Funding Your Own Disruption
5 hours ago
- #business strategy
- #digital disruption
- #innovation
- Kodak invented digital camera tech in 1975 but shelved it, dismissing its potential due to profitable film business.
- Netflix pivoted to streaming in 2007 while its DVD-by-mail service was still profitable and growing.
- The BCG Growth Share Matrix explains the strategic choice: reinvest Cash Cow profits into Question Marks to nurture future Stars.
- Kodak defended its Cash Cow (film) despite accurate internal predictions of digital takeover, leading to bankruptcy in 2012.
- Netflix intentionally diverted attention from its DVD business to fund streaming, treating disruption as inevitable.
- Netflix's Qwikster misstep in 2011, splitting services, caused backlash but was quickly corrected, highlighting the importance of fast feedback.
- Key takeaway: Success depends on funding disruption early, when mistakes are affordable, not just recognizing trends.