John McIntyre’s Post

Many times CEO’s and Owners get in the way of growth and Blockbuster themselves out of business. Imagine have the right skills and resources in place to become better but lacking so much within you lose it all and someone else takes the opportunity to do it better. It happens all the time. Just because you are thriving and one of a kind today, does not mean that case will remain. Innovation, diversity, creativity, collaboration, and continuous growth is necessary. IT CAN ALWAYS BE DONE BETTER! Blockbuster vs. Netflix: A Battle of Innovation and Disruption By respromosOn July 9, 2024 https://lnkd.in/eTRExgra

In the latest blog post on our website, we explain that adopting new tech helps avoid business pain and losses. One of the most well-known examples of a company failing to adapt is Blockbuster. In the early 2000s, Blockbuster had the opportunity to adopt a digital streaming platform similar to Netflix but chose to stick with its traditional brick-and-mortar model. The board lost confidence in a CEO named Antico, who was trying to eliminate the collection of video rental late fees and adopt a new online model. According to a Forbes article, “Keyes was named CEO and immediately reversed Antioco’s changes in order to increase profitability. Blockbuster went bankrupt five years later.”(1) While Blockbuster, as a company, was gasping for its last breath, Netflix soared to become a dominant force in the entertainment industry. Blockbuster's downfall is a stark reminder of the risks associated with not embracing new technologies. Read more stories about how failure to adopt new tech has caused business grief in our blog post titled “How Ignoring Tech Results in Profit Losses: The Cost of Stagnation.”  https://oal.lu/lMYgc  

🚀 𝗟𝗲𝘀𝘀𝗼𝗻𝘀 𝗳𝗿𝗼𝗺 𝗙𝗮𝗶𝗹𝘂𝗿𝗲: 𝗧𝗵𝗲 𝗥𝗶𝘀𝗲 𝗮𝗻𝗱 𝗙𝗮𝗹𝗹 𝗼𝗳 𝗕𝗹𝗼𝗰𝗸𝗯𝘂𝘀𝘁𝗲𝗿 🎥 In the late 90s and early 2000s, Blockbuster was a household name. With over 9,000 stores worldwide and revenues peaking at $5.9 billion in 2004, the company seemed unstoppable. However, by 2010, it filed for bankruptcy, marking a dramatic fall from grace. What went wrong? 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗙𝗮𝗶𝗹𝘂𝗿𝗲 𝘁𝗼 𝗔𝗱𝗮𝗽𝘁: While companies like Netflix were embracing digital streaming, Blockbuster clung to its brick-and-mortar model, failing to recognize the shift in consumer behavior. 𝗠𝗶𝘀𝘀𝗲𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀: In 2000, Blockbuster had a chance to buy Netflix for $50 million but turned it down. By 2010, Netflix was valued at $15 billion, highlighting the importance of recognizing potential disruptors. 𝗖𝗼𝘀𝘁 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: Blockbuster's heavy reliance on physical inventory and real estate made it vulnerable. In contrast, Netflix's low overhead costs allowed for rapid scalability. 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗘𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲: Blockbuster's late fees and limited selection alienated customers, while Netflix’s no-late-fee model and vast library of content attracted millions. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗙𝗶𝗴𝘂𝗿𝗲𝘀 Peak Revenue (2004): $5.9 billion Bankruptcy Filing: 2010 Debt at Bankruptcy: Approximately $1 billion Blockbuster's story is a reminder that even the giants can fall. Adapting to change, recognizing new opportunities, and focusing on customer experience are crucial for sustainable success. #𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗟𝗲𝘀𝘀𝗼𝗻𝘀 #𝗕𝗹𝗼𝗰𝗸𝗯𝘂𝘀𝘁𝗲𝗿 #𝗙𝗮𝗶𝗹𝘂𝗿𝗲 #𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 #𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝗘𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲

No company is too big to fail!   Blockbuster had 'late' fee for the movies it rented, So if you return the movies late you pay more.   It was so huge that they used to make $800 million per year!  ->40x the asking price for Netflix!   Frustrated with this, Reed Hastings created a company named Netflix, and we all know the story!   Let's cover the reasons for blockbuster's failure!   1. Underestimating technology: Blockbuster clung to physical stores only and was too late for digital!   2. Ignoring Consumer Trends: Customers were looking for convenience and flexibility, better offered by online service.   3. Complacency in Success: Blockbuster felt invincible and never looked for innovation and adaptation.   ->Learnings   1. Innovate or peril: No matter your industry, staying relevant is the key.   2. Customer First Strategy: Always prioritize what your customers want—not just what works for you.   3. Flexibility is Key: The willingness to pivot at the right time   Best, Yashvardhan   Tags: #BusinessStrategy, #Innovation, #Netflix, #Blockbuster, #LessonsLearned, #DigitalTransformation

Day 2 of 100 🚀 If you were born in the early 70's you probably know about renting DVD's to watch movies from Blockbuster, but have you wondered why we don't have them now? Enter Netflix 🥁 Imagine a time when DVD tapes were all the rage. But then Reed Hastings had a bright idea: tackle those annoying late fees from Blockbuster rentals. With just $25,000 and a cool idea, Reed Hastings and his buddy Marc Randolph started Netflix. Instead of stores, they mailed DVDs to your door. Plus, no late fees with their subscription model. Pretty cool, right? Blockbuster could've squashed Netflix with their own online plan. But they missed the boat. Blockbuster tried going online, but it cost a lot and didn't work well. Meanwhile, Netflix kept growing. Blockbuster got into debt and had other problems. They couldn't keep up with Netflix. So, it wasn't Netflix that beat Blockbuster—it was Blockbuster's own mistakes. Lesson learned? Sometimes, being smart is better than being big. And guess what? Netflix still sends out DVDs! Cool, huh? #product #innovation #earlystartups

