The digital age has revolutionized the way in which businesses operate, particularly in the past decade. Some businesses have embraced the digital age, leveraging new technologies to reach millions of customers and grow their profits.
Others, however, have fallen by the wayside, unable to keep up with the rapidly changing landscape.
In this article, we will examine five businesses that have flourished in the digital age, as well as three that have failed to adapt. We will explore the reasons for their success or failure, as well as what businesses can learn from their experiences.
5 businesses that flourished in the digital age
1. Amazon
Amazon has been one of the biggest success stories of the digital age. Founded by Jeff Bezos in 1994, it now has more than 500 million active customers worldwide.
In addition to selling everything from clothing and electronics to books and music, Amazon’s television shows and movies have brought them success.
They also own Whole Foods Market (a grocery chain), provide cloud computing services for businesses and offer voice-activated virtual assistants through their Alexa platform.
When you consider that Amazon has grown from selling books online to selling almost anything under the sun – and doing so at lower prices than its competitors – it’s hard not to be impressed by its success story!
2. Facebook
Facebook is the world’s most popular social media platform, with over two billion users. It’s also a business that has flourished in the digital age.
Facebook was founded in 2004 by Mark Zuckerberg and his college roomies at Harvard. The idea was to create an online directory of Harvard students’ pictures and contact information, which they called “The Facebook.”
After launching the site publicly in 2006, it quickly grew into something bigger: a worldwide social network where people share everything from photos and videos to events they’re attending or songs they like listening to – and even thoughts or feelings about what they had for breakfast.
3. Netflix
Netflix has used digital technology to become the global juggernaut of streaming. Netflix was founded in 1998, when the internet was still relatively new.
By 2002, it had one million subscribers, and as more people gained access to high-speed internet connections and streaming technology improved over time, Netflix began expanding rapidly into different markets around the world – from Australia (2005) all the way up through Latin America (2010).
By 2017, they had grown to 130 million subscribers worldwide! Now, they’re a household name and service with the majority of people having encountered or subscribed to Netflix.
With such rapid growth come challenges, though, which they address through providing a wide range of new content. Fortunately for fans everywhere, who love nothing more than binge-watching their favorite shows whenever possible, there’s always something new on Netflix.
4. Google
Google has changed the way people search for information and it is still the most popular search engine on the web. Google handles more than two billion searches per day – and that number continues to grow.
Google is also responsible for creating some of the most successful businesses of our time through their AdWords program.
Uber was launched with only $200k from Google ads; Airbnb was launched with $100k from AdWords ads; YouTube was acquired by Google after being created as part of another company’s research project (which happened because someone Googled “video sharing site”).
Nowadays, people Google everything, but it’s certainly not the only website people use as a database. For example, if you want to find the best bookmakers for sports betting, you can look through a review website that will detail all of your options and even rate them.
Doing this, you can make sure you’re betting on a reputable bookmakers website that’s safe and pays fairly.
5. Uber
Uber was founded in 2009 and now has a presence in more than 600 cities in over 80 countries. Uber’s ride-sharing function paved the way for a slew of imitators. It has revolutionized the way many people get around in cities.
The way it works is that an algorithm determines the price of each ride based on current demand and distance traveled, so prices vary depending on where you are at any given time. This feature allowed them to dramatically increase their profits.
Businesses that failed in the digital age
Sears, Kmart and JCPenney
Sears, Kmart and JCPenney were all once major retailers in the US. Today, however, they are struggling to survive.
Kmart filed for bankruptcy in 2002 and Sears filed for bankruptcy in 2014. The two companies merged but have since been battling with declining sales and dwindling profits as customers continue to turn away from traditional shopping experiences towards online platforms like Amazon Prime.
The effect of the internet on retailers
It’s no secret that digital technology has created new opportunities for some businesses, while it has destroyed the prospects of others. Smartphones and the internet have helped boost sales of products such as books and music, but have also led to the demise of many retailers.
The rise of online shopping has been one of the biggest factors in this shift. People now shop online whenever they want – and often without even leaving their homes. As a result, brick-and-mortar stores are seeing fewer customers than ever before.
There are many examples of companies that did not adapt to change and suffered as a result. Blockbuster Video is one of the most famous but there are many others. In the early 2000s, Blockbuster was the largest video rental chain in America, with over 9,000 stores across the country.
However, Netflix launched its video streaming service sector of its business in 2007 and by 2011, it had surpassed all other competitors to become number one in that market segment.
Blockbuster eventually went bankrupt due to its failure to adapt quickly enough; this was partly due to internal conflicts between managers who wanted to innovate versus those who wanted things done more traditionally and cost-efficiently.
In contrast with these failed businesses are those whose leaders made bold decisions about how they would compete with new technologies.
Amazon founder Jeff Bezos has the true qualities of an entrepreneur and famously decided not just to sell books online but also sell other items such as toys and electronics through his company’s website.
Google founders Larry Page and Sergey Brin decided early on that their search engine would be free rather than charging users money per query, like their competitors Bing and Yahoo did at first.
Facebook founder Mark Zuckerberg chose to not only offer social networking services but also make them available without charge so everyone could access them easily, regardless of income level or location.
Conclusion
The digital age has ushered in a new era for businesses. Those who adapted and embraced the chance had a chance to do well – even better than before. Those who didn’t fell by the wayside.
Also read: ADVANCE SOLUTIONS: How Managed Service Can Drive Digital Transformation
