This week the movie rental retailer Blockbuster closed its remaining 253 Canadian stores. Victimized by pay TV, online rentals by companies like Netflix, and illegal downloading, Blockbuster could no longer compete successfully.
Why did this happen?
Blockbuster got too comfortable. They became too comfortable with their typical brick and mortar locations and were too late to innovate and adapt to the changing habits of consumers. Competitors realized there was an opportunity - an opportunity to capitalize on the convenience factor of not leaving the couch to watch the newest flick (now made possible by technology and speed of delivery).
Another example of a company that got too 'comfortable' with their strategy was The Gap. Think back to around the 2000s. The Gap was a cool, fashionable place to shop. I remember my mother giving gift certificates to The Gap to all of my cousins for Christmas, and watching smiles spread across their faces as they opened their gift. Unfortunately The Gap became boring and continued to offer the same clothes season after season.
Why couldn't The Gap and Blockbuster alter their strategy and get back on track?
By the time a company realizes they need to change their strategy - it's already too late. I'm a true believer that if you're too comfortable in the marketplace, you're doing something wrong.
Check out Gap's recent rebranding efforts:
http://www.youtube.com/user/Gap?blend=11&ob=5#p/u/0/ER-iKU0pntY
I like purchasing from companies who are original. As far as The Gap's rebranding goes, it's a little too 'American Apparel' for me (Helvetica bold anyone?). But you decide. Is Gap too comfortable? Or is their rebranding strategy a winner?
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