http://images.fastcompany.com/upload/netflix-blockbuster.jpg
“Instant Death of Instant Photography”. Nancy Huang’s blog post caught my attention instantly. Her post carried strong points and I agree that it is essential for brands to remain innovative.
A decade ago, Blockbuster was a behemoth in the movie rental industry. In 2010, it came word that Dish Network was buying Blockbuster’s assets out of bankruptcy.
The company’s failures can be largely attributed to its overconfidence and blindness to emerging trends. Blockbuster ignored the innovations occurring around them and locked themselves into the narrow view that they were a provider of movie rentals rather than a distributor of entertainment.
In class, we learned of the importance of market research: it is an indispensable aid in decision making. Clearly, Blockbuster should have been in class with us. The company failed to collect and analyze sufficient enough data and made extremely poor decisions. It wasn’t until six years after Netflix launched that Blockbuster realized that it needed to enter the online DVD rental-by-mail industry: the company’s slow reaction was the source of its downfall.
A company needs to continually compare their value propositions with those of competitors in order to respond to new trends and generate business strategies. Unfortunately, Blockbuster was a little too comfortable sitting its throne up high. Now, it’s underground, dead.
Works Cited:
Huang, Nancy. “Instant Death of Instant Photography | Nancy’s Blog .”UBC Blogs | Home. N.p., 7 Oct. 2011. Web. 16 Nov. 2011. <https://blogs.ubc.ca/nancyhuang/2011/10/07/instant-death-of-instant-photography/>.
Woloszynowicz, Michael. “Web 2.0 Development and Business Lessons: Business Lessons from Blockbuster’s Failure.” Web 2.0 Development and Business Lessons. N.p., n.d. Web. 16 Nov. 2011. <http://www.w2lessons.com/2010/09/business-lessons-from-blockbusters.html>.
MG, Siegler. “Snoozing And Losing: A Blockbuster Failure | TechCrunch.”TechCrunch. N.p., 6 Apr. 2011. Web. 16 Nov. 2011. <http://techcrunch.com/2011/04/06/make-it-a-blockbuster-night/>.