“Neither RedBox nor Netflix are even on the radar screen in terms of competition,” he said. “It’s more Wal-Mart and Apple.”
These words – spoken by then Blockbuster CEO Jim Keyes back in 2008 – may not be among the most famous last words but famous last words they were indeed. Blockbuster filed bankruptcy just 2 years later an astonishing demise for a company that in 2004 had nearly $6 Billion in revenue. When you look at those numbers again it doesn’t even seem possible!
Though there were many reasons Blockbuster failed while Netflix and Redbox succeeded, one can be found in Keyes’ own words. In essence it seems he didn’t believe a digital business model could possibly be a threat. Of course hindsight is 20/20, Keyes may have been able to avoid bankruptcy had he recognized these 3 signs that Blockbuster needed a
better digital business strategy.
The “Threat” section of your SWOT jumps off the page
Blockbuster must’ve had significant resources as a $6B company. A simple SWOT analysis would’ve shown that Netflix was gaining traction. That would’ve been the time to investigate how they were going to market, what the “one thing” was that people really liked about Netflix and eventually what to do about it. In this case, Blockbuster should’ve taken a much more aggressive approach to their digital strategy.
Google Analytics is a very powerful tool which captures and reports traffic to your website. By studying it, you take the guesswork out of what’s working and what’s not. Every executive should be familiar with Google Analytics and if you’re not you should start today. If nobody in your company knows what it is you very likely don’t have a digital strategy. In this era of Uber and Airbnb.com, almost every company needs one.
You believe social media is a toy for people with too much time on their hands
Social media is an essential part of every business today. There are 2 critical uses for social media for business: 1. To engage an audience who might eventually do business with you and 2. To listen to what people are saying about your company. There are others (building your brand, outreach, etc.) but these 2 are absolutely critical to your success. If you don’t have a social media strategy, get in touch with us because you need one.
By objectively asking yourself about these 3 signs, you can begin a journey to develop a digital business strategy that will keep you relevant online for years to come.