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February 23, 2011 / Brandon Raper

Borders and Blockbuster Behind

bankrupt monopoly

It’s occurred to me lately that there are thousands of corporations who are still living in the 90’s.  And not just because they are still collecting beanie babies or raising animals on their Tomagachis.  These corporations are more or less acting like your grandma who believes the internet is a communist country.

BANKRUPT

Recently they started to go bankrupt, specifically Borders and Blockbuster which have closed local locations in my hometown.  There’s probably more reasons than I can count why they’re not living up to the competition, but there is one specific reason that is not only bringing these once power house corporations down, but wrecking havoc on many others.

Lack of innovation within the higher ranks of a corporation is beginning to show it’s ugly head.  Whether it be product or service innovation doesn’t matter.  In the year 2011 I guarantee you will see many more powerhouse brands fall because a CEO simply doesn’t pull the trigger on creating an internet based project.

BLOCKBUSTER

blockbuster logo

logo

 

I’m sure everyone is aware that Blockbuster is behind the leader in the video and game rental industry.  Redbox and Netflix are destroying brick and mortar rental establishments with low prices and easily accessible product.  They tried to keep up with the competition by creating an online presence like Netflix but the prices were much steeper.  There were some good additions such as you could bring your online rental to the store and switch it out for a store rental free.  Other than that…Blockbuster fell short.  Don’t get me started on Blockbuster’s prices.  Charging $8 for a video game rental is 1/7th of the game price!  That’s insane!  I regress…

BORDERS

borders books

borders books logo


 

Borders might as well be a living clone of Blockbuster.  No innovation, no online presence, failure to stay not only ahead but even neck and neck with the competition.  Barnes and Nobles introduces the Nook, Borders keep’s selling over priced products.  Amazon’s Kindle has been upgraded very steadily, Borders continues to be a simple brick and mortar store.

CEO’s and higher management really need to understand the importance of this generation and how the baby boomers are establishing themselves as technologically able.  The rise of popularity in the internet has put a door in front of corporations that some just can’t pass through.  It’s amazing that before the internet all companies in competition would copy each others strengths in hope to gain part of their market share, yet in 2010 and 2011 they simply watch them run away with their own.

There is bound to be a rise in major bankruptcies in 2011, the hard part is guessing who these companies will be.  Putting my best foot forward and purely guessing certain companies that rise and fall through consumer spending, I’d say a major airline, a few Six Flags resorts, and a major banking/investment firm will fall in 2011.  Effective marketing and innovation could bring brands like Six Flags back to life, but it’s only a matter of time before they are bankrupt due to lack of change.  It’s 2011, not 1999.   Do something with your brand instead of let it slowly drift away.

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One Comment

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  1. Brett Relander / Feb 26 2011 11:31 AM

    Hi Brandon,
    Nice post! Blockbuster and Borders certainly need to step it up…..5 yrs ago.

    I noticed your blog listed in the LinkedIn eMarketing Association group and thought I would check it out.
    You should join our Blogger Community http://tacticalmarketinglabs.com/blogger-opps

    Members get a FREE exclusive first look at new digital marketing solutions, tools, products, services, and software (SaaS) as well as opportunities to contribute to blogs or provide guest posts to expand your audience base.

    Join us, we can all accomplish more together. Please approve this comment so others can find out about the group as well. Thx.

    @BrettRelander

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