Blockbuster vs Amazon

This is just a thought.

Last week I saw an article about a new kind of retail store – Amazon Go.

They created a new shopping technology so you will never have to wait in line again. Using Amazon Go app you just have to take the products without checkout points.

So, Monday through Friday in Seattle, since  7AM to 9PM, you can shop just using your app, no waiting lines.

This is intersting because when people are buying even much by internet, Amazon, one of the best points to buy by this way are oppening a physical store. They are adapting themselves. They believe people still want to buy in retail stores but there, what people don’t like? And they are trying to solve it.

In other hand I remember about Blockbuster. I searched a bit.

Well, Blockbuster was one of the biggest companies in the world but they went in bankrupt in 2010.

In 2000, Reed Hastings, Netflix‘s founder, flew to Dallas and proposed a partnership to Blockbuster. The answer was no.

Reed Hasting was thinking about a disruptive system, using internet to whatch movies. Instead of charging to rent videos, it offered subscriptions, which made annoying late fees unnecessary. People could whatch the videos how much they wanted or get a new one.

So, no retail locations, less costs, a wide range variety. Surely there were also disadvantages. It was not an idea for that time. But it was really necessary put it apart?

John Antioco, Blockbuster’s CEO was the best on that time. He just fall in love with that business model and did not accept the changes were coming.


The point is – don’t fall in love with your business model. I think that’s what Jeff Bezos are doing right now.


Photo – Sven Scheuermeier by Unsplash.

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