What can we learn from the disintegration of MySpace – just five years ago a media darling and now in the tech industry’s dustbin? It would be easy to blame the fall on inept management, except that the company’s leaders clearly were not dumb.
Rather, the seeds of demise were laid in the company’s using four traditional approaches to business in a new market where rapid change required different thinking:
Ultimately, MySpace fell victim to hubris. Chasing after market leadership, it moved too fast, too confidently, and too traditionally. Facebook was more focused, adaptable, and open to fresh thinking. With a market value now roughly 2,000 times that of MySpace, Facebook has proven the value of using new rules in new markets.