Why Toshiba has collapsed and what lessons can we learn

Something that seemed impossible a few decades ago has ended up happening. For many years Toshiba was a benchmark for large Japanese and world companies, and in a very short time it has disappeared from the market. In just 8 years.

Toshiba was a Japanese multinational electronics, energy and services company. Founded in 1875, it was one of the oldest and most respected companies in Japan. However, in recent years, Toshiba has been immersed in a series of problems that have led to its collapse.

The main factors that have contributed to Toshiba's decline are the following:

• Corporate scandals: Toshiba has been the subject of a series of corporate scandals in recent years. In 2015, the company was found to have falsified financial data for several years. This scandal led to the dismissal of Toshiba's president and a loss of investor confidence.
• Financial problems: Toshiba has been struggling with financial problems for several years. In 2015, the company was forced to undergo a major restructuring to reduce its debt. However, financial problems continued, and in 2022, Toshiba announced that it was considering selling its semiconductor and power units.
• Changes in the market: The electronics market has changed a lot in recent years. Competition from companies like Apple and Samsung has made it increasingly difficult for Toshiba to compete.

The Toshiba case is a reminder that even the largest and most successful companies can suffer decline if appropriate measures are not taken. No company is safe if it makes mistakes, and large companies often make big mistakes.

Some lessons we can learn from the Toshiba case are:

• The importance of corporate ethics: Corporate scandals can have a devastating impact on a company's reputation. Toshiba lost the trust of investors and customers due to its corporate scandals.
• The importance of financial management: Financial management is essential for the success of any company. Toshiba failed to properly manage its finances, leading to financial problems and loss of investor confidence.
• The importance of adaptation to change: The market is constantly changing, and companies must adapt to these changes to remain competitive. Toshiba was unable to adapt to changes in the electronics market, which led to it losing market share.

Great managers who live on the upper floors of skyscrapers can make the mistake of forgetting about their clients and the integrity of their actions.

On the other hand, changes (technological, social, etc...) are faster every day, and you have to know how to react and adapt to them, and if the company is very rigid it does it poorly and late.

The future belongs to companies that behave as if they were small and react quickly to changes in the environment, whatever they may be, and their managers have the courage to never deceive themselves.

There is nothing more stupid than fooling yourself by playing solitaire. And I think some of that happened to Toshiba. I feel sorry for them, and for many of their workers who through no fault of their own have lost their jobs.