“Setback facilitates a comeback”, so goes a saying. A setback knocks you down. But winner is the one who rises and runs.
Why Do Businesses Fail?
Experts cite six main reasons. Here’re they:-
| Reason | Case In Point |
| Faulty Judgement of Customer | Tata’s Nano car was sobriquetted as a cheap car of the masses. In India, where car is also a status symbol, the cheap tag fell flat. |
| Improper Technology | US car manufacturers failed to succeed in India. The reason is technology. American cars are known for form than function while Indians prefer performance over looks. |
| Un-Appealing Product | Jet Airways flights had more legroom with lesser seats and higher fares. Non-Business travellers chose to scrunch up their legs rather shelling out more. |
| Untimely Product Launch | Too early launch causes unacceptance; too late entry faces cluttered space. ‘Just Dial’ when launched directory service in 90’s; suffered acceptability as print directories were preferred then (unacceptance). When its search engine came a decade later, the market had many players like Sulekha and India Mart (saturation). |
| Business model hick ups | Indigo project themselves as ‘Always being on-time’. But with the increased business, the variable worries – landing slots, congestion, fuel expenses- too increased. |
| Error in Execution | Kellogg’s instant cereal breakfast was a hot pick abroad. But Indians had a breakfast pattern. Kellogg failed to indianize their products and failed. |
Conclusion:
The tough rides have not deterred these brands. They have explored other prospects and the show goes on.
Learners’ Opportunity
Needs of a business are dynamic and are dependent on market conditions. Keen to explore further? Check our program @https://online.ifheindia.org/
Discussion Question
Now it’s your turn. Tell us about two business turn-offs which you’ve come across.
Key Words
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Source Article
Lak Ananth- The 6 Reasons for Business Failure, and How to Address Them