Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.amen brother
Monday, September 19, 2011
What was Netflix Thinking II?
Reed Hastings, Co-Founder and CEO, Netflix fesses up about their pricing blunder. The best part has to do with overall business strategy.
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Companies must be ready to respond to people and what they are doing. It means sometimes reshaping how they do business. Both AOL and Borders are great example of companies that try to be the wall to change which people climbed over and move to new improved way of doing things. Companies must feel the trend set by their customers and not totally ignore its significance because it could be the difference between operating your business or shutting it down. Netflix is feeling some of the pain that AOL and Borders may have felt.
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