by david conigliaro
David Conigliaro is a business strategist, who puts Sales and marketing on Steroids! If your company can use some juice Click below
Pump My Business Up
First and foremost,let me just say here for the record that I kinda, sorta, miss these two giants. And they were giants! If you don't believe me, just look at NETFlix.
When BlockBuster video (BBV) closed the last store in June of 2010, the very next day
NETFlix (who exterminated BBV) was NOW valued at nearly $30billion!
"One day earlier they were just valued at $11 billion!" That's the power of
of a seismic shift. When BBV sank like the Titanic The rest of the value of the
company shifted directly to their competitor. Or should say Predator!
That's Exactly what complacency does!
You can't expect to be thriving lion, to tear down, and eat gazelles when some
some other hunter comes around and shoots you with a tranquilizer!
Only, in this case the hunter wasn't really NetFlix so much as it was Blockbuster video helping Blockbuster to kill itself!
Facts: Let's take a closer look to see what happened!
Still Doing Business like it's 1999?
Blockbuster Video was using that same old 1999 business model. They were conducting business like it was the go-go 90s even though it was 2007, and the global economy changed dramatically. And they were "daily" losing customers by the "city" They still thought that they could just keep doing business as
usual! Here was a list of BBV logic on why they simply didn't adapt to the new customer climate.
Messed Up Thinking!
1) BlockBuster Video was beating Hollywood video and to BBV's credit they put Hollywood video out of business and thus, they thought that NETFlix would be the same!
2) Since BBV was fighting so hard against Hollywood video to put them out of business; all of the company's focus was on that. After all, It's hard to fight two wars at once! (Or is it?)
3) BlockBuster had Friends in high places (Or is it Low Places?) Over decades
BBV had maintained (what they thought) were solid relationships with the
Hollywood elite, Like Film companies, Movie Producers, Directors, Actors and so forth. They would go to parties and get togethers with the who's who's.
(How could these relationships ever crumble?)
2009 DVD vending machines & On Demand Streaming!
Usher in DVD vending machines! BlockBuster hated this idea. They just went along for the ride. Then finally had to close shop.
Number 1 killer of BBV was complacency
They simply were too focused on 1999 thinking. And far too focused on a small fish like Hollywood video. And too little concerned about NetFlix.
It's the same story with Circuit City!
Complacency kills companies. It's pretty much the same story with Circuit City.
Business models need to adapt to the ever changing economic climate. See the new trends on the horizon, and Move fast to consumer demand.
Here's some valuable suggestions I want to make
1) Listen to your customers. (Keep surveying them, Never stop! ) Give them what they want
2) See what new technology is in the hands of your customers that your company should make adjustments for quickly
3) Always be a good student of your competitors before they become predators!
4) Spy on your competition and see what's working or failing for them
It used to be called espionage. I call Success-pionage!
5)Keep building value! It could be better customer service, better products, faster, more efficient etc....
Those 5 would save any company from going under
M.C Hammer: Spent $33 million dollars and filed bankruptcy in 1996
Again Complacency was his downfall. And it wasn't because he didn't work hard. Hammer worked very hard. But, from 1988 to 1991 the Music culture had changed And he failed to adapt to that change
Same thing here:Kmart didn't think Walmart was going to be a problem and they paid big for it. As I write this Kmart is still in business but barely.
I know it's getting repetitive
The Same 5 apply:
Here's some valuable suggestions I want to make 1) Listen to your customers. (Keep surveying them, Never stop! )
2) See what new technology is in the hands of your customers that your company should make adjustments for quickly
3) Always be a good student of your competitors before they become predators!
4) Spy on your competition and see what's working or failing for them
It used to be called espionage. I call Success-pionage!
5)Keep building value! It could be better customer service, better products, faster, more efficient etc....
Whether you are in a Service Business, or Retail, Or Ecommerce the same 5 apply!
David Conigliaro is a business strategist, who puts Sales and marketing on Steroids! If your company can use some juice Click below
Pump My Business Up
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