Success today doesn’t guarantee survival tomorrow, ignoring tech innovation can be fatal! The story about Blockbuster and how they once ruled the entertainment world with physical DVD rentals clearly depicts this. Despite Blockbuster dominance, it failed to adapt to the growing technological trends. They dismissed the potential of streaming, convinced that their current business model was invincible. Meanwhile, Netflix, starting with DVD rentals by mail, quickly saw the future of digital streaming. They pivoted, embraced tech innovation and redefined the entire industry. Today, Netflix is a household name while Blockbuster is a distant memory. No matter how successful your current operations are, ignoring tech evolution can be a fatal mistake to any industry. In today’s business landscape, adaptability is key to survival. Whether it’s implementing IFRS 17, optimizing supply chains or embracing technology driven solutions, the need for digital transformation is undeniable. In my role, I’ve helped companies navigate these shifts. I’ve seen how those that invest in technology soar, while those that stick to legacy models struggle to keep up. If you’re looking to future-proof your business, let’s have a conversation about how tech solutions can drive your transformation. It’s time to adapt and thrive in the new digital age! #DigitalTransformation #TechSolutions #BusinessDevelopment #SupplyChainOptimization #TechAdaptation

$8.4 Billion to 0! In the late ‘90s, Blockbuster was the dominant player in the video rental industry In 2010, they filed for bankruptcy The crux of Blockbuster’s dramatic fall? - Lack of foresight and unwillingness to adapt Contrast this with - Netflix, then a small DVD-by-mail service. Today, it is valued at $204 billion The secret? They saw a world beyond physical media: Streaming Netflix founder Marc Randolph wrote the following in his book - “We looked ahead to a future without DVDs or mail” Their pivot to streaming was a game-changer Netflix innovated, while Blockbuster clung to it’s retail model. This story isn't just about corporate giants; it's a lesson for all entrepreneurs: Innovation isn’t a luxury; it’s survival. Are you adapting fast enough to stay relevant? Share how you’re embracing change below. #adaptability

𝑪𝒂𝒔𝒆 𝑺𝒕𝒖𝒅𝒚: 𝑻𝒉𝒆 𝑩𝒍𝒐𝒄𝒌𝒃𝒖𝒔𝒕𝒆𝒓 𝑪𝒂𝒔𝒆 In the early 2000s, Blockbuster was a household name, dominating the video rental market. But by 2010, it filed for bankruptcy. What went wrong? While Netflix was revolutionizing the industry with a subscription-based, on-demand model, Blockbuster clung to outdated practices. Key management missteps included: ❌ Failing to adapt to digital transformation. ❌ Ignoring shifting customer preferences for convenience. ❌ Dismissing an opportunity to purchase Netflix for $50 million—a deal now worth billions. The lesson? Effective management isn’t just about maintaining the status quo; it’s about recognizing and acting on emerging trends to stay competitive. 🔑 Is your business prepared for the future, or are outdated strategies holding you back? Let’s connect to discuss how strong management can help your business thrive. #CaseStudy #BusinessManagement #LeadershipLessons #AdaptOrFa

The Blockbuster Story. Even the most successful IPs can fall if not managed properly. Let’s explore some well-known IPs that struggled or failed and what we can learn from them. 1. Blockbuster: The IP That Fell BehindIn 2000, Netflix offered to sell itself to Blockbuster for just $50 million, but Blockbuster turned it down. This refusal to embrace streaming marked the beginning of its downfall. 2. Ignoring the Shift to StreamingWhile Netflix evolved with streaming, Blockbuster stuck to physical rentals. By the time Blockbuster tried to pivot, it was too late. Netflix became a $30B+ revenue giant, leaving Blockbuster behind. 3. Bankruptcy and Missed Opportunities In 2010, Blockbuster filed for bankruptcy with $1 billion in debt. They failed to innovate, becoming a classic example of how stagnant IP leads to failure in fast-changing industries. 4. From Market Leader to One Store LeftAt its peak, Blockbuster had 9,000 stores worldwide. Today, only one store remains in Oregon, USA now more of a nostalgic attraction than a functional business. 5. Evolve or Be Left Behind Blockbuster’s story teaches us that even dominant IPs can crumble without innovation. Success comes not from staying the same but from evolving with market changes Picture credit: Tige Savage

I just finished reading an article about the competition between Netflix and Blockbuster in capturing the high-end market back in the days. Netflix effectively utilized the Disruptive Innovation Model (DIM) to challenge Blockbuster's dominance and eventually not only captures the high-end market but the low-end market as well. It was a fascinating read, shedding light on the strategies employed by both companies. The story practically demonstrates the thoery of disruptive innovation by Clay Christensen Read the story here👇🏻 https://lnkd.in/dGDbBXQB Share with us any about disruptive innovation that you know and how it disrupted the incumbent market players #Innovation #Agritech #ICT4D #DisrutptiveInnovation #Africa #Nigeria