It is a known fact that famous companies like; Facebook, Coca-Cola and Google suffered huge setbacks in their early years. However, it is no secret how these major businesses made a comeback and became even more successful by simply overcoming their hurdles.
In this article, we lay down 11 famous companies facing credibility issues and major setbacks in their businesses. Each famous companies have their own set of challenges if encountered wisely; they can set examples for upcoming startups.
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1. Toyota:
Over the recent years, Toyota has recalled more cars than any other famous companies. This reflects bad management and lack of interest from the famous companies side. Major famous companies like Toyota have a reputation to maintain. Not taking this matter seriously is very incompetent of them. Toyota might be increasing its sales worldwide, but due to its inexplicable behavior, it is losing its credibility and charm.
[the_ad_placement id=”manual-placement”]2. General Electric:
This is one of the leading famous companies in the world. However, what most people don’t know is that it is facing a financial crisis for investing excessively in its financial arm. The famous companies are carrying a huge load of debt on its shoulder, yet they are still trying to rebuild their base in industrial manufacturing through strategic acquisitions.
GE has always been at the top of the list of tech-savvy famous companies and it can continue to do so by using social media as a tool for marketing and communicating their strategic vision to their customers.
3. British Petroleum (famous companies):
One major example of famous companies facing failure is British Petroleum. The famous oil spill in 2010 destroyed the famous companies reputation as a core brand. Despite the disastrous situation, we are surprised the company is doing fairly well.
However, a few steps that will aid the famous companies to survive in a sustainable market is to keep communicating their vision to their customers. They also need to develop new marketing and advertising tools that will help them in becoming leaders in the oil industry.
4. Best Buy (Famous Companies):
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This Company is facing problems in maintaining their customers. The brand needs to utilize new marketing techniques to keep their audience attracted. The company’s stock price has fallen from 50% since the last year and is also facing a tough competition from businesses like Apple and Samsung. Customers now realized that they don’t need intermediaries when they can buy the product from a retailer shop or an Apple store itself.
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Best Buy has lost sales and customers just because they are unable to maintain a sustainable place in the market. However, they have initiated the idea of building stores within stores so that famous companies like Sony and Microsoft directly interact with their customers.
5. American International Group:
AIG was one of the many famous companies facing a meltdown in 2008. US Treasury paid $182 billion for bailing out the insurance company. The company had to sell off their assets to pay their accumulating debts. The insurance company was framed in fraud cases by the Security and Exchange Commission and the U.S. Justice Department where they had to pay a fine of $1.6 billion along with other criminal charges against their name.
Since the emerging company failed in 2008, it re-branded itself into 21st Century Insurance. It was very wise of them to completely change the brand rather than focusing on one department. In order to completely remove the stains from its name, the insurance famous companies still have to reach a wider audience and utilize new marketing techniques to become more successful.
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[the_ad_placement id=”manual-placement”]6. Smith Wesson:
With the ongoing heated debate over ammunition control, companies like Smith & Wesson has great opportunities for expanding their business. In early 2000, S&W was the only gun manufacturing famous companies to sign a contract with Clinton Administration to redesign certain safety standards and distribution limits.
The company was immediately boycotted by gun supporters and clubs and the company lost 40% of its revenues and had to shut down two plants. The company was sold in 2001, and since then they focused on rebranding and introducing new market segments and products. After all these years, they are again facing troubles in their business. The famous companies need to focus on long-term strategy rather than maintaining their political existence.
7. Lennar:
This is a leading homebuilder company is the U.S. The company faced a huge setback in 2012 along with other home building famous companies. Most of the companies were able to recover from this turnaround while others simply packed their bags. This Company signed a $1.7 billion loan agreement with China Development Bank for two huge housing developments in San Francisco.
The dilemma here is that Lennar must use a Chinese constructor for the development of houses. One of the famous companies involves Chinese Railway Construction Corporation, which is not a favorable option for the people of America. This decision might cost the company a lot since the Chinese Drywall Crisis is still a fresh bitter memory for the Americans. Lennar needs to cut down its costs and focus more on customer relations in order to boost revenues and step back in the housing industry.
