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Alex Vaskevitch Benedicte Gravrand, Opalesque Geneva for New Managers: As technology becomes more innovative and sophisticated by the day, we adapt to it faster than we used to, say, a century ago. However, some companies find it hard to do so, as embracing new technology would mean a change of business model. But attachment to a model that has been successful, pressure from shareholders and from debtors will encourage resistance against the unrelenting flow of innovation, which in the end might prove fatal.
What if, for example, the CEO of Blockbusters, a former provider of home movie and video game rental services, had decided to buy Netflix 10 years ago? He didn’t. And so, pressurised by competition from the new video streaming service providers, Blockbusters filed for bankruptcy in 2010. The company and its remaining stores were bought by Dish Network, which then closed down the stores gradually. Dish only kept and integrated Blockbusters’ last attempt at modernisation, "Blockbusters on Demand", a video streaming service. We don’t really miss Blockbusters, which now seems antiquated – even though initially it was innovative.
For other such examples, see what Google is doing to the media directories industry, what Amazon is to traditional retailers, what digital photography has done to Kodak, and how tablet...................... To view our full article Click here
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