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Companies That Don't Innovate

Posted on 12/12/11 at 6:36 pm
Posted by nolanola
Member since Nov 2010
7593 posts
Posted on 12/12/11 at 6:36 pm
The Amazon thread brought up Circuit City as a company that didn't innovate. I think watching/following companies that didn't innovate and now can't innovate is very interesting. Some examples would be Kmart and Burger King vs. Walmart and McDonalds. Once the company gets "behind the 8 ball" they don't have cash to innovate and they will eventually die. This is why McDonalds and Walmart shed their buildings every decade (or two). McDonalds just typically keeps the same real estate unlike Walmart.

What are some other good examples?
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
75331 posts
Posted on 12/12/11 at 7:06 pm to
Radio Shack


Posted by Carlton Banks
Bel-Air, Los Angeles, California
Member since Feb 2008
1578 posts
Posted on 12/12/11 at 7:08 pm to
Quiznos and Subway?

They had the whole toasty thing... but since then I've forgotten about them.

Subway jumped on the healthy bandwagon and became huge.
Posted by nolanola
Member since Nov 2010
7593 posts
Posted on 12/12/11 at 7:23 pm to
Yahoo and Google
Posted by TigerDeBaiter
Member since Dec 2010
10272 posts
Posted on 12/12/11 at 7:42 pm to
quote:

Radio Shack


I don't know, they do seem to have some sort of a niche market for odd connectors and what have you.

That and old people, so, I guess I can see it.




Also, RIM, at the moment comes to mind, along with Nokia.

Sears fell from the top pretty hard, but is far from failing. The history of sears is fascinating, they used to sell houses in the same fashion that Ikea sells furniture, ready to assemble, stamped pieces with instructions.

Blockbuster is a gimme, and they even had a shot too. When netflix was coming on, blockbuster decided it would follow, and offered the great service of unlimited in store swaps, for free. Soon after, they changed their pricing structure, and people went for the cheaper Netflix. Seems as though they could have undercut Netflix by selling convenience and instant gratification.
This post was edited on 12/12/11 at 8:26 pm
Posted by reb13
Member since May 2010
10905 posts
Posted on 12/12/11 at 8:10 pm to
Aol and Netscape
Posted by Ric Flair
Charlotte
Member since Oct 2005
13694 posts
Posted on 12/12/11 at 8:29 pm to
Rite aid vs. Walgreens/CVS.

It seems like every Walgreens/CVS is on a prime corner lot at a busy intersection, while half the rite aids are in aging shopping centers.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 12/12/11 at 8:37 pm to
Really stretching the term innovate in this thread.
Posted by Cold Cous Cous
Bucktown, La.
Member since Oct 2003
15054 posts
Posted on 12/13/11 at 9:57 am to
quote:

Really stretching the term innovate in this thread.

Yeah; McDonald's one great innovation was in 1950 when they realized Henry Ford's theories could apply to hamburgers. Since then their greatest innovations have been in advertising.

As for Radio Shack, they are apparently one of the leading cell phone retailers for some reason.
Posted by !Tiger
Member since Dec 2011
123 posts
Posted on 12/13/11 at 10:03 am to
quote:

Once the company gets "behind the 8 ball" they don't have cash to innovate and they will eventually die.


MT frowns on using cash to innovate. Need debt.
Posted by !Tiger
Member since Dec 2011
123 posts
Posted on 12/13/11 at 10:06 am to
quote:

McDonalds just typically keeps the same real estate unlike Walmart.


McD's is a real estate company.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 12/13/11 at 10:47 am to
Don't be bitter bro. MT frowns on shitty finance (and shitty posters). In fact, I would suggest to you that the vast majority of innovation (in the real sense of the word, not the business process stuff being discussed here) is done without hardly any debt (VC). But that's not because debt wouldn't be a better option, its because they can't get any.
Posted by homeskillet
Huntsville, AL
Member since Dec 2011
225 posts
Posted on 12/13/11 at 11:09 am to
quote:

Companies That Don't Innovate
Yahoo and Google
You are kidding right? Google is one of the most innovative tech companies around.
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 12/13/11 at 11:11 am to
quote:

You are kidding right? Google is one of the most innovative tech companies around.


I'm pretty sure he's saying that yahoo didn't innovate and google did, and that's why they're on top.
Posted by homeskillet
Huntsville, AL
Member since Dec 2011
225 posts
Posted on 12/13/11 at 11:16 am to
quote:

I'm pretty sure he's saying that yahoo didn't innovate and google did, and that's why they're on top.
O I C

Then I agree
Posted by nolanola
Member since Nov 2010
7593 posts
Posted on 12/13/11 at 11:32 am to
quote:

I'm pretty sure he's saying that yahoo didn't innovate and google did, and that's why they're on top.



Yes - I meant in as in Yahoo vs. Google.

Although not a true failure (yet)... HP vs. Apple.
Posted by homeskillet
Huntsville, AL
Member since Dec 2011
225 posts
Posted on 12/13/11 at 11:36 am to
HP has some history. They are heading in a different direction and if my memory serves me correctly, they will be moving into enterprise solutions almost exclusively.

I think that is a bad comparison as well. Think of the run HP had in the early computing boom. Now think of Apple back then...they sucked. It is their gadgets, smart phones, etc... that are driving them now. I think all tech companies eventually level out at some point. HP has leveled out and Apple will too, although not in the foreseeable future.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 12/13/11 at 12:17 pm to
Eh. HP is a conglomerate formed by two different companies in a huge merger that didn't sit very well with one side because of the massive price. Apple has no history like that, and they really do different things anyway. HP sells products that have long been commoditized, Apple designs proprietary products that have been replicated and are becoming commoditized to a large degree, but they have built a walled garden to prevent their products from becoming commoditized. HP couldn't do that with printers and laptops. Also, HP denounced their plans to spin off the consumer business when they axed the old CEO.

eta: So I agree, its a bad comparison.
This post was edited on 12/13/11 at 12:19 pm
Posted by nolanola
Member since Nov 2010
7593 posts
Posted on 12/13/11 at 3:58 pm to
quote:

Eh. HP is a conglomerate formed by two different companies in a huge merger that didn't sit very well with one side because of the massive price. Apple has no history like that, and they really do different things anyway. HP sells products that have long been commoditized, Apple designs proprietary products that have been replicated and are becoming commoditized to a large degree, but they have built a walled garden to prevent their products from becoming commoditized. HP couldn't do that with printers and laptops. Also, HP denounced their plans to spin off the consumer business when they axed the old CEO.

eta: So I agree, its a bad comparison.


Do you disagree that Apple and HP are competitors?

HP could have non-commoditized their product just like Apple did. Also, Apple has gone into existing markets and didn't commoditize their products (absolute best example is the iPhone).
Posted by homeskillet
Huntsville, AL
Member since Dec 2011
225 posts
Posted on 12/13/11 at 4:08 pm to
I don't see Apple and HP as major competitors. Apple does very little enterprise level stuff. Also, the home computing market is targeted @ 2 different groups of people.

Apple is more of a competitor against Microsoft and Google (the Android division).
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