3 Lessons Learned To Avoid Kodak and Blockbuster Failures
When two major corporations in different industries fail, it is always interesting to try to find the similarities in their failures. In the case of Kodak and Blockbuster, there are at least three key lessons to be learned.
Why did Kodak and Blockbuster Fail?
Slow to Evolve:
First and foremost, both companies were slow to embrace change. In the case of Kodak, they were slow to embrace digital photography, and in the case of Blockbuster, they were slow to embrace streaming video. In both cases, the companies were so focused on their existing business model that they failed to see the writing on the wall.
Read: Business Model and Business Strategy: Telling a story using VARS framework
Slow to Adopt:
Another lesson to be learned is that both companies failed to invest in new technologies. Kodak failed to invest in digital photography, and Blockbuster failed to invest in streaming video. In both cases, the companies were content to sit back and watch as their respective industries changed around them.
Lack of Strategic Direction:
Finally, both companies made some poor strategic decisions. In the case of Kodak, they spun off their digital business, and in the case of Blockbuster, they failed to invest in a streaming service. In both cases, these decisions ultimately doomed the companies.
So, what can be done to avoid making the same mistakes?
Stay Paranoid:
First and foremost, companies need to be willing to embrace change. They need to be constantly looking for new technologies and new ways to do business.
Adopt Fail Fast Strategy:
Second, companies need to be willing to invest in new technologies. They need to be willing to take risks and invest in the future.
Strategic Planning & Execution:
Finally, companies need to make smart strategic decisions. They need to be willing to make the tough choices that will ultimately determine their success or failure.
Read: Netflix vs Blockbuster - A tale of two service providers & why Blockbuster failed!
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