Is the Life Expectancy of Companies Really Shrinking? – Only Dead Fish

It’s difficult to navigate through all the myriad factors to identify what might really be behind this picture, but perhaps the real story is less about the impending death of large businesses and more about their need to adapt – to move through business and product life cycles more quickly than before, to be more focused on systematic experimentation and organising swiftly around opportunity.

Source: Is the Life Expectancy of Companies Really Shrinking? – Only Dead Fish

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A Look Back At Why Blockbuster Really Failed And Why It Didn’t Have To

The irony is that Blockbuster failed because its leadership had built a well-oiled operational machine.  It was a very tight network that could execute with extreme efficiency, but poorly suited to let in new information.  Antioco’s fatal flaw wasn’t one of intelligence or capability, but a failure to understand the networks that would determine his fate.

Source: A Look Back At Why Blockbuster Really Failed And Why It Didn’t Have To

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Low-End Disruption in Consumer Markets | Tech-Thoughts by Sameer Singh

In the 1960s, General Motors held a ~50% share of the US automobile market and 80% of the industry’s profits. General Motors’ integrated value chain allowed it to dominate the industry in an era where products were still not “good enough” (with respect to performance and reliability). But as automobile performance improved, modular, “low-end” disruptors like Toyota attacked it from below and profits evaporated. Toyota did not succeed by immediately attacking the premium segment of the market. It started with the low-end Corona and “then moved up-market by introducing sequentially its Tercel, Corolla, Camry, Avalon and 4-Runner models, and ultimately its Lexus”. Honda and Nissan followed similar approaches to disrupt integrated incumbents like General Motors, Ford and Chrysler. Now, these disruptors are in turn facing low-end disruption from the likes of Kia and Hyundai.

Source: Low-End Disruption in Consumer Markets | Tech-Thoughts by Sameer Singh

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Epic Fail: How Blockbuster Could Have Owned Netflix | Variety

Barry McCarthy, Netflix’s former chief financial officer, said in an interview with the Unofficial Stanford blog in 2008, “I remembered getting on a plane, I think sometime in 2000, with Reed [Hastings] and [Netflix co-founder] Marc Randolph and flying down to Dallas, Texas and meeting with John Antioco. Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business. Gradually over time, as we grew our market, his thinking evolved but initially they ignored us and that was much to our advantage.”

Source: Epic Fail: How Blockbuster Could Have Owned Netflix | Variety

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Part I: Validate Your Business Model Start With a Business Model, Not a Business Plan – The Accelerators – WSJ

A business model describes how your company creates, delivers and captures value. A business model is designed to change rapidly to reflect what you find outside the building in talking to customers. It’s dynamic and it reflects the iterative reality that startups face. Business models allow agile and opportunistic founders to keep score of the pivots in their search for a repeatable business model.

Source: Part I: Validate Your Business Model Start With a Business Model, Not a Business Plan – The Accelerators – WSJ

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