The "Dead Horse Theory" suggests that companies should disengage from failing projects to avoid wasting resources. Kodak and Blockbuster serve as prime examples; both companies failed to adapt to industry shifts—Kodak to digital photography and Blockbuster to streaming services. Their reluctance to pivot ultimately resulted in bankruptcy and downfall. Similarly, smaller-scale project failures, like Amazon's Echo and multi-billion dollar losses, illustrate how businesses can hemorrhage resources if they cling to unviable products. Recognizing when to dismount from a dead horse is essential for sustainable success.
One company that fell prey to the Dead Horse Theory is Kodak, which failed to pivot to digital photography, ultimately leading to bankruptcy in 2012.
Blockbuster's inability to recognize the shift in the market towards streaming ultimately led to its downfall, highlighting the risks of ignoring clear signals.
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