggest competitor in the industry, but also lost some third party support for their N64 console from companies like Square, which created the Final Fantasy series. And what do they have to show for it? The CD-I games.

  22. Just saying Nokia did loose a lot on the phone market. But they are extremely advanced in Technical solutions and are one of the leading companies in implementing 5G

  23. just because excite could of bought google doesn't mean that after they bought it they would of done the same strategy of google today. They probably would of bought it and use some of the tech and threw it on the back burner.

  24. Internet killed off the greatest things from my childhood. Born in 84, as a kid, going out on Friday to rent movies and videogames, get fast-food and come home to eat tacobell while watching Leatherface (TCM part 3). Renting Nintendo 64 games.
    Internet also made CD's obsolete. Made it even harder to make money by being an artist, when all your shit is downloaded and pirated. Destroyed the market on movie's.
    The internet is killing off everything, slowly. In the future, I bet you'll even be able to transfer yourself into the internet. The internet is literally a new world. A very dangerous world.

  25. @15:00 I thought that if anyone doesn't think stem cell companies are not going to change everything,they are insane! HIV mmm cure next!

  26. Actually; meego wasn't a "completely new thing" it had been working on a Linux based os, called Maemo, which was a Debian derived fork, before joining forces with Intel, whom had been developing a similar system, called MobLin, which was a fork based on the Fedora codebase.. Which wasn't a very good merger, as both MobLin's .RPM package management system, and Maemo's .DEB system, caused a lot of internal clashing, before it worked right..

    With the failure coming from the moment Steven elop became CEO, and and literally wanted to invest all manpower into the "burning platform" called Windows phone 7, practically tanking the company overnight, as sales for Symbian based devices were still selling strong in most non-European markets..

    With the next flop being the literally botched up sales of the Nokia N9, which was not sold in territories that have always had good sales on Nokia products..about and around up to the Infamous elop memo, where the company was forced to forego sales on feature phones and traditional smartphones, in exchange for the promise of a windows phone 7.5 based phone, in about 6-8 months ahead!..

    And mind you, that at the time; the highest Android version was 2.3, and the iPhone 4, as its complementary competitor.. With the original iPad having launched a year prior, and the first dualcore smartphones (HTC pyramid (iirc) LG P-990/990, and the Samsung galaxy S2, having all released in that year, with Android 4.0 being scheduled for an autumn 2011 release, prior to the point where Nokia under elop, was scheduled to release the first handset with windows phone 7.5.. Which was by then.. A horribly outdated system already.. And with elop firm in the CEO seat, he managed to run the company pretty bad into the ground, until Microsoft could buy them all out.. In 2013

  27. Another fact about Blockbuster, in the early 2000s they original had the idea of a streaming rental service before netflix but never went ahead with it.

  28. XEROX, I can't believe they this quality this potentiel this ultra innovation in 1974, you're sure with the year in comparison with other system, the 2 fuckers STEVE JOBS and BILL GATES finally invented nothing because XEROX DO IT 10 years before MACHINTOSH and WINDOWS, XEROX must be at the PLACE of APPLE and MICROSOFT, THE 2 THIEVES

  29. Xerox litterally had the future in their hands, but ultimately it takes a person to comprehend the potential to make it big.

  30. I've never even heard of Excite before this video. Now I know why.

    Also I still have a Kodak digital camera. 😀

  31. Nokia case is extremely sad tbh. They made REALLY good phone, they just can't compete OS-wise. I remember back in the day despised Symbian, it's so bad even compared with old Java system
    And worse of all, Android is free open-sourced OS. Someone has too much ego up their ass

  32. I loathe those idiots at Kodak. Kodachrome and 35mm darkroom artistry were among my passions. I hate digital cameras. Everything they produce looks plastic.

  33. represent.us.com
    he listed All of blockbusters money on purpose. yes, I said it. nobody's that stupid. it's called insider trading. and put options.its the same kinda thing that happened to Delta stock, on 9/11. research everything you question, and follow the money, and your gut.

  34. Old senile people who can't learn new tricks fail their business to those who are lead by young entrepreneurs.

  35. Number 7 must be IBM wrt MSDOS. IBM stated that there was no money in software, but in hardware. So, allowed Microsoft to keep the rights to MSDOS when IBM put it into all their IBM office computers – in those days, all offices around the world had IBMs or IBM compatibles (also running MSDOS). Years later IBM bombs out of the desktop world, but Microsoft is still one of the world's richest software companies all thanks to IBM!

  36. @1:50 To be fair, who is to say Excite would have been as big as Google in 2019? The Google technologies of 1999 was still in its infancy and with Excite being in the ownership role, I cannot see how they would have had traveled the same path to success.

  37. Another blunder: Does anyone remember IBM's OS2, their operating system to compete with Windows and Apple? I worked at IBM's R&D facility at Yorktown Heights in 1994-95 on another project and got to know some of the OS2 team members. I asked someone how much had been spent on OS2, so far. Hundreds of millions, I was told. I joked that for a mere one million dollars, I could advise them to immediately stop all work on OS2 and disband the team, cuz there was no way they were going to catch Microsoft and Apple at that point. The very popular Windows 3 and Office were already entrenched in the workplace, and although the Mac had a small market share, it was the OS of choice in the graphics design community. Anyone who used Photoshop and Illustrator was using Mac at that point. Of course no one would listen to me — much less pay me the million bucks for my advice. Anyway, by the time IBM finally pulled the plug on OS2 a few years later,, they had sunk around a billion dollars into that doomed project.

  38. Number 5 Excite did not predict the future it's like the stock market no ones knows if it stocks will rise or fall it's not a disaster it's just that they didn't buy google not a disaster on the other hand if they didn't buy google to save their own company that would be a different story.

  39. Love that you used the scene from pirates of silicon valley. Anybody intrested might wanna watch that movie cause then you can see how Microsoft gained stock in apple.

  40. To any one that wonders why CEOs make so much money this is why lol. A great CEO gets you Google and a bad one gets you blockbuster.

  41. Xerox did NOT give one of the greatest inventions away!!!

    Xerox gave ALL of the greatest inventions away.

    Xerox should own the world by now.

  42. I am utterly convinced Google are listening to my conversations, the last coupld days i've had 2 conversations about the failures or history of Blockbuster, Nokia, and Kodak….now YT suggests this video to me, that has those 3 logos in the thumbnail…..this is actually almost too close to call a coincidence….
    …interesting video though.

  43. The original owner Duane Hizinga sold blockbuster understanding it was a dying buisness model due to Redbox . Where the new owners messed up was purchasing Blockbuster in the first place.

  44. Oh my God in the computer era it's like oh my God Xerox could have owned on the computer 🤣🤣🤣
    I can just picture someone in the Xerox office crying a river right now

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