Unfortunately, I have to add a Should we cry over Blockbuster? to my previous posts Should we cry over HMV? and Should we cry over Jessops?. As BlockbusterUK enters administration, another 528 High Street stores are at risk of closure. Of course, the job losses and the misery that will cause to many families is really sad. But the Blockbuster business model is well and truly dead. The competition comes from every direction – LoveFilm/Netflix/Amazon, then all the on demand services from Sky and BT, then iTunes, then the really cheap DVD purchase price…I could go on.
Are we entering a period where those with ‘baggage’ (in terms of a legacy business model) just cannot react fast enough to the change? Ie better to start with a blank piece of paper (as many of the new leaders have done) than try to change. But there are many – John Lewis/Waitrose is a great example – where astute management HAVE been able to adapt and win in the new modus operandi.
Although many of the current examples are in retail – it applies also to the software market. Moving to SaaS is extremely difficult anyway. Doing it whilst maintaining margins, cash etc at the same time might be impossible. Conversely NOT changing is the route to oblivion. Tech might well be the agent of change – but nobody should believe it is easy!