The Biggest Business Mistakes in History
The Biggest Business Mistakes Made – Ever. Making mistakes is one of the facts of life. But even if we occasionally encounter major failures or deal with the effects of someone else's mistakes, we forget that mistakes are part of life.
It's comforting to see some of the richest people in the world doing well despite their expensive mistakes. The 8 biggest business mistakes ever made to help you relax
1- Excite could buy Google for less than $ 1 million.
In 1999, Excite was the second largest search engine, while Google had just entered the market. Larry Page offered to sell Google for $ 750,000 to Excite. While there were several possible explanations as to why Excite did not buy Google, the result was clear. Excite was eventually acquired by Ask.com, which has a 2 percent market share in the search market. 92% of the searches made today are done through Google and the company is worth more than $ 280 billion, which is 360 thousand times more than what Excite will pay.
2- Daimler-Benz lost $ 20 billion in Chrysler.
Although Chrysler has always been one of the top 3 car companies in America, it has had a hard time maintaining its international presence. Daimler-Benz (aka Mercedes) saw the great opportunity here and merged with Chrysler in 1998 at a cost of $ 30.7 billion. Unfortunately things did not go as planned. Although theoretically it was a split by half, Chrysler sales accounted for less than a third of total company revenue in 2006. In the end, Daimler-Benz decided it would be better off without Chrysler, and sold 80 percent of its shares for $ 7.4 billion in 2007. This unhappy journey on the road to unification cost Daimler-Benz over $ 20 billion.
3- Kodak made the first digital camera in 1977.
Whenever technology changes the layout of an industry, some businesses adapt and evolve, while others continue to do the old one until it's too late. For Kodak, which lost its value with the introduction of the digital camera, the situation was a little different. Kodak patented the first digital camera (using tape to store approximately 100kb of images) in 1977. But Kodak, who made a lot of money from the film, did not introduce this technology to the public in time. Although it was clear that the market is keeping up with the digital, Kodak continued to focus on traditional film cameras. When he finally entered the digital market, although Kodak sold his cameras at a loss, he did not make strong gains alongside manufacturers that have been producing digital for years.
4- News Corp's Myspace failure
In a world ruled by social media, it is quite odd that Myspace, the ancestor of all social media sites, is not in sight. Saying that Myspace is defeated by Facebook makes the problem much simpler, as there are many platforms that still exist alongside Facebook today. While Myspace was still on the rise, it was acquired by News Corp for $ 580 million in 2005. The first few years were good, and Myspace was estimated to be worth $ 12 billion in 2008. But News Corp didn't manage the site well enough, and after three years, Myspace's value has plummeted. It failed to adapt to the change brought on by the times and people switched to other social media platforms. In 2011, News Corp sold Myspace for just $ 35 million.
5- Blockbuster has rejected many offers to buy Netflix.
It may be difficult for some of us to imagine these days, but once upon a time, video rental grocery stores like Blockbuster were a common part of weekend plans. Online video rental services like Netflix have destroyed the old video rental business model. Blockbuster entered the market late, although there was a chance to enter it earlier. In 2000, Netflix offered to become Blockbuster's online component and join the company. According to an interview with Barry McCarthy, Netflix's financial manager, Blockbuster responded with a laugh. But Netflix continues to evolve while Blockbuster is down.
6- A simple math mistake cost NASA 125 million dollars.
Decimals and fractions, which gave many students a headache, not only prevented students but even some of the smartest people in the world. In 1999, a Mars shuttle Lockheed Martin designed for NASA was lost in space due to a simple mistake made by an engineer. The mistake they made was due to the fact that the engineers used the imperial measurement system in their calculations while using NASA's metric system. This mismatch caused the $ 125 million ship to malfunction and disappear into space. As strange as Lockheed used to use imperial units for NASA, there were many situations where this error could be understood but not understood.
7- Apple's partner Ronald Wayne sold his shares for $ 800
Ronald Wayne, who held 10% of Apple's shares in 1976, sold these shares to Steve Jobs and Steve Wozniak for just $ 800. Had Ronald Wayne not sold these shares, he would have owned a fortune of $ 100 billion today.
8- Masayoshi, known as Japan's Bill Gates, lost $ 70 billion in the last night
Known as the Bill Gates of Japan, Masayoshi Son had invested in many internet companies, large and small, before 2000. When the internet bubble burst in 2000, he lost $ 70 billion in just one night. It is seen as the biggest loss of wealth in history. His total fortune of $ 78 billion melted in one night to just $ 8 billion.