Failure To Change With The Times
Blockbuster was at the top of their game just a few years ago and felt their position in the movie rentals industry was secure. Big mistake. In fact, the biggest mistake made by a multi-million dollar company. The false sense of position they assumed and failure to change with the times led to their demise. And yet it could have been so easy. If they had recognized that internet was the future, and taken advantage of the opportunity to simply buy a little company named Netflix for $50 million in 2000, they could have been enjoying the fruits of their good decision making today. Unfortunately, they passed on the proposed deal, and today, Blockbuster is out of business and Netflix’s market capitalization is $20 billion. Sorry Blockbuster, you snooze, you lose.