Over the years we have witnessed the rise and fall of famous businesses. Numerous scandals, controversies and abuse of power led to a damaged reputation and a ruined image.
There have been plenty of giants on the market who seemed to have conquered it, however sooner or later their business decisions and approaches cost them everything.
Let’s take a close look at the companies which peaked, but soon fell high from their grace.
In case you’re not familiar with the company, Motorola was the cellphone firm which developed the popular Rzar phone.
They were on the top of their game, making billions and owning more than 20% of the market.
However, when they failed to come up with a new cellphone, their competitors, iPhone and Blackberry, already started to rise to fame and the company was soon split.
The decline of the camera film and the development of technology caused Kodak to file for bankruptcy.
They were once the biggest players in the field, making billions, but its competitors moved faster and adapted better to the market’s needs and requirements.
3. American Motors
The company started to slowly lose ground in front of its competitors in 1960. And eventually in the ’80s American Motors was bought by Chrysler due to the popular and successful overseas vehicle makers and the bad economy which was affecting the sales.
The company was known for producing car tires and was on its peak until it came out that the rubber came off the tire when the it was used.
Even though this is a serious safety concern, Firestone kept producing them until the Government and consumer groups intervened.
Initially, the company blamed the consumer, however it was discovered that the company was at fault and they knew about the issues for quite some time.
This led to a lawsuit and later the company was bought at an auction by Bridgestone.
Even though Facebook is still active on the market, the controversies from 2016 regarding the privacy of the users led to huge scandals and mistrust of the people.
In case you forgot or weren’t familiar with what happened, Facebook gave access to Cambridge Analytica in 2016 (ahead of the presidential election) to the user’s person in order to obtain psychological profiles of the voters.
And it was revealed in 2017 that Russia paid Facebook $100,000 for ads that were spreading propaganda whose purpose was to influence the voters in the upcoming election (and succeeded).
Even though there were trials and hearings and the company was fined with billions of dollars, Facebook still runs to this day, but the trust is lost and their image damaged.
The famous vehicle company intentionally falsified diesel powered cars in ordered to cheat and deceive the regulators.
At first, Volkswagen denied, however the truth surfaced later and it resulted in the biggest case of corporate fraud in history.
The scandal led to criminal charges, lots of fines, dismissals and a tarnished name.