The True Story Behind Blockbuster’s Decline: Not Just a Failure to Innovate
A Deeper Dive into the Real Factors That Felled the Video Rental Giant
Countless people have pondered why Blockbuster, the giant video rental franchise, ultimately lost the race to Netflix. The conventional wisdom holds that Blockbuster simply failed to recognize the potential of the internet or stubbornly resisted change. Another common argument is that Blockbuster relied too heavily on profit from late fees. However, these explanations oversimplify a much more complex reality.
Popilar beliefs on innovation
Contrary to popular belief, incumbent businesses don’t always fall because they lack innovation or refuse to evolve.
Nokia
Take the example of Nokia, a company that once produced a mobile phone superior to the iPhone, only to have it undermined by focus groups.
Here are a few good reads about Nokia’s demise.
