Top 10 Brands Born Out of a Crisis

This article comes from the blog archive – figures and examples reflect the year it was published.

History teaches us that, however painful it may be, terms like crisis, economic downturn and recession are simply part of development. Everything around us works in waves, and the economy is no different. So-called periods of crisis are far more frequent than might appear at first glance. A period of prosperity is always followed by a period of decline. The reasons vary, and so does their depth. But the important lesson for all of us is that every recession passes one day and that it’s an opportunity to start something new. The stories of brands that began their success story precisely during a recession prove it.

It might seem unwise to launch a new business right in a period of economic decline. Some part of us longs for certainty and comfort. But that, too, is exactly what being in business is about – learning to get past your own comfort and being able to stand up to adverse conditions. Starting a business during a recession is undoubtedly a challenge. Yet there are plenty of examples showing it can be done. Of course, nobody will hand you a warranty card promising it’ll work out. But belief in your own abilities, a good idea and a willingness to take risks are the cards that can bring you the result you long for. A period of economic decline favours change. Every crisis teaches us something and makes room for the solutions and innovations the times demand. That’s precisely what plays into the hands of all start-up projects, new technologies and business in general. Put simply – a crisis is a problem – a problem that demands a solution. And in the solution lies an opportunity for new ideas, new brands, new services, new businesses. Perhaps yours too. These ones did it... Be inspired.

General Electric, 1892

The company was admittedly founded a few years before the crisis, but it soon had to grapple with the fairly severe recession of 1893. The firm, whose creation Thomas Edison also had a hand in, persevered and in 1896 even became one of the 12 companies that were the first to be listed on the Dow Jones index.

General Motors, 1908

At the end of the 19th century, William Durant was still building horse-drawn carriages. But he seized the opportunity, put his faith in the automobile and set about building a company that to this day ranks among the giants of the car industry. And that despite having to face a crisis shortly after he entered the segment. He even made effective use of that period to buy up other companies in the segment.

IBM, 1911

Charles Flint founded CTR (Computing-Tabulating-Recording Company) in June 1911. He began selling his products right in the middle of a fairly long two-year crisis. Although most companies were merely surviving in that period, Flint and his firm set out on a path of expansion. The name changed to IBM and the company became a technology leader.

Disney, 1929

Walt Disney’s story is fairly well known. He’s one of those who had to chew their way through a whole string of rejections to reach the top. Together with his brother Roy, he eventually founded an animated film company. And he did so right in the period of the greatest crisis in history. The brothers understood that a society going through such hard times needs hope and a smile more than ever before.

HP, 1939

The crisis that hit the economy on the eve of the Second World War was admittedly fairly small compared with the great economic crisis of the 1920s, but it still hit a great many companies. Regardless, fresh Stanford graduates William Hewlett and David Packard had their dream and decided to go after it. The result is a company with a worldwide reach that is still going today.

FedEx, 1971

FedEx was originally a term paper. In it, its author Fred Smith proposed a system of fast, efficient door-to-door delivery. And he went on to make that vision a reality. Today it’s one of the largest shipping companies in the world.

Microsoft, 1975

A crisis also brought together Bill Gates and Paul Allen. They joined forces and started a software company that remains one of the biggest in the field to this day.

Netflix, 1997

It was a close call, and Netflix very nearly became one of the casualties of the internet bubble at the start of the 2000s. Only with fairly great difficulty did they manage to weather the crisis and become one of the leading companies for streaming and on-demand video content.

Mailchimp, 2001

The e-mail delivery service was originally meant to be set up as a service for large corporate clients. But since they were starting out during the online business crisis, a key decision was made to change the business model. A freemium service for smaller companies was added, which for Mailchimp meant a rocketing rise in users – within a single year they jumped from 85 to 450 thousand.

Airbnb, 2008

The mortgage crisis gave rise to a network for renting out spare accommodation. Although the current situation is not kind to this business, it doesn’t change the fact that an unfavourable period gave rise to a brand that very quickly became one of the most successful commercial platforms.

The stories of these brands are inspiring and offer hope to everyone who longs for positive change. Among other things, they prove one more important fact – even behind the brands we now see as corporations, there is a dream and the effort of their founder.