Video sharing service Vine shot to success after its debut in 2012, fulfilling the demand for short, snappy video content as mobile internet was speeding up and many brands were shifting towards short burst video content.
Unfortunately, while the company had achieved desirability and feasibility, it fell behind on sustaining the business viability of its product. Vine reacted too slowly to market developments, including the rise of Instagram and Snapchat, and never provided brands with the means to advertise on its platform. The company was even slow to offer sponsorship solutions in-app. And so began Vine’s demise: its owner Twitter pulled the plug on the service in 2016.
Design Inc. is another useful example of a failed company that neglected that all-important third pillar of business viability. Design Inc. was a design company on a mission to create a marketplace that helps companies and individuals find great designers. While the company had a lot of positive customer feedback on the platform itself, they were stuck without a good business model and found it impossible to capture revenue due to a “limited market to attack.”
RethinkDB had both a good idea and technical model with its open-source scalable database for the real-time web, the first of its kind. However, the company failed due to its venture into the market of open-source developer tools -- when software developers love building similar tools for free. So, while the product was good and in-demand, few people were willing to pay “more than the price of a Starbucks coffee” for a lifetime membership.
Another reason for RethinkDB’s demise was measuring the wrong metrics. This is a crucial element of BD: Companies need to make sure they’re measuring the metrics that users actually care about. Instead of focusing on timely arrival or palpable speed, RethinkDB channeled its efforts into perfecting and measuring the correctness of the database, interface simplicity, and consistency -- which actually turned out to be metrics that users were willing to trade off.