Learn from Others’ Failures and Take Protective Measures: A Strategic Imperative for Every Business

In a world where change is the only constant, business history is filled with giants who once ruled industries—Kodak, Nokia, Enron—only to later crumble. Yet amidst their fall, other organizations rose stronger by learning not only from their own challenges but also from the failures of others. In today’s hyper-competitive business environment, studying failure is as important as celebrating success.

Why Companies Fail: Lessons from Kodak, Nokia, and Enron

1. Kodak failed because it ignored digital photography, a technology it ironically invented. Fear of cannibalizing its film business blinded it to future opportunities.

2. Nokia lost ground by underestimating the smartphone revolution, sticking to outdated platforms and lacking software agility.

3. Enron, once an energy empire, collapsed due to ethical lapses, financial fraud, and a toxic culture of arrogance.

These are not just stories of companies—they are warnings. Warnings that success today can breed complacency tomorrow if businesses don’t constantly evolve, stay humble, and lead with integrity.

How Smart Companies Took Protective Measures

Let’s look at companies that observed these failures and made deliberate, strategic shifts to protect their future.

✅ Apple: Disrupt Yourself Before Others Do

Apple learned from Kodak that waiting too long to change kills innovation. They replaced their own successful iPod with the iPhone, understanding that self-cannibalization is better than external disruption. They continue to prioritize innovation, customer experience, and design as protective shields.

✅ Microsoft: Reinventing Culture to Drive Transformation

Under Satya Nadella, Microsoft transitioned from a “know-it-all” to a “learn-it-all” culture. Their acquisition of Nokia failed, but they pivoted fast, focusing on cloud, AI, and collaboration tools. Nadella’s leadership proved that culture eats strategy for breakfast.

✅ Netflix: Embrace the Future Now

Netflix didn’t wait to be disrupted. They moved from DVDs to streaming, and then to original content. They act on the principle that whoever gets to the future first, wins.

✅ Unilever: Ethics as Strategy

Unilever took note of Enron’s demise and embedded purpose, ethics, and transparency at the heart of its business. In an age of ESG (Environmental, Social, Governance) awareness, doing good is good business.

✅ Toyota: Empowerment and Kaizen

Toyota’s model of continuous improvement (Kaizen) and respect for people has helped it weather numerous storms. Its people-first culture ensures that every problem becomes a learning opportunity.

Summary Table: Companies That Learned and Protected Themselves

Company

Learned From

Protective Measures Taken

Apple

Kodak

Cannibalized own products, constant innovation

Microsoft

Nokia

Culture change, cloud-first strategy

Netflix

Blockbuster

Shifted early to streaming and content creation

Unilever

Enron

Ethics, governance, and sustainable business practices

Toyota

Many failures

Empowered teams, built a learning organization

Islamic Reflection: Preparing for Tomorrow

Islam teaches us to be proactive, humble, and accountable—principles that directly apply to business strategy.

• “O you who believe! Fear Allah, and let every soul look to what it has sent forth for tomorrow.” (Surah Al-Hashr 59:18) Just like individuals, organizations must prepare for the future with foresight and integrity.

• Umar ibn al-Khattab (RA) said: “Take account of yourselves before you are taken to account.” Businesses must build a culture of internal auditing, ethical reflection, and self-correction.

Takeaway: Build a Learning and Protective Organization

To thrive in an unpredictable world, leaders must:

• Study not only best practices but also worst-case scenarios.

• Encourage a learning culture across all levels.

• Build systems that allow agile pivoting when the market shifts.

• Instill ethical guardrails to prevent reputational collapse.

• Embrace self-disruption and innovation to stay ahead.

The wise learn from their own mistakes. The wiser learn from others’. Be the wiser.