As the signs are torn down, I reflect on Blockbuster’s business, and it’s demise.
Blockbuster Rentals went into liquidation twice in twelve months after many years of successful trading. The store under our offices was a ‘green’ store apparently, meaning it made a good profit, however many other stores were struggling.
The reasons behind their demise was clear – the advent of superfast internet. This enabled people to legally (and in many cases illegally) consume video content (films, TV shows etc.) efficiently, directly to their new fangled TV’s.
If I wanted to I could download the latest film releases on my iPhone and watch them down the pub. This technology was unimaginable just a few years back. Remember those old Nokia ‘phones, with a pull-out bendy aerial?
The writing had been on the wall for some time, and as the internet speeded up, Blockbuster’s fate was sealed. Could anything have been done to prevent this once great establishment crashing?
Woolworths, Comet, HMV
I’m not too sure. They started video game rentals, they sold pick and mix, and you could also buy new film releases. This didn’t help. Could Blockbuster management successfully react to a fundamental shift in buying habits of its core audience? Look at other giants that failed, Woolworths, Comet and the resurrected HMV.
The internet, and technology in general has created opportunities and threats for many a business. All businesses have potential threats, but understanding what these are enables businesses to prepare and adapt.
We’ve just done SWOT analysis for our business. It’s a great exercise to do and I encourage any business to do it on a regular basis.
As my old boss used to say ‘get it done’!