“Sometimes you have to destroy your business in order to save it.”
And that is something Blockbuster was unable to do. Blockbuster’s huge investment in traditional stores made it slow to recognize the Internet’s (Netflix) importance. In 2002, it was still calling the Net a “niche” market. It was late on everything–on-line rentals….Redbox-style kiosks…. streaming video.
While NetFlix was the downfall of Blockbuster….what will come along next to surpass NetFlix?
The real question for any business/organization is: Can it recognize when it’s business model is no longer viable and destroy it to save it.
It takes some hard thinking to get to that point. Many businesses are unable to do that….and eventually become another Blockbuster.