10 Successful Companies That Changed Their Business Model

Some companies face compelling circumstances that make them change their business model to another form completely in order not to face the specter of death, or they decide to adapt to the needs of the market and customers. Here are ten companies that have changed their business model and achieved great success:

1 – Slack

Slack, the popular persistent chat app for employees and companies, started as an internal tool for a company called Tiny Speck, which made a game called Glitch.

Due to the failure of the game in 2012, they decided to close it, but they noticed that the chat feature used by players and employees can benefit from it again, so they decided to launch the Slack application in 2013 until it became the most popular application used by 12 million active users daily, and the company launched for subscription in the stock market in 2019.

2 – Avon

David McConnell started Avon in 1886 as a company that delivered books to customers’ homes, and in order to encourage women to buy, he would give a gift of perfume with every book sold.

David noticed that perfume was becoming more popular than the books he was selling, so he decided to switch from selling books to perfume; Today, Avon has become one of the largest companies that sell perfumes and cosmetics.

3 – Amazon

Amazon started its operation in 1994, as an online retailer of books and delivers them to customers, and ranks itself as the largest bookstore in the world in fierce competition with famous bookstores such as Barnes & Noble, with sales of 2.5 million books.

Nevertheless, the company decided to change its business model by entering e-commerce and cloud computing systems, instead of defining itself as a mere bookstore.

Today, Amazon is one of the largest companies in the world in terms of sales and market value, and dominates the sale of everything.

4 – Netflix

Netflix started in 1997 renting DVD movies and mailing them to users on a monthly subscription, being Blockbuster’s biggest competitor.     

In 2007 the company decided to stop renting DVDs and move entirely to live streaming on the Internet; Because it saw that expansion is associated with reaching a large segment of people at a low cost, and this is only through the Internet.
Today, the company’s market capitalization is more than $180 billion, with more than 200 million subscribers worldwide, and it has become one of the fastest growing companies.

5 – American Express

American Express began in 1850 as an express delivery of parcels and merchandise for financial companies.

Because of her continuous contact with banks and financial companies, she decided to transform from a delivery company to a company that provides financial, banking and credit services, and today it has become the largest in its field.

6 – my leg

When Willem Ragley founded his Wrigley Soap Company in 1891, he was giving away free gum to his customers. .

7 – Colgate

Colgate Company began its work in 1806 as a company that sells soap and candles, but it faced fierce competition in the sale of these products in the market, until it decided in 1873 to manufacture an innovative product, toothpaste, which received strong acceptance and approval from people, so the company abandoned its previous products and specialized in the manufacture of toothpaste .

8 – Flickr

Founded in 2004 and specialized in hosting images, Flickr started as a side-chat service in support of an online game, where players could use the chat service to discuss and upload images.

After that, the company decided to cancel the game, and allocate the site to upload pictures with a space for chatting, and the site was very popular, and the number of its users reached more than 86 million users in 2013, with the acquisition of Yahoo.

9 – Nintendo

The Japanese company Nintendo, which was founded in 1889, was one of the most companies that changed its business model several times, starting as a company that sells traditional Japanese playing cards, then turned into a hotel chain, then a taxi company and a television network, until it settled in 1974 to become a company specializing in the manufacture of games the video.

Today, the company is considered one of the largest global companies in the electronic games industry, with annual profits of $1.5 billion.

10- Samsung

The Korean company Samsung was founded in 1938 as a company that sold foodstuffs and dried fish. In 1970, the founder of the company, Ie Byung-chul, decided to transform into a company specializing in the electronics industry after seeing an opportunity with the development of the country.

Today, Samsung has become one of the largest electronic companies in the world with a valuation of $ 420 billion, specializing in the manufacture of electronics, semiconductors and advanced technologies.      

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