6 lessons to be learned from big name business blunders

Apple

As a company known for its innovation and market-leading products, Apple damaged its own reputation in 2012 when it replaced Google Maps as the default mapping application on its products. Apple’s maps application was widely regarded as not up to the standards of Google’s version, with users reporting London had moved, train stations were missing, non-existent airports had appeared, and the names of some locations were spelt wrong. It was a significant and arguably embarrassing mistake for a company that is often considered a pioneer in modern technology. 

While it can’t be said for sure that it’s a result of this blunder, it stands true that many users of Apple products still use alternative mapping applications as their first preference. Apple’s mistake teaches us not to rush, and get things right the first time, even if it means letting another company launch first, or stay at the top a little longer. 

Blockbuster

Video rental chain Blockbuster was once an empire of movies and TV shows; its stores brimming with customers looking for their Friday-night-in fixes. But new models proposed by companies such as Netflix changed everything for in-store rental services like Blockbuster, as they gave consumers an alternative, more convenient option for their at home viewing. 

In 2000, Netflix offered to sell to Blockbuster for $50 million, and Blockbuster executives reportedly laughed them out of the room. Netflix is now worth over $250 billion, and Blockbuster has just one store left. If Blockbuster had been more open to changes to its original business model, things might be different now. Technology and business arechanging constantly, and companies that don’t get on board might just get left behind. 

News corp and myspace

News Corp bought the once very successful social media platform Myspace in 2005 for $580 million. As one of the very early social media sites, Myspace had built itself up to be a widely used and loved platform where users could connect with each other, but the 2000s were a time of significant change and growth for social media. Platforms such as Facebook started to take over, introducing new features, adapting to the times and keeping the interest of users. 

News Corp did not keep up with Facebook or its other competitors in the social media space, Myspace was managed badly and after initially rising in value, its worth ultimately declined dramatically and it was sold for $35 million in 2011. News Corp lost millions of dollars because it didn’t effectively respond to changes in the industry, or keep up with the developments made by direct competitors. 

Decca records

We’ve all heard of the Beatles: the top-selling music group of all time. With all its success, it’s hard to believe the band was ever rejected, but that is exactly what happened when the Beatles auditioned for Decca Records in 1962. The exact details of why aren’t clear, but with the success the Beatles saw in the following years, it’s hard to imagine Decca Records didn’t go on to regret that decision.

This story is a reminder to continue to be open to new people, new teams and new talent that could shake things up, bring on new ideas and produce quality work. Whether you’re in music or otherwise, there should always be room for people who bring value to your business. 

NASA

In 1999, a NASA Mars orbiter was lost in space because of a simple measurement error. The orbiter was designed by aerospace technology company Lockheed Martin, which used English measurements, while NASA used metric measurements. This mismatch between the two companies’ methods resulted in a navigation error, and ultimately the loss of the $125 million orbiter.

This was an expensive, and unnecessary mistake that serves as a reminder to double and then triple-check the details in your work. Whether you’re budgeting for a project or sending an orbiter into space, you don’t want to be responsible for any easily avoidable loss.

U2

In September of 2014, over 500 million iTunes users found the new U2 album in their music libraries, despite having never bought or downloaded it. It was a public relations strategy by the band to get new fans: automatically download its new album into millions of user’s libraries. Users were not impressed, they didn’t see it as a free opportunity to listen to new music but rather a violation of their privacy and consent. Users weren’t given the option to download the album for free, it just happened for them, and many of them didn’t want it. For the first few days following the stunt, users couldn’t even delete the album from their devices. 

U2 still receives backlash for this blunder, and arguably has lost the respect of many people who could have become paying fans, if their boundaries had been respected. Knowing and respecting your fans, customers, or consumers at large is incredibly important in building authentic and ongoing relationships for businesses of all kinds. 

Conclusion

While it’s easy to criticize from the outside, the reality is that running a successful business is a complex and challenging endeavor. These lessons remind us that even industry giants are not immune to errors in judgment or execution. By staying humble, remaining open to learning, and applying these insights proactively, businesses can work towards building more resilient and successful operations.