For Example Amana and Corning Corporations started out as Communist Communes. They were so successful that when the Great-Grandchildren of the original founders of the Communes came to control the Commune they decided to end the commune and make the business into a Corporation. This is typical of most communes, when they are successful the descendent's of the original commune members eventually decide to end the commune and live the good life.
The main problem with communism as practiced in the Soviet Union and Red China was to be successful in overthrowing the old regime they had to be a cut throat as the old regime. This meant they never really had popular support (This was the main dispute between Rosa Luxembourg and Lenin, she wanted to wait for any revolution till the Communist had support from the majority of the people, Lenin did not want to wait that long, he believed once you have the power of the Government the people will follow, Please Note Lenin Ended up in Power in Russia, Rosa Luxenbourg ended up shot and thrown into a Berlin body of water). Given this lack of popular Support the Communist had to watch for counter-revolutionary activities. This meant a large secret Police force which became the tool of Suppression of any popular movement. Thus you never had majority support FOR communism in Russia or China. The Communist were the largest party in both countries, but most peasants ended up being neutral and as such not commented to Communism. Without that popular support the peasants could always back someone else and the Communist had to guard against this which lead to the repression of the Soviet Union.
The second problem was Stalin. Do to his activities as a informer for the Czarist Secret Police, bank robberies and other illegal activities he was the main source of Money for the Communist Party prior to WWI. Given this fact he had a lot of people in the Party that owned him favors. Now Lenin and Trotsky won the Revolution for the Communists, Stalin was of some (Through minor) help. When Lenin Died, Stalin do to the people who owned him favors where able to maneuver Trotsky out of sharing Power in the Soviet Union, than out of the Communist Party and than out of Soviet Union. Stalin liked power more than he liked Communism, thus he liked the idea of centralized control of the economy for it gave him absolute power. That such a control system was wasteful in itself did not phase Stalin, all he cared about was the Control. Thus Russia ended up with was nothing but Government Controlled Businesses with the business managers acting like the Capitalist of the old regime. No flexibility and no bankruptcy to correct their problems.
Tied in with Stalin adoption of what the Trosklites call "State Capitalism" was the problem of raising money to fight off the enemies of the Soviet Union. Even Trotsky had to fight off the Whites and that required raising money. Taking over Businesses by the Central Government "Solved" the problem of raising the necessary revenue to fight off the Whites, but ended the small scale Communism that had become wide spread in 1917-1921 (and it is such small Scale Communism that had been the most successful throughout history). Money for the war effort was constant need.
Finally and what did in the Soviet Union more than any other single factory is the high percentage of their GNP the Soviet Union was spending on Defense. The estimates is around 30-40%. 10% is the maximum a country can spend over a long term and NOT seriously affect their economy. This was tied is with ALL of the above and meant sooner or later Communism had to fall, either to an invasion once the spending was cut, or internal economic collapse do to the excess spending (it is the later that happened).
My point is Communism does work, providing you do not spend to much on Defense, and provide a product that the world wants to buy.
For More On Amana:
http://www.amanaheritage.org/history.html