The multi channel challenge
NYTimes: Why Bricks and Clicks Don’t Always Mix
The story of Netflix over Blockbuster is one of innovation for sure. It's a story of timing and of having the digital rising tide at your beckoning. But most of all, it's a story of channel focus. It's hard enough to manage a business in one channel, let alone two. As recently as 2005, analysts saw Blockbuster as a sure thing. But now, it's clear in hindsight that running a digital business well Could not be done as effectively when managing brick and mortar stores, Blockbuster's managers tried to do.
The story of Netflix over Blockbuster is one of innovation for sure. It's a story of timing and of having the digital rising tide at your beckoning. But most of all, it's a story of channel focus. It's hard enough to manage a business in one channel, let alone two. As recently as 2005, analysts saw Blockbuster as a sure thing. But now, it's clear in hindsight that running a digital business well Could not be done as effectively when managing brick and mortar stores, Blockbuster's managers tried to do.
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