Facebook, Apple, Amazon, Microsoft: Which company fails first?

Author : Dinesh Babu B

facebook amazon google microsoft

In the history of mankind, no company is at peak always. Many great companies face a downfall and fail miserably. We all remember Nokia, Blockbuster, Kodak, General Motors and many others that went bankrupt.

In this Digital age, only a few companies are ruling the digital sector. Facebook, Apple, Amazon, and Microsoft are four big companies which are giant in their respective fields.

No one will ever imagine that these companies will fail. But nothing is certain in the business world. If time changes, anything can happen.

But the question here is which company fails first? The answer to this question is based on many factors like consumer interest, market demand, company value, etc.

Someone asked the same question in Quora, and a data scientist Håkon Hapnes Strand gave a wonderful answer with good explanation. Here is his answer.

High risk:

  • Facebook. Relies on a single product that only works if it can retain its user base of billions of people. There are already signs that the general public is losing interest. It will take time for that many people to disappear, but once it gains momentum, Facebook could potentially fall until it reaches the bottom.
  • Apple. Has an incredible revenue stream, but depends on a line of overpriced consumer electronics that is becoming extremely expensive compared to competing products that are at least as good. Apple has failed to innovate in the last decade and has a secretive walled garden business model that seems out of place in 2019. If someone else disrupts mobile phones, Apple will fall hard. Remember Nokia?

Medium risk:

  • Google. The core product is extremely solid and has no real competitors. On the other hand, Google has failed to diversify despite numerous efforts. Google Cloud is making money, but not on the scale of Azure and AWS.

Low risk:

  • Amazon. Has been able to diversify successfully where Google haven’t, the prime example being AWS. And Amazon’s physical stores is now its fastest growing segment.
  • Microsoft. The most diversified of the bunch. No single revenue stream accounts for more than 25% of the total. Azure is still growing rapidly, although the growth has slowed down somewhat in the last year. With an improved leadership and engineering culture, Microsoft looks solid.

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