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Failing companies typically earn low or negative profits. This was also the case with Napster until a subscription based service. They did have to pay the music industry huge sums of money in response to unsuccessful court battles but now as Napster has evolved it is one of the market leaders along with Apple.
I believe Napster has very few barriers to entry at start-up and could have capitalised further by good strategic planning and coordination of the macroenvironment. As Shawn Fanning was an accidental entrepreneur and could not have foreseen his brainstorms popularity and controversy I believe it was a successful company. Now Shawn it a multi millionaire and whilst the company could have been improved or managed better I feel it made few mistakes.
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