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Evernote, the note taking application started off worth one billion dollars however fast forward to three years, and the tables have turned.
What was once a firm with 30 million registered users with a total funding of $270 million is now cutting 47 employees and shutting down 3 out 10 of its global offices.
So what caused Evernote’s downfall in revenue?
Former employees believe that its the firms lack of focus on its growth and poor choice in prioritization. Instead of focusing on its core product that helped them attain their revenue in the first place, they spent more time on releasing new products and features. Evernote’s sole priority was making money and they were corrupted with the mindset that producing more new products would help them do so. However, my take on this is that if a firm tries to expand its company into producing different items, if wouldn’t differentiate from other firms. Instead, I feel that Evernote should focus on its core product and work towards enhancing its features to keep its customers.
Thus, Evernote should pursue a focus-differentiation strategy. In order for the firm to achieve long run growth they should focus on how they can differentiate their application from other rivalry such as Noteshelf and Simplenotes. Differentiating their application will allow them to pass higher costs to customers since close substitutes don’t exist.
Before Evernote drifts away from its top status it should prioritize their focus and cut back on investments to improve its cash flow to help maintain their reputation.
Sources:
http://www.businessinsider.com/evernote-is-in-deep-trouble-2015-10