Many organizations have failed because they are unable to keep up with the needs of the market and adapt to the changes of the rapidly evolving market. The tendency to be too complacent leads to less innovation, especially if the company dominates the market. This leads to laxity, which in turn brings to the gradual collapse of the company.
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Blockbuster Video’s Rental Business is one of the biggest companies that have fallen due to complacency. For a long while, the Blockbuster video was known to be the king in the market, but it failed to cope with the emerging competitors in the digital era. The upcoming players at that time offered something different in the market when it came to renting videos.
The founder of the company, Reed Hastings, decided to fund another company, Netflix, which was one of the upcoming companies, because Blockbuster had become incompetent in their fee charges. Before its downfall, Blockbuster had many opportunities at its disposal. If that were considered, the company would have avoided a worst-case scenario. Netflix approached Blockbuster in the year 2000 when the company was at its prime and offered a 50 million dollar partnership which Blockbuster turned down despite the fact that they could easily afford it.
Blockbuster is now trying to redeem itself by offering video streaming services. If the company had snapped out of its complacent zone and put measures to cope with the emerging competition in the market by embracing innovation that the start-ups like Netflix were capitalizing on, they probably would still be in the limelight. McCombs (2021) states that whether you are running a big company or a small one, it is vital to keep up with the emerging needs of the market.
McCombs, J. (2021). The Consequences of Complacency. Landscape Business. Published. Web.