“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.|
The tough rides have not deterred these brands. They have explored other prospects and the show goes on.
Needs of a business are dynamic and are dependent on market conditions. Keen to explore further? Check our program @https://online.ifheindia.org/
Now it’s your turn. Tell us about two business turn-offs which you’ve come across.
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