As you know, not only beginners experience business challenges. Many big corporations face problems from time to time: let it be the inability to keep up with competitors or some bad luck with launching a new product. Despite all fails and troubles, those companies keep going and apply all their patience and capital in order to survive in the race. Here are several examples of such companies that are actually better off than you might think.
After a successful launch in 2007, Dropbox became one of the first cloud storage services, which quickly gained popularity because of mass user adoption and intensive press coverage. The company was reportedly valued at $10 billion. However, in five years Dropbox found itself in a rough position due to the storage service commoditization and consequently falling prices. The company decided to direct double efforts to enterprise solution development. Unfortunately, their competitor Box had already been working hard on enterprise software and went public in 2015 with a $1.7 billion valuation. Plus Google and Microsoft can easily afford to offer cloud storage services at low prices. To stay alive, Dropbox has to convince users and also investors that their product is the best. Recently, the company raised $1.1 billion of funds, which should be used on business refocusing. Thus, in December 2015, Dropbox already announced the support suspense of their two apps, Mailbox and Carousel, with the intention to concentrate more on business collaboration and productivity.
Does anyone even remember Pandora, the once popular music service? Cause it’s quite possible that many people even don’t know it exists, behind all those new music harbors – Spotify, Google Play Music, Apple Music, iTunes Radio etc. Despite so many competitors, a considerable slowdown in user growth and a 30% fall in stock value, Pandora has impressive plans for its revenue generating business, including on-demand paid subscription service.
At the moment, Pandora covers around 10% of the music-streaming market. The company actively invests in new businesses, builds direct contacts with music companies (among which are promising deals with Warner Music Group and ATV Publishing Group). Pandora also now owns Next Big Sound (a music analytics service), Ticketfly (a concert ticket service) and some assets of Rdio (a former Spotify competitor).
Many people didn’t believe in the old giant Microsoft, especially after the appointment of new CEO Satya Nadella in February 2014. But Nadella has done a great job so far: due to his new company strategy, Microsoft stock prices have noticeably risen. In two years he managed to build partnerships with Salesforce and Box, Microsoft’s previously considered competitors. Nadella also suggested focusing on software and cloud services, which turns out to be beneficial for the company. Not to mention Nadella’s introduction of HoloLens and a free version of Windows 10.
Yahoo’ s new CEO Marissa Mayer is trying to save the company and completely change the platform we know it today. But for now, it hasn’t worked: share prices have fallen dramatically and several senior executives have already left the company. Yahoo’s Internet business is worth around $31 billion, which is equal to the company’s stake in Alibaba, and which makes this business meaningless in investors’ view.
Not surprisingly, some investors wish Mayer would leave the company, but she is actively supported by her board. They believe the reverse spin might help remind the world how valuable Yahoo is. In a year, we are very likely to see a completely new Yahoo, and that might bring great benefits to the company.
Some years ago, Linden Lab company founded a startup, known as Second Life and presenting a VR project.All this time, media and experts were trying to find out if there are any prospects of the web being replaced by virtual reality. Turned out, there was no big financial potential, besides many users soon shifted to other sites.
However, Second Life is still alive and doing great actually. With a million of users playing VR games and attending various events, the company is still making profits. Second Life found a way to earn money by taking cuts from their users’ sells of virtual content, using the virtual currency “Linden dollars”.
Besides, Linden Lab is currently developing other projects: Blocksworld (a kids’ iPad game), “Project Sansar”, a totally new VR platform.
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