In response to changes in consumer demand and the overall business environment, many companies are choosing to pivot into new areas. While pivoting may seem like a recent trend, the United States has a long history of companies fundamentally changing their strategies to achieve success. Over the years, many of the nation's largest companies have reinvented the way they operate, changing their core services and products, target audiences, and distribution strategies.
Here are 13 companies that reinvented their core businesses and achieved huge success.
[Read more: 10 Essential Things Successful Businesses Have in Common. Does Yours?]
Amazon
Amazon, one of the world's most valuable companies, originally started as an online retailer of physical books. When it began operations in July 1995, the company advertised itself as “Earth's Largest Bookstore” and focused on competing with large brick-and-mortar bookstores such as Barnes & Noble and Waldenbooks. This approach has had some success, with Amazon carrying over 2.5 million of his different book titles. When Amazon went public in 1997, there was little indication that it would eventually dominate e-commerce and cloud computing as it does today.
In 2000, Amazon launched a marketplace that allowed third parties to list products online, dramatically increasing Amazon's selection and revenue. The combination of third-party marketplaces and Amazon's ability to sell products other than books directly has made it the go-to online retailer. Then, in 2006, Amazon began offering cloud computing services and continues to lead the industry.
That same year, the company launched the Amazon Kindle, which sold out in less than six hours when it went on sale in November 2006. Over the next decade, Amazon continued to diversify its portfolio, acquiring major companies such as Audible and Whole Foods, while also launching new services such as Amazon Instant Video and brick-and-mortar stores. As of Q4 2022, the online retailer boasts a net worth of $460.98 billion.
american express
Financial services giant American Express was founded in 1850 with a focus on express mail, transporting valuables, stocks and currency throughout its home state of New York, and has since expanded to other states. Throughout the late 1800s, the company added money orders and traveler's checks to its portfolio. But in the mid-1900s, American Express reinvented itself and reinvented what it was best known for by offering charge cards that extended credit to consumers and businesses. As of 2022, the company had over 133 million credit cards in use across the United States and internationally.
chipotle pepper
One of the major recent business shakeups for fast food company Chipotle Mexican Grill occurred in 2020. Chipotle has long been known for its counter-service approach, where customers come in and order custom burritos, bowls, tacos and more. item. But in 2020, the company invested heavily in high-margin drive-through pickup lanes it calls Chipotlanes. These drive-thru lanes exist primarily for mobile pickup orders, allowing you to serve more customers in less time.
In November 2022, the fast-casual eatery opened its 500th Chipotle Lane, citing its importance to Chipotle's long-term strategy. Chipotle continues to grow rapidly and consistently, and by 2023, he expects to open 250 new restaurants and create 7,000 jobs. In addition, he plans to open another 285 to 315 restaurants in 2024.
corning
Corning, a world leader in glass, ceramics, and industrial materials manufacturing, first found success in the mid-to-late 1800s by mass producing glass for Thomas Edison's light bulbs. The company continued to innovate and reinvent what can be done with glass. In particular, it created the Pyrex line of durable cookware and fiber optics that paved the way for the adoption of Internet telecommunications.
In 2010, Corning developed its proprietary Synthemax, an animal-free surface that can be used for stem cell culture. The following year he acquired Mediatech, Inc., and the year after that he acquired much of the Discovery Labware business. But Corning is perhaps best known for developing break-resistant Gorilla Glass, which is used in technology products such as the iPhone, iPad, and Apple Watch. Corning's continued partnership with Apple has led to new advances such as Ceramic Shield, which is designed to be stronger than previously existing smartphone glass.
IBM
For most of its history, IBM has been one of the world's leading manufacturers of computing machines, computer equipment, and mainframes. But in the early 1990s, the company was forced to change direction as the hardware business faced intense competition. In 1993, the company posted a staggering $8 billion quarterly loss. To rebuild the company, management made the bold decision to abandon hardware, including computer chips, hard drives, and printers. Instead, IBM focused on software, IT consulting services, and computing research, a move that returned the company to profitability and improved its reputation.
IBM's spirit of reinvention continued in its 2020 decision to split into two companies: IBM, which focuses on cloud computing and artificial intelligence, and Kyndryl, a new company that provides managed IT services. Although Kyndryl initially faced losses and affected its parent company in the process, IBM remains an industry giant, with a brand value of over $87 billion as of 2023.
Netflix
Netflix, one of the world's top streaming entertainment providers, was founded in 1998 to allow consumers to rent and purchase physical DVD movies. The company added a subscription service in 1999 that allowed people to rent as many DVDs as they wanted and receive the rentals by mail. After achieving great success with physical DVD rentals, management decided in 2007 to move away from physical media and focus on streaming content that can be accessed instantly over the Internet.
