
It’s hard to watch an individual or company fail.
When you study success and failure for as many years as I have, seeing failure in motion is a painful thing to witness.
For years I have been watching my favorite bookstore, Barnes and Noble, fail. Their path to failure has been so obvious to me, it hurt.
First, their fast asleep management did not see Amazon coming, until it was too late. Amazon very quickly gained control of the on-line book retail sector, while B&N was expanding their footprints in malls and colleges around the world, oblivious to what was going on within their very own industry.
Second, their business model attached itself to the hip of traditional publishers, ignoring the rapidly expanding self-publishing industry, which Amazon happened to be embracing.
B&N hasn’t gone under yet. It is desperately pivoting, shifting its focus away from bricks and mortar and to online sales. It is also playing catch up with Amazon by selling more and more books from self-published authors, both on-line and in its retail outlets. But the damage has been done and, I believe, failure is just a question of when, for B&N.
In hindsight, it’s easy to play the Monday-morning quarterback and criticize companies for their historically bad business decisions. It’s quite another thing, a great skill in fact, to identify failure as it is happening. And right now, we are witnessing failure in motion – at Facebook. [Read more…]






