Learn from the 7 business models that failed in 2011

Philippe De RidderBusiness Model Innovation

Last year we featured the 10 business models that rocked 2010. Now we studied 7 business models that got shot in 2011! Discover the learnings from the business models of Southwest, Airbnb, Bitcoins, Netflix, Dexia, HiGear, Nokia, RIM, and Swoopo.

Let’s look at one example. Last year we saw how the incredible rise of Netflix suddenly halted. In two years time Netflix managed to boost its stock price value with almost 400%. An amazing figure in economic turbulent times! But then, in July of last year, Netlfix announced a new pricing strategy for its business model. The bundled package of DVD-by-mail and streaming service would be split up in 2 brands (Qwikster & Netflix). This resulted in a price increase of +60% for many of the Netflix subscribers. The backlash that followed the months afterwards lead to a loss of almost 1,000,000 customers and a drop in stock price of 200 dollar. By the end of the year, the operation to redesign their revenue model was canceled (sort of) but the damage had been done. Let’s hope Netflix doesn’t go down the MySpace route.Amazon, Redbox and Apple are not the smallest player to compete with!

Did we miss any relevant cases? I guess Groupon could be added to the list. Kodak as well? Thanks for sharing your ideas!