What failed companies reveal about business strategy

What do Jelmoli, Depot and a small bakery from my region have in common?

They all represented a functioning business model until they went bankrupt. What they had in common: They didn't adapt their strategy, even though the framework conditions had long since changed.

We live in a constantly changing world. Experts refer to this as a VUCA world. This stands for volatility, uncertainty, complexity, and ambiguity. Leading a company in such an environment requires more than just a plan. It requires a business strategy that can be adapted specifically and remains flexible.

As a young ETH student, Jelmoli was, for me, a symbol of a world I didn't belong to. The luxury department store with its iconic facade was the place where you only shopped if you had "made it." Years later, that era is over. The building stands empty. Only the online shop remains.

Failed companies are not isolated cases. They are both a signal and a reminder of past business logic. They show you what really matters if you want to lead your company successfully in the long term.

What is VUCA and why does it affect your company?

VUCA describes the economic conditions of our time. It stands for:

• Volatility : Changes occur quickly and often unpredictably

• Uncertainty : Future scenarios are difficult to assess

• Complexity : Interactions in the market are increasing

• Ambiguity : Information is ambiguous and difficult to interpret

What used to remain stable for years can now change within a few months. New technologies, changing customer behavior, or geopolitical events have a direct impact on your business model—whether you run an SME or are a solo entrepreneur.

To illustrate, ChatGPT was launched in 2022. Just three years later, AI has become an integral part of every business, shaping our business models, processes, and work.

In a VUCA world, it's no longer enough to rely on tried-and-tested methods. What's needed is a business strategy that not only endures change, but embraces it as a constant and actively integrates it.

What you can learn from failed companies

Failure rarely happens overnight. It's often the result of decisions made—or not made—over months or years.

Many companies react too late to changing market conditions. They cling to a business model that worked in the past. They recognize that something is changing, but they fail to adapt their strategy in time.

The examples are diverse: Jelmoli relied on its strong brand for a long time. Depot reacted only slowly to the shift toward online retail. And the small bakery around the corner? It struggled with rising energy and raw material costs, a shortage of skilled workers, and increasing competition from large retailers who could produce more cheaply.

The lesson: If you don’t actively work on your business strategy, sooner or later reality will overtake you.

The biggest weaknesses in business strategies

Even established companies make strategic mistakes—and they repeat themselves surprisingly often. Here are three typical weaknesses:

1. Strategy as a one-off project

Many companies develop a strategy and then let it disappear into a drawer. It's not implemented in everyday life: decisions are driven by operational pressure rather than clear prioritization.

2. No connection to the business model

Strategy and business model belong together. Those who continue to pursue an outdated model risk rendering even the best strategy ineffective. Conversely, without a clear strategy, even a strong model will stagnate. Further development requires both substance and direction.

3. Lack of regularity

Strategy work often only occurs when the problem is already acute. Regular reflection is crucial for identifying developments early and responding in a targeted manner.

What a strong business strategy needs today

In a dynamic environment, you don't need to constantly reinvent your strategy. On the contrary, that would be counterproductive. But you do need to consciously evolve it. Three things are crucial:

1. Focus on adaptability

Instead of rigid structures, we need room for adaptation. Good strategies can withstand change because they are flexible and enable conscious learning.

2. Strategy rhythm

Strategy work shouldn't be an exception. A consistent schedule will help you identify patterns before they become problematic. Consciously schedule time for this once a quarter.

3. Clarity in the business model

Ask yourself regularly: Is my offering still relevant? Is the price and positioning right? Are my customers' needs changing?

This allows you to adapt your business model in a targeted manner without losing the heart of your company – your offering, your values and your positioning.

Business model explained simply – and what you can adapt

A business model describes how you create value, communicate, and generate revenue with your offering. It is the foundation of your business strategy—not a rigid construct.

If you notice that your sales are stagnating or you no longer know where the leverage lies, that's a sign to take a look:

• Has your target audience changed?

• Has the market changed?

• Does your offering need to be sharpened or expanded?

• Are you still using the right channels to reach customers?

• Does your pricing model match today's perception of your value?

Strategic adaptation doesn't mean "rebuilding everything." It means consciously deciding what stays, what goes, and what needs to be added.

In principle, it's similar to clearing out your closet – only with a much greater impact.

Conclusion: Strategic leadership means remaining flexible

Failed companies demonstrate what happens when you don't move. They make visible what has been invisible for too long: yesterday's success is no guarantee for tomorrow.

In a VUCA world, you don't need a perfect strategy. You need one that you regularly review, consistently embed, and flexibly develop.

Because entrepreneurial thinking today is not characterized by security, but by adaptability.

If you want to shape your business consciously, you need clarity about your course.

So you can do the right thing right.

With the Strategy Check, we lay precisely this foundation: In 90 minutes, you'll identify your strongest levers, gain confidence in your decisions, and clearly align your company with what's important to you. Interested? Contact me for more information about the Strategy Check at hallo@noemithum.com .