This two-minute-read comes to you because it may inspire your week.
You might have heard, or probably you have not: just yesterday, Blockbuster the American movie rental giant is closing down two of its remaining three stores. What an unfortunate story, this is another victim of disruptive innovation. At its peak Blockbuster, employed over 84,000 staff, recorded over $3billion in revenue and had over 9,000 stores. 14years after, the company is left with just one store. Before its fall, I recall the first time I went to Blockbuster store to rent a movie; it was with great excitement, I was captivated by the blue and yellow colour of the store which perfectly blended with the employees’ uniform. I could identify with the way Mitch Albom, the American Author captured it: The everyday American conversation is like this:
“Where are you going?”
“To grab some dinner.”
“Stop by Blockbuster and get us a good movie.”
“Where are you going?”
“To grab some dinner.”
“Stop by Blockbuster and take the movies back.”
Pick up. Drop off. It was, for many, a daily experience.
It takes considerable effort to do all the above. Unfortunately, customers didn’t realise this because there was no better option, but when the online video rental system came on stream, Blockbuster’s model became like sour milk.
Blockbuster’s business model rent out a CD/DVD and charge a penalty fee for late return. Reed Hastings, the founder of Netflix, was a customer of Blockbuster (In fact, Reed returned the DVD of Apollo 13 to Blockbuster six weeks overdue and was perturbed by the $40 late fee). In 2000, he proposed to the CEO of Blockbuster John Antioco and his team, to run Blockbuster’s brand online, and Antioco’s firm would promote Netflix in its stores. Unfortunately, Blockbuster ridiculed him; they didn’t believe that anyone would rent a movie online. Today, Netflix is a $43billion company with over 100million customers while Blockbuster is left with one store and bankrupt.
As you begin your week, I want you to think of innovation. Examine what you are doing right and better than your competitors, look at those things that your competitors are doing better than you. More importantly, think and visualise those things that could enhance customer value proposition which neither you nor your competitors are doing. If you fail to Renovate and Innovate, your business would become a victim of innovation.
Begin your morning by asking yourself “how best I can serve my customers?”, think of how you could make their life easier by your product or service offerings. Life is already complicated there’s no need to worsen it for your customer.
On Tuesday, my article will be “Dismantling Organisational Rigidity”; I believe it will further expand our line of thought in respect of innovation and idea generation. Before then, always remember we are your innovation partner, and we are just a click or call away.
Have a wonderful week.
