Today it seems that businesses are bigger than ever. That perception is because more money is being made than ever. Yet still even with all that money companies lose sight of the “bigger picture” for the bigger profit. A company’s sustainability really has to do more with its long term approach to dealing with a change in trends. For those who failed miserably (i.e. Blockbuster, Hollywood Video, Circuit City, RadioShack), just keep on doing what you’re doing and not going for new business or changing for your current customers and look at what happened.
Netflix changed the movie rental/watching game and Blockbuster had an opportunity to get with it or get lost, and we all know how that ended. I actually liked Blockbuster too, until someone came along and said why not just stay home and have DVD’s delivered to your house instead of you driving to the store to pick one up. Oh and by the way when you ship your movie back in our pre-paid postage envelope another one will be delivered to you a few days after.
And talking about changing ways, Netflix is a great example. Old core business: Movie rental delivered to your door. Updated core business: Movie stream through internet connection and a device of your choice. Blockbuster used to offer DVD’s in the mail for a little while and then streaming, but it was too late because Netflix started it and the people running Blockbuster were not quick enough on the trend. I started my Netflix subscription in 2008 when I was a freshman in High School and back then I would have the DVDs delivered to my house, as was the way of your subscription. Back then they used to offer streaming for FREE while you only paid to have the hard copies mailed to you. I thought that was a dumb idea to watch a limited selection of movies through device and internet, so thanks for not listening to people like me Netflix.
The point is that core business needs to change with new trends that come along. If a new business offers something you do not but they do exactly the same kind of business you do, the threat can be real if you do not see what exactly they see and if it is viable in core business. Ignoring the threats and only doing the same old thing will cause you to lose out.
This was a non-paid post.