Latest / The Pivot Podcast with Fexingo: How Businesses Change Direction and Survive Disruption
How Blockbuster Ignored the Streaming Pivot
Blockbuster is often remembered as a cautionary tale, but its collapse wasn't just about ignoring Netflix. This episode explores how Blockbuster's physical store network created a massive financial trap that made pivoting impossible, even when the technology was right in front of them. We examine the specific economics of late fees, real estate leases, and inventory management that locked the company into a failing model while streaming competitors built scalable platforms. The story highlights why operational inertia can be more dangerous than strategic blindness.
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The skinny
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