Page 16 - January 23 2023
P. 16

As  Amazon.com  and  Redbox  emerged  as
                                                               competitors,  Blockbuster  struggled,  losing
                                                               $200  million  in  late  fees  and  investing
                                                               another  $200  million  to  launch  Blockbuster
                                                               Online.

                                                               In  2000  Blockbuster  was  presented  with  a
                                                               golden  opportunity  to  dominate  the  industry
                                                               when Netflix offered to sell to Blockbuster for
                                                               $50  million.  Blockbuster  had  raised  $465
                                                               million  in  its  IPO  the  prior  year  yet  declined
                                                               the opportunity.
                                                               By 2005 Blockbuster lost 75% of its market
                         By  Rebecca Murtagh                   value.  It  was  hit  hard  by  the  recession  of

                                                               2007-2009  and  filed  for  bankruptcy  in  2010
             Disruption  is  inevitable.  Recession,  inflation,  with only 1,700 stores. By 2014 all company-
             mandates,  natural  disasters,  illness,  loss,   owned stores were closed. One store remains
             technology, competitors, and every other kind     in Bend, Oregon.
             of  disruption  can  result  in  failure.  It  doesn’t
             have  to  be  this  way.  Disruption  can  create  Netflix  would  grow  exponentially,  offering
             enormous opportunity.                             online streaming in 2010. In 2012 Netflix was
                                                               the  largest  streaming  service  in  the  world
             Less than 10% of public companies survived        with  222  million  subscribers  worldwide,  and
             past  recessions.  What  did  they  do  that  over  $20 billion in revenue.
             90%  did  not?  They  turned  disruption  into
             opportunity.                                      TALE 2. Ford Motor Company incorporated in
                                                               1903. The company scale from selling would
                  INNOVATION is OXYGEN to
                                                               sell  10,000  Model  T  cars  in  1908  to  selling
                         YOUR SUCCESS                          1,905,955 vehicles and 174 billion in revenue


             One  brilliant  idea  can  create  massive        in 2021.
             success.  Brilliant  ideas,  in  time,  become
             obsolete    if   they   do   not   evolve,   as   The  hand-crank  windowless  22  horsepower
             demonstrated in these two tales:                  Model T ford has evolved to vehicles like the
                                                               Mustang  with  padded  seats,  tinted  glass,
             TALE 1. If you are over 30 you likely remember    navigation,  Bluetooth,  heated  seats,  up  to
             Blockbuster  video.  The  first  store  opened  in  480  horsepower  engines,  and  an  electric
             1985,  offering  VHS  video  rentals  for  home   model for 2023.
             viewing. By the early 1990’s Blockbuster had
             become  the  largest  video  rental  company  in  Ford  didn’t  just  adapt  to  the  latest
             the  world  with  1,000  brick  and  mortar  video  technology.  Ford  became  a  disruptor  by
             rental  stores  serving  over  50  million        introducing  the  first  moving  assembly  line,
             members. Technology changed. DVD replaced         which  gave  them  a  distinct  advantage  and
             VHS. Blue ray replaced DVD. By the year 2000,     forever changed the automobile industry.
             late fees accounted for $800 million, or 16%,         DISRUPT OR BE DISRUPTED
             of Blockbuster’s revenues.                        You  may  not  be  able  to  predict  what  form  it
                                                               will  take.  Disruption  will  come  to  your
             The  internet  created  competition  when  in     business, career and life.
             1997  Netflix  created  an  online  store  to
             facilitate  mail  order  rentals  delivered  to   You have one simple choice to make: DISRUPT
             customer’s  homes.  Customers  could  watch       or BE DISRUPTED.
             videos  and  return  them  on  their  timeline.                  To learn how to:
             Blockbuster was forced to alter its business                Turn disruption into opportunity
             model to compete.                                                Accelerate growth
                                                                    Build a future-proof framework for innovation
                                                                          Create sustainable success
                                                                            Rebecca Murtagh, Human AI Institute
             Page 16  I  iNETrepreneur Magazine                              https://www.RebeccaMurtagh.com
                                                                           Email: Rebecca@RebeccaMurtagh.com
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