At its peak in 2004, Blockbuster consisted of nearly 60,000 employees and over 9,000 stores. Ten years later, Blockbuster lost significant revenue and filed for bankruptcy protection on September 23, 2010. In January of 2013, the company took the first steps in the process when it shut down 300 stores nationwide. Every store was shuttered shortly thereafter.
On the flip side, twenty year-old sports retailer Under Armour revenue has grown steadily by 30% from 2010-2014. The company has surpassed Adidas as the number two sportswear brand in the U.S., second only to Nike and is on Forbes’ top ten list of most innovative companies in the world.
The two companies were in different lines of business, of course, but something that Under Armour has done very well is to concentrate on customers needs rather than specific products. Blockbuster focused on specific products (and a specific way to consume them), even though consumer behavior changed monumentally during that time.
We can all agree that technology is a disrupter and an accelerator of change that will continue to change consumer buying habits. The key to being ahead of consumer buying habits is to continuously be in the heads of your customers, innovating ways to bring value that may or may not be revolutionary. In the future, continued globalization of the economy and the balancing of economic power will have an impact creating demand for products and services that are not yet invented.
How relevant is your product, service, and business model? What is your frame of reference for making business decisions, the past and present experience, or the knowledge of the future? Historic data may not help you plan for the future nor can you predict the future accurately with the current pace of change. But we believe you can plan for the next five years from where you are today.
Registration is limited to 25 participants and to one participant/ company per industry on a first come, first served basis. (We’ll have one real estate company, one construction company, one construction supplier, etc.).
Read more about Under Armour’s quest to dethrone Nike.
Here’s a look at the real reason Blockbuster failed and why it didn’t have to.
The internet didn’t kill Blockbuster. They did it to themselves.