In 1841, an Englishman convinced a railway company to run a special train, between Leicester and Loughborough, for a large group of people.
It was probably the first-ever publicly-advertised excursion train in England.
Trains were still very new at that time. And so was the fascination of people - for travel.
So, within three years, by 1844, this man was organising affordable excursions – or sightseeing tours – by negotiating good deals with railway companies.
Then, during the Paris Exposition of 1855, he went a step further. He took many travel enthusiasts, out of a balmy Britain, by ship, across the channel, to see a fascinating France.
Next year, in 1856, he was leading a big group of Britons on their first Grand Tour of Europe.
Such was the enthusiasm of this man that he took up ticketing agencies, employed tour guides, made deals with hotels and soon his business boomed.
With his son joining him soon, our man Thomas Cook made his company into one of the busiest businesses in Britain. And he was soon organising tours all across the globe.
But, sadly, this week, the journey of this iconic 178-year-old company, called Thomas Cook, suddenly came to a grinding halt, as it announced its bankruptcy.
Of course, the company is no longer owned by his grandchildren or family. But it is a very tragic end to the once-reputed company. And, sadly, it is taking down with it, many of its stakeholders.
600,000 customers of Thomas Cook are now stranded in different places on the globe. And Britain is trying to fly back 150,000 of its citizens from wherever they are. Germany is trying to help its 140,000 travellers abroad too. And, importantly, it has at one stroke rendered 21,000 employees jobless.
It brings us to an important question. Why do great companies fall this way?
The answer is simple. Large global companies are not quick to adapt to environmental changes. Their reluctance to embrace newness and their refusal to see the writing on the wall, ultimately makes them meet their own nemesis.
The adamant belief, that they can manage, simply because of a strong reputation or enormous experience, will not always help.
Today, when people can book travel tickets online, when people can compare and analyse hotel deals online, and when they can make up holiday packages online, all by themselves, how will travel agencies help?
Today’s traveller is a very knowledgeable one. He can quickly see pictures, read reviews, understand maps, and discuss with strangers online and get his travel advice -- without going to any of those huge swanky Thomas Cook offices on high streets of UK and elsewhere. The office rentals could've also been a part of their costs.
I am not saying that Thomas Cook's fall is due to this factor alone. It is not.
Their bad business decisions like buying some not-so-profitable companies, their inability to quickly finance their growing debt, and their slowness in responding to environmental changes have now cost them a lot.
Kodak too, which used to make photo films and cameras, did not see how quickly digital cams and smartphones will make them bankrupt.
Toy R Us did not see how quickly gaming consoles, and online gaming technology, will become one of the reasons for them to become bankrupt.
Blockbuster, a hugely successful video rental company in US, did not see how online streaming of video content will make them bankrupt.
However, some companies react fast.
For example, Netflix, which originally was a video sales-and-rental company quickly understood the power and future of Internet ---- and the corresponding fast growing bandwidths and data-speeds. Now, it is already investing hugely in producing content - Netflix Originals, movies and series - for its video streaming service.
National Geographic, which used to focus on magazines now offers content on many platforms like TV, YouTube, Instagram and Facebook. The last time I checked it had 4.3 million followers on Instagram.
Walmart which was a retail outlet is now selling mostly online. In fact in May 2018, with $16 billion, it bought 'Flipkart', India's second-biggest online store, after Amazon India.
These companies show us that business models must change with time.
A bold vision and quick adaptability are key elements of business success.
