Seems like just yesterday we could go to a movie store, pick up your a movie you had been dying to see, get a bag of some extra buttered popcorn seeds and be on your way. Now how does this process work? We just call up or text our friends for the Netflix password of course! From there we go to the search bar and our movie is on and enjoy. So easy, ahh. Where did the good ole fashioned renting a movie or game business go?
Ill tell you where! One glorious day the end users (us) noticed that instead of having to go inside to drop off movies. In fact instead of going inside the stores to drop off movies and maybe even rent another, we could just drop their rented products in a drop box which was indeed more convenient for us and saved us time, but ultimately destroyed Blockbusters business. Their drive for innovation and then complacency at a bad pivot from their original idea lead them to a blockbusting idea that plunged them out of business.
Blockbuster essentially kicked us out. They thought by making their customers drop off their rented product they were making them enjoy their experience in a “convenience” portion of their business. Which truthfully we did. But like Steve Jobs said sometimes the customer does know what they want! However, this is not always good for business. By adding this new drop off portion to their business, they kept dollars out of their door. They failed to see that the advantage of actually having customers in stores. They loved the thought of changing something over the thought of making sure the disadvantages did not outweigh the advantages. The advantages obviously outweighed only opposition which the ease of use for customers. These advantages included recommendations by the staff, purchasing of complimentary items, impulse buying, matching a culture with their business, customer-business relations as well as general feedback from goods they buy. Keeping the customers away is generally not a good idea for your bottom line.
WOULD THEY HAVE FAILED ANYWAYS?:
Awesome question. We will never know. It is cool to ponder and look at businesses that cannot adapt and adjust to an ever changing market place. With that said it is safe to say that any business that cannot cope with up and coming trends is on their way out. That is true of not only huge corporations like with what we saw with Blockbusters but with over night successes like the Snapchats of the world.
It is said that in 2000 the founder of Netflix proposed a partnership with the CEO of block buster, in that in simplified lingo the negotiable terms were that Blockbuster would be promoted online where Netflix would be promoted in stores. Essentially a win-win but instead of looking towards the future the CEO of Blockbuster and his board laughed Netflix’s idea out of their meeting room. 10 years later after the Blockbuster became bankrupt and Netflix acquired millions of cult like subscribers streaming their content from computers, smart phones and televisions safe to say that Netflix founder got the last laugh.
NETFLIX MAY BE ON THE WAY OUT:
If ever the leadership within the Netflix organization comes to a point where they lose humility and gets too cocky they could be on their way out. We have seen with many business that did not looking ahead for the trends, not responding upon customer feed back as well as not producing results in the fashion a market leader should. The should all take caution because mother nature is nasty, and will not hesitate to cast it out of existence. I learned this from the book called Bold by Peter Diamondis I reviewed it in a blog post in one of my first posts here it is right here if you are interested: http://wp.me/p5jsbi-3K a company like Kodak could be there for over 100 years can be wiped off the map by the Instagram’s of the world (disrupter’s of the market place) who are trying to come up and be a force in a stagnant market place that needs change.
WHATS THIS MEAN FOR YOU?
Whenever you find yourself not following up on those warm leads, getting too arrogant because you have a little success and leave all other “methods” of the range of possibles in pursing endeavors, your dreams, and the like remember that it may work now but for how long? Do you want to constantly use something until you literally wear it out or do you want to upgrade, innovate and move on to bigger and better things? I understand that there are times where it is necessary that things do not need to change but those things are truly far and in between. My personal philosophy is to keep no sacred cows! Only stay true to your core values and change with your environment. Are you a Netflix or Blockbuster?