Business comes with its ups and downs and even most successful companies have faced tough times that almost sent the companies down the drain. However, they have been able to come up with disruptive ideas which helped them bounce back.
Find out lessons on how to help your business survive through tough times learning from successful companies like Apple, Dominio’s Pizza and Netflix,:
Domino’s Pizza:
Domino’s Pizza, a multinational pizza restaurant chain, faced harsh criticism from customers between 2007 and 2009, leading to a decline in sales and a fall in the company’s stock for two consecutive years. Many customers viewed Domino’s Pizza as an inferior choice compared to competitors.
In 2009, Domino realized they could not continue like this, as they could be out of business in no time if this continued. To address this problem, the company launched the “Pizza Turnaround” campaign, where the company publicly acknowledged its flaws while emphasizing the brand commitment to improvement; they introduced an improved pizza recipe.
The company did not stop at that as they leveraged technology to make the customer experience seamless from ordering to delivery.
This campaign led to a turnaround in customer experience, leading to a surge in sales and it successfully reinvented itself through a bold turnaround strategy
Lessons:
- Leverage customer feedback: Companies should address and improve their products or services based on customer feedback to rebuild trust and relevance.
- Prioritize quality and transparency: Companies should be transparent about their flaws and strengths because customers know even without saying, so why try to cover it up. Companies should prioritize quality at all times.
Apple:
Apple, the maker of the iPhone and one of the largest companies in the world today, was once in a dire state and almost filed for bankruptcy.
In the 1990s, Apple nearly declared bankruptcy as the company’s losses continued to mount, driven by leadership challenges, high product prices without any unique features, and increased competition. It launched several failed products including the Newton PDA and the Macintosh Performa Series.
In 1997, Steve Jobs, the co-founder of Apple, returned to the company as the Chief Executive Officer (CEO) to save the company from bankruptcy.
With his return to the company, he charted a new future for the company. Jobs introduced new products like iMac, that were designed to appeal to a wider range of consumers.
He leveraged the internet and also shifted the company’s focus from hardware to software, recognizing that the company’s strength lies in developing innovative software products.
Job’s efforts yielded results as the company’s financial situation gradually improved. The introduction of the iPhone in 2007 further solidified the company following the iPhone’s tremendous success.
Lessons:
- Simplify offerings and focus on areas of strength: Businesses should concentrate on areas where the company excels to give customers the best.
- Evaluate your product or service: If your business is struggling and you are finding it hard to concentrate on a single problem based on diversified offerings, evaluate and eliminate underperforming offerings.
- Prioritize customer experience: Create products and services that delight customers and solve real problems.
Disney:
Disney is a global entertainment company known for innovation, creativity, and commercial success. Its reputation was built on creating iconic animated films and theme parks.
However, in the early 2000s, it encountered several challenges that threatened its growth. Its hand-drawn animated films like Treasure Planet and Home on the Range failed to resonate with the audience. It faced increased competition from other entertainment companies.
To reclaim its dominance, Disney acquired key companies through strategic acquisitions to revitalize its content portfolio.
It embraced technology, through the launch of DISNEY+ in 2019, bringing together its vast contents under a single streaming platform and also revitalizing its theme parks.
Lessons:
- Invest in strategic acquisitions: Businesses can diversify their offerings and secure market leadership by acquiring complementary businesses.
- Diversify your revenue streams: Businesses should learn to diversify their revenue and not rely on a single revenue stream in a competitive market.
Netflix:
Netflix, founded in 1997, began as a DVD rental by mail service company. Differentiating itself from competitors, it removed the late fees for its customers and introduced a subscription-based model, which allows unlimited DVD rentals without due dates or late fees.
Anticipating the impending obsolescence of physical media and the digital shift, Netflix launched its streaming service in 2007, allowing subscribers to watch content online. Recognizing the importance of exclusive content, Netflix produced its original content currently watched by millions of people worldwide.
With the company’s strategic move and early identification of consumer preferences, the company currently boasts over 30 million subscribers in over 190 countries.
Lessons:
- Embracing Technology: Businesses should embrace technology and not continue using obsolete strategies just because that is what they are known for. Netflix transitioned from a DVD rental service to an online movie streaming service based on consumers changing preferences.
- Adapt to Industry Trends: Businesses should be flexible enough to pivot quickly when they see opportunities to fill in the gaps where competitors are lagging.
Unexpected economic downturns or changes in customer preference do not necessarily mean the end of a business.
The ability to adapt, innovate, and adopt strategies that meet customers’ needs are key determinants in a business’s success.
Whether through embracing technology or leveraging customer feedback, these strategies from successful companies can help struggling businesses regain their stand.