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8. Amazon:
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World’s fastest growing retail store portrayed a bad image to its audience when its policy of forcing warehouse employees to work overtime with no wages, surfaced the web. When an article was published in New York Times regarding Amazon’s shark-eating shark culture, the famous companies came to the verge of a breakdown.
Amazon needs to keep in perspective their relations with customers, retailers and especially PR groups who hold the power in their pens. They need to train their management to corporate with the media group before they go against them.
9. Nestle (Famous companies):
This is one of the leading FMCG companies in the world and expected to be perfect in every aspect. However, nothing can be picture perfect. The leading brand deals in a wide variety of products, including Fancy Feast cat food.
[the_ad_placement id=”manual-placement”]What many people don’t know is that the fish used in manufacturing Fancy Feast was brought from the slave ships where workers were kidnapped and beaten. Such a disparity of slaved workers and the pampered pet was not expected from a high-quality brand that promises, “Good Food, Good Life”. This Nestle Company needs to track and equally interrogate its supply chain before even the smallest mistakes cost them a lot. Famous companies often face this one.
10. Yum!:
The main idea behind the brand is to deliver fresh, delicious and tasty fast food to people that urges them to say, Yum! Famous brands like KFC, Taco Bell, and Pizza Hut all come under the parent brand, Yum!
However, it is a major downfall when the brand fails image transference by serving tainted meat to the customers. The entire famous companies and its sub-brands suffered from this issue worldwide and the company lost its revenues while the supply was only limited to China. In order to maintain its spot in the food industry, the company needs to realize how crucial one mistake can be.
11. FIFA:
A billion dollars being made from professional sports it is quite expected some of it will change hands from under the table. However, it is also difficult to hide it under the table when it’s out in the open. 14 officials of FIFA were accused of fraud, racketeering, and money laundering. These cases went public and FIFA had a bad reputation to look after.
12. Facebook:
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The past year has been difficult for the world in general, and people have become largely divided as problems that have been hidden away have surfaced. In the light of all these events, the Facebook CEO, Mark Zuckerberg believes that 2023 will be a year for change and hopes to focus on the primary issues concerning Facebook and hopes to make it safer and improve privacy to avoid abuse. He also says that he will turn his focus to the centralization vs decentralization debate that is hot in the tech world and will bring experts together that will try “to give power back to the people” as was facebooks initial purpose.
On the other hand, Facebook continues to face resistance from the European side of the world, as they continue to debate on the rules that allow internet service firms, to get the permission of consumers to use their personal data for ad targetting. As Facebook gets a good percentage of their revenue from Europe, the privacy concerns may prove more problematic than perceived.
13. Google:
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Google faces similar issues with its ad targetting campaign in Europe and can lose a good percentage of its revenue if more people start denying the internet giant rights to use their personal information for ad targetting. Google gets around a third of its revenue from Europe and while smaller companies will bear heavier losses, Google will be bound to take a hit if it can’t recoil back. Europeans continue their antitrust suit on Googles Android app and want Google to allow them to access play store on their smartphone’s without installing Google search beforehand.
On the other hand, Google is facing people problems as it continues to hire a large number of employees to take care of Russian bots and Youtubers making upsetting videos as the government turns the pressure on them asking them to make sure their platform isn’t abused.
14. Reddit:
image credits: Reddit
[the_ad_placement id=”manual-placement”]If you keep up with tech news you’ve probably heard about the ban Reddit has placed on deepfake pornography. It has declared that placing another persons face on someone else’s body is abusive and has prohibited the act. But it according to experts the move has come a little too late. The community continues to grow. And so, does not require a mainstream platform. Some users have even gone as far as saying that since the algorithm cannot be uninvented it has to be advanced.
Reddit has also created stricter policies and has banned several abusive and misogynist forums along with others that feature white supremacy, but is receiving criticism as people continue to say that the implementation of such policies is more important than simply creating them.
It is very surprising to hear when legal issues become more interesting than the sport itself. The company needs to clear their image and beware of future conspiracies. Famous companies, famous crimes right?
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