If you do not use Social Media for your business, some lessons of Blockbuster’s collapse may escape you, as the warning signs were there but no one monitored their web presence or saw the obvious changes to consumer purchasing patterns, or worse, just paid lip service to them.
Management who understand and appreciate the value of a well-tuned Website and social media strategy shouldn’t be surprised at Blockbuster’s entering into Administration. The obvious impact of the internet on the distribution channels for media products has been apparent for at least a decade. Industry entertainment and media giants have lost revenue as young upstart companies (or visionary leaders of larger ones with) leverage the capabilities of the internet to outperform them. One by one we watch as they go bankrupt because they fail to reinvent their business models to counterbalance the distribution of information online. We help companies develop strategies for managing complex distribution properties and involving many different channels to promote and maintain their presence. Based on what we’ve seen, small companies can learn from the mistakes of the giants.
Here are three important lessons to takeaway from Blockbuster’s failure.
- It’s important to innovate and operate.
- Take advantage of your small size to change quickly.
- See the business field clearly no matter the size of your market share.
So how can this benefit small financial services organisations in the UK? With the advent of the Retail Distribution Review (RDR), now is the time to consider what the FSA is looking to achieve with the review. Is your firm able to identify innovative challenges and move with consumer buying patterns into a more efficient practice? Do you know what your strategy is and where you want to drive your business? Are your processes aligned adequately so that whatever changes occur in your marketplace, you can move quickly to capitalise on the changes before your competitors absorb all the extra capacity.
If you are serious about running an efficient post-RDR business the way a business should be run, you need to go through the RDR Workshop by CEI Compliance. Call Lord Werrell on 0800 689 9 689 Now!
It remains of interest to see what happens with Blockbuster. Impotently preoccupied with closing its brick and mortar stores, it’s hard to see how it will be able to re-group and recover market share. However, in the fast shifting internet and information-age, who knows?