Failure Museum

@Myspace failed due to rising competition, a buggy website, and an annoying user experience. This led to low user engagement. Strong engagement leads to better retention, a higher price paid per user, and makes it easier to upsell and cross sell the customer.

@Segway was banned from sidewalks and roads because it did not fit any existing categories, nor could they solve a problem for a clearly defined audience. Just like @BirdRide, most people didn’t need an alternative to walking or biking.

@BlackBerry Storm was RIM’s first attempt at an @Apple iPhone rival. Virtually every one of the 1M phones were faulty & needed to be replaced. Blackberry knew the device had major issues, but felt it was better to release a flawed product than nothing at all.

Launched in 1954, Sports Illustrated was one of the few sources of real sports reporting. Circulation peaked 30 years ago. @espn and the social web saturated the public with sports. They didn't evolve as competitors offered a better way to solve the same problem.

In 1995, General Magic was the first concept IPO in Silicon Valley history. This is when a startup doesn’t have a working product, so they rely on concept alone. Two years later the company went bankrupt as consumers considered the smart devices unnecessary.

@MoviePass hoped subscribers wouldn’t use the service regularly — like gyms, which use no-show subscribers to financially offset their heavy users. Subscribers, who loved the low price, used the service so much leading to its downfall.

Washington Mutual, the 6th largest bank, failed because it became the poster child for subprime lending. They were the @Walmart of banking because they focused on customers other banks had shunned while expanded its branches too quickly.

As you watch the @TheMasters, I'd like to share some golf history. @Nike Golf discontinued its equipment business in 2016. Declining sales was due to competition from other major brands such as @CallawayGolf, @TaylorMadeGolf, and @Titleist. @PGATOUR @PGA

@BICGroup, maker of disposable pens, razors & lighters, extended its throwaway empire to perfume in 1991. Similar to @MolsonCoors expanding into sparkling water, @harleydavidson & @BurgerKing expanding into cologne, & @PepsiCo expanding Cheetos into cosmetics.

In 1983, market saturation, high number of poor quality games, and growing interest in personal computers killed @atari. Dramatic and rapid technology shifts can surprise companies who don’t get ahead of them.

In 1989, the @NintendoAmerica Power Glove controls were obtuse, making it impractical for almost every game. It’s important not to scale go-to-market until you’ve had repeatable success with your product.

With the @MLB season kicking off this week, I'd like to share a @SFGiants memory. With fans not having much reason to show up to Candlestick Park in 1984, the Giants introduced the Crazy Crab, a proto-Gritty crustacean designed to be hated.

AOL peaked at a $200B market cap; they didn’t want to cannibalize their dial-up business leading to their demise in 2009. Dramatic and rapid technology shifts can surprise companies who don’t get ahead of them.

In 1997, the high price and early problems with its handwriting recognition feature limited @Apple Newton’s sales. As I coach entrepreneurs, in the early days you should maximize the number of quality customers you have and not let pricing get in the way of adoption.

In 1988, Jarts, which were lawn darts with metal spikes were banned by the Consumer Product Safety Commission due to the severe danger they presented. From 1978 to 1986 lawn darts were responsible for an estimated 6,100 hospital emergency-room treated injuries.

In 2008, @BurgerKing cologne was proclaimed with “the scent of seduction with a hint of flame-broiled meat.” It didn’t appear Burger King leveraged their customer advisory board well similar to @harleydavidson when launching their cologne.

@Apple Lisa’s user experience was sluggish, while its $10K price tag ($28K now) was only affordable for the wealthy. In the early days you should maximize the number of quality customers you have and not let pricing get in the way of adoption.

In 1995, @Starbucks launched a cold, lightly carbonated coffee drink called Mazagran in partnership with @PepsiCo. It was cold, when people expected coffee beverages to be hot. A lot of customers were willing to give it a try, but it didn’t get repeat business.

In 2016, @PepsiCo collaborated with @Forever21 to launch Cheetos makeup products following @kfc’s launch of edible nail polish. However, consumers preferred their lip balm to taste and smell like vanilla, cherry, mint & orange, not Cheetos.

Frequent software and parts problems frustrated @FiskerInc owners with their constant and complicated repair jobs. It’s important not to scale go-to-market until you’ve had repeatable success with your product.