Katherine Kuo’s blog post discussed about the poor marketing and management decisions made by Amazon that eventually lead to a decrease in Amazon’s customers and its shares. Due to the increase in competitors that also used Amazon’s initial concept of “order online, they will be delivered to the doorsteps of your house,” Amazon was put into a situation where they had to find a way to bring out a new product or an idea to boost their attractiveness. Although they introduced their very own Kindles and smartphones, consumers always chose the less expensive alternatives, such as Target or Walmart.
As competition increases in industries, many companies are also losing a lot of money and in worst cases, going out of business. Motorola, for example, was one of the world’s biggest mobile phone sellers. However, Motorola missed their chance in catching up to the smartphone world. While all the other companies, such as Apple and Samsung, were introducing their 3G touch screen phones that could already handle emails, social media, and mobile apps, Motorola was still promoting 2G phones which weren’t as appealing.
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As technology develops exponentially these days, it’s essential for companies to keep up with the demands of the customers. It is definitely detrimental for companies to stop innovating or to be “late” in the technology world. Companies should always be on top of things and think of ways to be original and unique to survive the competitive market.
Reference:
Anderson, Howard. “10 Reasons Why Motorola Failed.” Network World. N.p., 9 Apr. 2009. Web. 14 Oct. 2014. <http://www.networkworld.com/article/2277903/network-security/10-reasons-why-motorola-failed.html>.
Image:
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