by Aahana Khemani
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”
Charles Darwin said. Like various aspects of life, companies have growth and downfalls too. In this article, we will be analysing the changes and evolution of three massive companies that started out as mere ideas. Netflix, Amazon, and Google.
It’s clear that Netflix has evolved since it started. In April 1998, Netflix started letting people rent out DVDs via physical mail. However, a year later they changed their rent and use plan into a subscribe and use plan. Around 10 years later, they changed their plan to a streaming service. Netflix is quite clearly a dominant streaming platform, as it generated $11.7 billion, and served 125 million customers in 2017! Therefore, what was Netflix’s initial business model? During the time software engineers Reed Hastings and Marc Rudolph founded Netflix in 1997, video rental stores monopolized the home entertainment market. Reed Hastings was exasperated by the fact that the market was not customer-friendly. The market would charge users extra for late returns. However, they saw an opportunity to run Netflix differently. Ofcourse, it came with its hardships. However, that’s when Netflix started renting our DVDs through mail. This was a huge game changer, in this market! Netflix shows us what the power of determination and passion can do!
As unbelievable as this may sound, Amazon was initially launched in Jeff Bezos garage! Jeff Bezos and his first couple of employees, would pack up books and take it to the post office. Many claimed that Amazon would fail and go bankrupt due to competitors. However, it definitely did not fail. Let’s take a look at Amazon’s timeline. Jeff Bezos had initially started Amazon with $10,000 on 5th July, 1994. On 11th June, 1998 Bezos expanded Amazon from a book retailer to selling CDs and DVDs. Just one year later, Amazon took a step towards going digital! After which, in upcoming years, Amazon launched its own products! Such as the Kindle, and Echo. Finally, in 2018, Amazon reached a $1 trillion market cap! Going straight from a garage business to having a $1 trillion market cap is absolutely wonderful! Despite the ups and downs that Amazon has had, it has only reached where it is because of its perseverance.
Google is quite the monopoly in its field. Nonetheless, what is the story behind Google? Google was launched by two Stanford students, Larry Page and Sergey Brin during the year 1998. Similar to Amazon, Google was founded in a rented garage. After a couple of years, in 2004, Google went public with shares priced at $85. Meanwhile, Google bought YouTube for $1.65 billion! It’s safe to say that Google has launched a bunch of products such as Maps, Gmail, Chrome Internet Browser, and much more! Google’s ambition to expand has really come in handy!
In conclusion, all successful companies and businesses are bound to have a couple of downfalls, but it’s these virtues (determination, passion, perseverance, ambition, etc.) that help grow!