Netflix's decision to invest in streaming and de-emphasize DVD rentals changed the entire entertainment landscape. In 2022, a Nielsen study found that streaming services will have more viewers than cable TV or broadcast TV. Since launching its streaming service, Netflix has only expanded its offerings, acquiring streaming rights to movies from major companies like Sony and DC. Currently, the company's value is more than $ 210 billion.
But in the mid-1900s, American Express reinvented itself and reinvented what it was best known for by offering charge cards that extended credit to consumers and businesses.
playdoh
One of the strangest business axes ever may be that of Play-Doh, a popular children's modeling clay first sold in the 1930s as a cleaner that could remove coal residue from wallpaper. As oil and gas furnaces became more popular in the 1950s, demand for the product decreased and manufacturers considered going out of business. The owners heard that school teachers in their hometown of Cincinnati were using the clay in arts and crafts classes. Realizing the potential of children's toys, the company quickly pivoted to more colorful products. By the late 1950s, clay had become a toy available in stores across the country. Play-Doh is now owned by Hasbro, whose product has sold over 3 billion cans.
[Read more: 10 Key Talents Most Great Entrepreneurs Have]
slack
Slack, the popular business collaboration and chat application, started as a company called Tiny Speck, which created a computer game called Glitch. The game itself was a huge failure and was shut down in 2012. But part of the game's appeal was the interactive and colorful chat feature used by players and employees. He launched the Slack app in 2013 after Glitch was officially shut down and his team realized they had a powerful collaboration tool. Slack grew quickly and went public in 2019. The company has over 169,000 paying customers in his 2022 and boasts about 20 companies. In 2023 he will reach his 1 million daily active users.
Starbucks
When the highly successful coffee chain Starbucks opened in the early 1970s, a few Seattle stores sold only coffee beans and coffee-making equipment. Howard Schultz, former Starbucks director of marketing and retail operations, persuaded Starbucks' owners to make changes by selling the company to him and several investment partners. Mr. Schultz converted the store into a coffee house, where customers could purchase prepared coffee as well as beans. The company grew under Schultz's leadership, but Schultz eventually stepped down as chief executive in 2000. Schultz then restructured the company again when he returned as CEO in 2008. In his second stint as CEO, Schultz pushed Starbucks to adopt technology to better engage with customers. — He recently retired and will continue to be “President Emeritus for Life.” Currently, the Starbucks app is the most regularly used loyalty rewards app among major restaurant chains.
YouTube
YouTube, the video streaming service owned by Google, is one of the most visited websites in the world, with billions of videos watched there every day. However, the site was started in 2005 by co-founders Jawed Karim, Steve Chen, and Chad Hurley as a dating site. They even advertised that he would pay people $20 each to post videos of themselves. This approach failed, but the site's users started posting videos they wanted to upload, so the founders embraced the idea. They improved his website and made it easy to upload almost anything. Google acquired the site in November 2006 for his $1.6 billion in stock. As of June 2022, users are uploading over 500 hours of video to the site every minute.
apple
When Apple was founded in 1976, it primarily sold top-of-the-line personal computers and achieved market success. But by the 1990s, the now technology giant was on the verge of bankruptcy. When Steve Jobs returned in 1997, Apple focused on innovating and designing new products, including his iMac. This sophisticated computer was an immediate success and launched the company into a new era of growth.
From the iPod to the iPad to the now ubiquitous iPhone, Apple has developed a variety of new products for its growing customer base over the years. We continue to build products and services with new technologies, features, and design elements. Currently, Apple is still a major player in the market, and in fiscal year 2023 he reported net income of nearly $97 billion.
general motors
Automaker General Motors (GM) was founded in 1908 and has dominated the industry for decades. However, increased competition from foreign manufacturers ultimately led to a bailout in 2009, after which the company went bankrupt. GM downsized and reorganized, reemerging as a public company in 2010 and regaining its position as the nation's top automaker. Under current CEO Mary Barra, the company continues to make profits by investing in new technologies such as electric and self-driving cars.
Lego
Lego was born during the Great Depression, when master carpenter Ole Kirk Christiansen introduced the wooden toys. The company began manufacturing his plastic bricks in 1949 and completely discontinued manufacturing wooden toys in the early 1960s. Lego continued to expand its product offerings over the decades, including theme parks and a new product line based on the brand-funded TV show “Galidor,” but eventually faced financial difficulties in the 2000s. did.
With the company in crisis, Lego refocused its business to return to its core product line. Lego began creating products based on this core, including sets based on popular television and movie franchises and video games featuring Lego characters. The company has regained popularity and profitability and is now the world's third largest toy manufacturer, selling products in more than 130 countries.
This article was originally written by Sean Ludwig.
CO— aims to provide inspiration from leading and respected experts. However, before making any business decisions, you should consult a professional who can advise you based on your personal circumstances.
CO – is committed to helping small businesses start, operate and grow. Learn more about the benefits of small business membership with the U.S. Chamber of Commerce.
issued
