Netflix, one of the world’s top streaming entertainment providers, started in 1998 as a company that allowed consumers to rent and buy physical DVD movies. IBM’s spirit of reinvention continues with its 2020 decision to split into two companies, one that is focused on cloud computing and artificial intelligence and one that provides managed IT services. Instead, IBM would focus on software, IT consulting services, and computing research, and this move brought the company back to profitability and improved its reputation. To turn the company around, executives made the bold decision to abandon hardware areas such as computer chips, hard drives and printers. In 1993, the company posted a staggering $8 billion quarterly loss. But in the early 1990s, the company had to change course because its hardware business faced steep competition. IBMįor much of its history, IBM had been one of the world’s top manufacturers of computing machines, computer equipment and mainframes. One of the strangest business pivots ever might be that of the popular children’s modeling clay Play-Doh, which was first sold as a cleaner that could remove coal residue from wallpaper in the 1930s. It notably created the Pyrex durable cookware line, optical fiber that paved the way for internet telecommunication adoption and the hard-to-break Gorilla Glass used on technology products such as the Apple iPhone, iPad and Watch.
The company continued to innovate and reinvent what it could do with glass. CorningĬorning, a world leader in glass, ceramics and industrial material manufacturing, initially found success in the mid-to-late 1800s by mass-producing glass for Thomas Edison’s light bulbs. Chipotle launched its 100th Chipotlane in July 2020, and it intends to hire as many as 10,000 new workers to support this new initiative. However, in 2020, the company has significantly invested in high-margin drive-thru pickup lanes that it calls “ Chipotlanes.” These drive-thru lanes exist primarily for mobile pickup orders, which means more customers can be served in a short amount of time, and it caters to customers concerned about COVID-19 because they don’t have to go into the store. Chipotle has long been known for its counter-service approach, where customers walk in and order custom burritos, bowls, tacos and other items. One of the most recent major business reinventions - that of fast-food player Chipotle Mexican Grill- occurred during the COVID-19 pandemic. As of December 2019, the company had more than 110 million credit cards in use, including about 55 million cards in the U.S. However, in the mid-1900s, American Express reinvented itself and what it was best known for by offering a charge card that extended credit to consumers and businesses.
Throughout the late 1800s, the company added money orders and traveler’s checks to its portfolio. American ExpressĪmerican Express, a financial services giant, was founded in 1850 with an emphasis on express mail, where it transported valuable goods, stock certificates and currency throughout its home state of New York and later other states. Later, in 2006, Amazon began offering cloud computing services that today lead the industry. The third-party marketplace, combined with Amazon directly selling more than just books, made Amazon the go-to online retailer. In 2000, Amazon launched its Marketplace so third parties could also list items online, which dramatically increased Amazon’s selection and revenue. When Amazon went public in 1997, there was little indication it would eventually dominate e-commerce and cloud computing, as it does today. This approach was moderately successful, with Amazon carrying more than 2.5 million different book titles.
When operations began in July 1995, it promoted itself as “Earth’s Biggest Bookstore,” and focused on competing with sizeable in-store book retailers such as Barnes & Noble and Waldenbooks. AmazonĪmazon, one of the world’s highest-valued companies, originally started as an online retailer for physical books. Here are 10 massively successful companies that reinvented their core businesses. Over the years, many of the nation’s largest companies reinvented how they operated, whether they changed core services, types of products they manufactured, target audiences or distribution strategies. While the COVID-19 pandemic has sparked many recent conversations about companies pivoting into new areas, there is a long history in the United States of businesses radically changing strategies to find success. From Play-Doh to Netflix, many companies required radical pivots in order to grow and succeed in the business world.
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