Top 5 Case Studies of Business Failing

Case Studies of Business Failing

The Case Studies of Business Failing help us to pay attention to how the different companies made the mistakes and results in the greatest failure, here great examples are mentioned below,

Case Studies of Business Failure
Case Studies of Business


In 1950, ford wanted to make Edsel a flagship product on which they had, a lot of hope because they did, a lot of research they invested, a lot of time and almost $35 million but when that Car get launched in reality, people named that car as one of the ugliest car of all time biggest failure happened got three reasons,
1st – In 1955 America’s economy was  increasing, people had extra money which they can use for their comfort hence at that time people were interested in medium-range cars by seeing it, Ford decided to launch Edsel but from 1958 onwards in just three years everything was changed market wasn’t performing that good and people were more interested in cheaper range cars compare to a medium range of cars.
2nd – There was high expectations related to Edsel. Expectations were so high that it almost became unrealistic because of which, when the final result was launched people didn’t like it all.
3rd – It wasn’t that good quality-wise. It had a problem in its break and acceleration means they invested a lot in research but fail to invest in quality.

Three things which we should learn from these reasons and story is;

               i] – Never think that things will be the way we wanted, it won’t remain the same always hence unpredictability will always be a big thing in a market same thing is taught to us by, “The Lean Startup Book.”

               ii] – We should always keep our expectations in check shouldn’t have unrealistic expectations, should be realistic.

               iii] – Should give more efforts to quality compare to research which is taught to us by many businesses books.


     Piggly -  Wiggly was US supermarket company which was first to introduce the self-service concept in the market and also patent it, in fact, it was the first supermarket which introduces shopping cards and imposed price tags in every item and also kept checkout standstill 1920 Piggly- Wiggly was growing very fast in the entire US but there were some the franchise which was getting failed in New York now seeing such failure, WALL STREET few investors tried to take advantage of that situation by creating a Bare Raid.
Bare Raid is something was investors invest in the falling stock price to earn money. 

     They try that anyhow that companies stock price fall further and to make it fall further few investors claimed that Piggly-Wiggly is felling because its New York franchise isn’t working, which wasn’t true now by looking at it, the founder of Piggly-Wiggly Clarence Saunders got very angry. He decided to teach them a lesson, therefore he bought his companies 98% shares because of which his stock price value increased from $39 to $124 through which those Bare Raiders faced losses and they were bankrupt. 

     This is what Clarence assumed, but in reality, what happened those Bare Raiders convinced NYSE to give them some extensions for their payment on the other side for so much investment Saunders by himself facing huge debt, he faced a huge loss after which he declared bankruptcy his company Piggly- Wiggly today is an unknown franchise, known by a very few if he would have controlled his emotions or if he would have high influence on the stock market exchange then it is assumed that today Piggly-Wiggly would be the same as Walmart.

Related:  Top 5 Case Studies of Walmart

     Hence the lesson, fight especially to take revenge can destroy you hence it is best to avoid or else become so influencing and powerful that people don’t even think of fighting with you.


The buffet is the world’s one of the richest person men, but he says that his Tax Rate is less than his secretary means his secretary who earns very less than Warren Buffet pays more tax compare to him well this is the harsh truth of TAX System let’s understand it with American’s Example:
In America Government start taking income tax from 1913 because they were in need of money, while starting it, their main aim was to take money from their country’s rich people that too less amount but today things have changed, tax rates are increasing because of money greediness earlier rich people were the target of tax, but today middle-class people have become the main target because rich people have become smart. They found out many loopholes in the tax system to save their money whereas middle-class people just do hard work to give the big amount as a tax to the government this has become a cruel system, where the most middle class people are suffering now there can be two solutions for this problem;

   1. To change the tax system which is truly a very difficult thing to do.

   2.  To start thinking like a rich people should take advantage of system loopholes and how you can do it, that you can learn from Robert T Kiyosaki book, “Rich Dad and Poor Dad.”

4] Xerox Rollercoaster

We can see Xerox story in the three stages,

1st - When it was developed and launched earlier there was a time when people used to use Mimeograph Machine to remove photocopy which was neither easy or cheap for it, people used to use big paper and sensitive heat paper to remove photocopy, not even this wet paper used to come out from that machine. But in 1938 in the process of Xeroxcopy Chester Carlson and his assistant removed photocopy in standard office paper, he developed that technology more properly with the help of one university and invested 75 million dollars and almost 13 years and when In 1958 he joined hands with Xerox company to launched his product, even then he wasn’t sure whether it will work or not, in fact Xerox founders told their families and friend not to invest in Xerox shares but the result shocked everyone, Xerox company in just 6 years increased their revenue to $500 million every year in America Billions were people removing photocopies using Xerox machine because of which Xerox became America’s one of the biggest and a successful company.

2nd -   When Xerox maintained it’s a success and did many donations example: The University which helped Xerox to develop the technology for it Xerox became the second largest donator and to support UN, Xerox runs a $4 million campaign.

3rd -  When Xerox success started falling after 1965 many competitors started doing the same thing like Xerox that too cheaper then Xerox and Xerox failed to do something new and different, fail to hold customers.

     Important the lesson, which you can learn from these stages are remembered that your life and the business journey will be a roller coaster where many ups and downs will come, but if you develop something useful by putting efforts and time then for sure you’ll be successful and people will remember you.

Example: Even today in many places people say Xerox to a photocopy.


     Never be afraid without knowing the proper facts, for which we get worried are mostly don’t exist in reality and if it exists then not at the level we assume.

     The start of 28th May 1964, to three consecutive days stock market has an experienced flash crash where the market has faced $20 billion loss, such huge stock market history started with a very small thing actual reason for such a the huge loss was, that Trading Office was updating stock price manually but because of the manual updates, there was a delay of 45 minutes. The moment big investors realized that there was no update on stock price hence they assumed that price must be falling. 

     Therefore, they are not updating because of such the assumption that started selling their shares the moment big investors started selling their shares, price of shares actually started falling looking at it almost everyone started selling their shares because of which chain reaction started and in just 3 consecutive days market has seen $20 billion loss on the other side people had a common knowledge that the index can never be less than 500 the moment index reach near to 500 points then people crazily started buying shares again as a result buying panic started and the loss which market has seen in 3 days all was recovered in just one day. 

     Now this entire incident shows that we humans many times because of our stupid from takes wrong decisions most of the time people just assume that things are worst without knowing the actual facts well this fear was good earlier for the survivor but it is not that important in this era. Hence, the lesson is never afraid without knowing the people's facts.  

"Failure is Progress in Success." 

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