Follow TIME In retrospect, it seems obvious that the practice of driving to a store to rent a movie to watch at home was preordained to extinction. The surprise, and the business tragedy, is this: It had been clear for years that Blockbuster's model was unsustainable. Heck, Netflix was operating for six years before Blockbuster launched its own movie-by-mail service.
This has been a long time in the making, and there is still a lot you can learn from it. Everyone I know who was a Blockbuster customer, including me and my wife, hated late fees. Sometimes, you would plead for mercy with the store associate.
That knock came from Netflix. Their business model was designed very differently, leveraging the Internet and network economic effects—a nod to another favorite book, Net Gain by John Hagel III. When Netflix proclaimed the end of late fees, word of mouth took care of the rest.
This is why NPS has become so important to companies as a way to measure their most important external stakeholders—their customers.
NPS is used by thousands of companies, including many Fortune companies. It provided a framework for thinking about—and managing—in this social media world … our teams call it the love metric. My goal for writing this was to move our industry, still a very nascent one today, to think hard about the power of word of mouth.
This eventually led to our mission statement: What could Blockbuster have done differently?
Have you or the company you worked for used bad profits before? What happened as a result? Tell me below in the comments section.Nov 08, · The Internet Didn't Kill Blockbuster, The Company Did It To Itself Jonathan Salem Baskin Contributor i Opinions expressed by Forbes Contributors are their own.
Blockbuster with two colleagues in for $18 million.8 Huizenga believed that Blockbuster had immense potential because, like McDonalds, it was a one-product business holding national appeal.
9 Huizenga guided the company through a period of expansive acquisition. The failure of Blockbuster is really interesting to me - because so much information is available, it's great to learn from.
Blockbuster is a great example of a business that failed to identify.
Business Lessons from Blockbuster's Failure With Blockbuster's Chapter 11 filing looming, it seems a fitting time to reflect on what went wrong and what businesses can learn from it.
Many would simply label Blockbuster a casualty of Schumpeter’s theory of creative destruction, and in many cases it is, but the fact remains that its current.
Sep 27, · Whatever performance yardstick Blockbuster was using to measure business success and guide strategic planning underestimated the impact of the change. Blockbuster One extraordinary example of the failure to innovate was one of the largest DVD rental companies, Blockbuster.
With a huge high street presence and intense customer loyalty, Blockbuster really was a household name.