As the days/layoffs progress, it is interesting to watch the state of two formerly powerhouse [and to be fair, still powerful, just less so] Online firms, both with top-shelf names in the global brand arena.
With their ‘Models’ in question, revenues plunging, employees leaving en masse [willfully or not], I cannot help in my mind but to join at the hip, the current states of being at both AOL and MySpace. I don’t know why, other than maybe timing. Although both come from different times/different places, both have brought in [what they hope to be] game-changer CEO’s, and the going is proving quite difficult.
Both were ‘it’ firms at one point, both have huge Brand legacies, both are now struggling to adapt & adjust to new revenue sources. Both are fading. What is interesting to me, is, in the Online world, there often is no recovery, no coming back. Why is that? To me, the Web is essentially at this point in time, an extremely visible version of Schumpeter’s Creative Destruction concept, writ large.
If you are, say Alcoa Aluminum, Oracle Software, or heck, even Intel…you can have your ups & downs, struggle, adapt, survive. Lose $2Bn last quarter? Shift things around, add a new product line, adjust your staff, boom. Next quarter [or next year] you are back to 12% y/o/y growth again. No, it’s not quite that easy, of course. But those firms DO come back.
How many do in the Online world? Maybe Michael Arrington of TechCrunch, and others, have it right with their ‘DeadPool’ concept. I notice that they don’t also have a ‘Revived Pool’ or a ‘Hey, You Made it Back from the Brink Pool’.
As those on the Sales side also ponder our futures, and the role we will play in securing & achieving Revenues for our firms going forward, these are items we should be paying attention to.