Do you remember Friday nights at the video store — the smell of popcorn, crowded aisles and long lines? In most places, those days are long gone. Founded in the 1980s when videocassette recorders were a fixture in U.S. homes, Blockbuster’s business model failed to evolve with the times.
At its peak in 2004, Blockbuster had 60,000 employees and 9,000 stores worldwide. Today, Blockbuster is bankrupt and plans to close the last of its stores by January. The reasons for Blockbuster’s failure are complex, but underlying them was a basic refusal to embrace critical changes in technology and consumer preferences.