Will the new year bring new beginnings and improved circumstances too?
There were certain companies that faced quite some problems in 2019, some of them being very famous ones. All of these companies aim to revamp and redeem themselves in the new year. Will that be possible? Only time will tell.
By HARDIK GOEL | 6 min Read
According to Chinese zodiac, 2019 was the year of the pig, which usually means a spirit of relaxation and enjoyment. It’s unlikely to say though, that all brands enjoyed a happy, prosperous 2019. Many underwent significant changes; while other faced challenges from category disruption and stiff competition. However, 2019 proved to be a bumpy ride for these companies due to various hurdles.
TATA MOTORS
Indian automobile maker Tata Motors has watched stocks drop this year amid low sales, downgrades by ratings agencies and a crisis in its British unit, jaguar Land Rover ,which it bought out in 2008. In July, it posted its 1st quarterly loss for nearly 3 years, partially because of Jaguar’s decreased sale of luxury cars in China. Jaguar Land Rover (JLR) has also cut thousands of jobs in 2019 as a part of a $3.16 billion turnaround . JLR, that has been hit by decreased diesel demand and costly Brexit preparations, posted a $113.8 billion loss in the third quarter and it's already shed one 1,000 jobs in UK.
DEUTSCHE BANK
It seems that in 2019 Deutsche Bank, Germany's largest, was in a terrible shape. In addition to a series of CEOs making an attempt, and for the most part failing to cut prices, revenue has continued to drop. Meantime officers round the world are inquiring its alleged role in numerous money-laundering schemes. In October, it reported PBT of $577.5 million for the third quarter of 2018, down from $1.06 billion last year. Since the CEO assumed the role earlier this year, the bank has axed 2,300 jobs and aims to cut another 4,700 by next year.
HUAWEI
Chinese consumer tech giant Huawei may be the second-biggest smartphone maker within the world, however it's been stung by fears over risks related to its network infrastructure. unlike other huge Chinese tech companies, the corporate does most of its business overseas. However, U.S. intelligence agencies claim its equipment may contain "backdoors" for use by government spies. The U.S., Australia and New zealand have already prohibited it from future 5G networks, with other countries considering doing the same. Another threat to the business is the recent detention of its CFO Sabrina Meng Wanzhou over alleged bank fraud in relation to breaching U.S. sanctions on Iran. The arrest caused shares of the smartphone maker to plummet.
NETFLIX
Customers’ love for Netflix might soon be tested. The direct-to-consumer streaming video segment is getting awfully huddled with Amazon, Apple, and other tech giants growing their content businesses whereas new media players as well as Disney and Warner Media are also giving a rough competition . And since Netflix has been burning money at an annual rate of $3 billion, it has limited it’s ability to fight for expensive content or valuation war. As a business, Netflix should still have plenty of growth potential, however as a brand, it should realize itself competing against more attractive suitors.
The Bottom Line
Although 2019 didn’t go as prosperous as these companies might have expected, the year 2020 might give them a chance to redeem themselves and once again rise up to become giants in their respective fields.