Many successful businesses get comfortable and quit looking for new ways to improve their product or service.
Blockbuster is a prime example:
Blockbuster dominated the video market by stocking more hit movies than its smaller competitors. Blockbuster created a market dominating position where they guaranteed that new releases would be available whenever their customers wanted to rent them. Unfortunately, the convenience factor quickly came into play!
Netflix duplicated the Blockbuster model for selection and then added the convenience of never having to leave your home to rent a movie. Blockbuster went from $6 billion in total revenue in 2004 to bankruptcy in 2010 while Netflix went from $500 million to $2.2 billion in revenue in that same time frame. In Netflix’s case, they matched their competition in the area of selection and innovated in the area of convenience
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