Insights from Unsuccessful Startups: What Market Research Could Have Prevented!

Starting a company is a critical, challenging, yet rewarding adventure, but the hard truth is that 90% of startups fail just after entering the market. Starting a company is not only about having a great idea and executing it but also about making data-driven business decisions! Knowing the market, customers, and rivals is key before launching a product or service. So, let us claim it, many startups fail because of poor, misjudged, or missed market research!

In this article, let’s explore real-life business failures and analyze how market research analysis could have helped those companies.

1. Juicero: A Misjudged Market Demand

Juicero, a startup from Silicon Valley in the US, entered the market in 2014 but ceased operations in 2017! The Guardian wrote that Juicero was an example of “the absurd Silicon Valley startup industry that raises huge sums of money for solutions to non-problems”(1). Juicero designed and manufactured an advanced fruit and vegetable juicer. This juicer featured WIFI connectivity and needed special juice packets that were sold exclusively on a subscription basis. Users found out that the company’s produce packs could be squeezed by hand, which made this costly machine unnecessary. The company closed its doors in 2017 after securing over $120 million in funding .

How Market Research Could Have Helped:

• Surveys & Group Discussions with Consumers: Asking potential customers if they thought a $400 juicer was worth buying.
• Look at Market Competition: Find other options and check if the market needs this new product with its complicated features.
• Studying Price Sensitivity: Learning how much customers would pay for this product.

2. Beepi: Zero Competitive Advantage in a Crowded Market

Beepi, a company founded in Mount View, California, created an online platform to buy and sell used cars. The company launched operations in 2014 but was forced to shut down in 2017 after a lot of failed efforts. The company faced tough competition from big names like Carvana and Craigslist. Beepi did not have a clear value proposition to differentiate itself from the fierce market competition. In 2015, The Wall Street Journal reported that the company required a further $300 million in funding. At its peak, the company had a lot of running costs, which contributed to its failure.

How Market Research Could Have Helped:

• Competitive Analysis: Finding gaps in the market instead of copying what others did.
• Customer Interviews: Learning about pain points and if Beepi would be there fixing a problem.
• Market Feasibility Study: Checking the market size and seeing if there was a place for one more player in this industry.

3. Uber in China: Misjudging Cultural Differences

Uber pushed into China but left in 2016 after losing billions due to tough competition and misunderstanding local customer habits. Uber failed to research the Chinese local regulations and market conditions. Chinese regulators had some barriers for foreign companies as to the requirement of local partnership. Didi, the main market player, was able to navigate these regulations due to its strong local connections. However, Uber was relying on its global model of operation without adapting to the Chinese market.

How Market Research Could Have Helped:

• Local Market Analysis: Looking into Didi’s grip on the Chinese market.
• Cultural Sensitivity Research: Finding out what ride-hailing customers prefer. In-depth market research should have been done to assess the local culture and consumer preferences. So, when it comes to ride-sharing, Chinese consumers have different preferences and expectations.
• Strategic Partnerships: Teaming up with local businesses rather than going head-to-head.

4. Google Glass: Thinking People Will Stay Loyal to a Strong Brand

Google Glass, developed by Google X, resembled eyeglasses with a head-up display. The product was set in the market in 2012(3) but received a lot of criticism as to safety, ethics, and etiquette when used in Public. Google tried to change how consumers use tech wear, but it failed because people worried about privacy as well.

How Market Research Could Have Helped:

• Social Sentiment Analysis: Checking public responses to privacy issues.
• Usability Testing: Assessing real-world function before wide release.
• Pricing Research: Finding price points that align with perceived worth.

5. Quibi: Not Considering What the Target Audience Wants

Quibi, a streaming service for short videos, hit the market in 2020 with $1.7 billion in its pocket. It shut down in just six months because it didn’t get its audience right (4). The company thought people wanted premium 10-minute videos, but users were happy with free stuff on YouTube and TikTok.

How Market Research Could Have Helped:

• Behavior and Consumer Preference Studies: Look at how people watch videos and what they like.
• Sizing Up Rivals: Figuring out why YouTube, TikTok, and Instagram were doing so well.
• Test Runs: Trying out the service with a small group to get feedback before going big.

Market Research is every Startup’s key starting point

Many startups fail because they guess and assume instead of doing research. Good market research helps businesses Check demand before launching, find the right audience and what they need, know their competition, and how to stand out and grow with insights and decisions based on market data.

So, whether you’re just starting as an entrepreneur or you’ve been running a business for years, investing in market research can make or break your venture.

Want to make sure your business idea holds up? Begin with Research!

References

• “Juicero: Juicing boss defends $400 machine”. BBC News. April 21, 2017. Retrieved February 2, 2025.
• Levin, Sam (September 1, 2017). “Squeezed out: widely mocked startup Juicero is shutting down”. The Guardian. Retrieved February 2, 2025.
• Goldman, David (April 4, 2012). “Google unveils ‘Project Glass’ virtual-reality glasses”. Money. CNN. Retrieved February 2, 2025.
• Mullin, Benjamin; Flint, Joe; Farrell, Maureen (October 21, 2020). “Quibi Is Shutting Down as Problems Mount”. Wall Street Journal. Retrieved February 2, 2025.

Zeina Zeineddine

Zeina is a domain expert on Solvecube, Zeina is an experienced SEO content writer with over 6 years of expertise in crafting user-focused web content, blogs, and market-driven articles. She specializes in content strategy and collaboration, delivering impactful, SEO-optimized content that drives traffic and supports business growth.