How can companies get out of their own way?

There are tons of examples in the world where we have seen companies fail due to their failure to get out of their own way. Over the last few weeks, we have spoken about strategies that companies need to adopt to not only remain afloat but also succeed. However, there are times when companies miss out of pretty obvious signs in the market or underestimate the power of a rising competition that is creating a small stir in the market.

The best example of this scenario in the recent past has been the downfall of Blockbuster. For a movie rental company, one of the major competitors would be a cheaper and more accessible way to consume content. Video streaming websites, mainly Netflix, had been on the horizon for a very long time, time enough for Blockbuster to buckle up and get ready to fight the turbulence. But a single misstep in not considering Netflix a credible threat impacted them badly. And the rest is history! Much of the generation today does not even remember what Blockbuster was.

When should a company get out of its own way?

I believe that the issue for such problem lies a little bit in complacency. Companies, especially age old ones, are used to doing things a certain way. Their processes are set and their methodologies are deep rooted. In a scenario like this, sure, change is inconvenient. And potentially expensive too. But companies aiming to stay afloat in the market need to realize the potential of a rising competition and make the necessary changes to fall in line with the current trends in the market.

Yet another example is that of the delivery giant, Amazon. The time is not far that Amazon would have almost all sectors of production under its giant umbrella and form its own monopoly. Working its way through immensely tactful strategies, Amazon has taken over tonnes of businesses and put many out of business.

And yet, places like Wa-wa still manage to thrive? Wa-wa started as a family run grocery store working out of gas stations. Quickly, they have spread across a wide region in Pennsylvania. How has Amazon not yet destroyed their presence? Sure, we can get everything we need delivered to our doorstep today. But as long as there are gas stations, I think Wa-wa will continue to make profits and run smoothly? Why is that?

Could it be that having a limited growth strategy or the lack of over ambition is saving Wa-wa from going under? Or is it just a case of Amazon not looking at it as a credible competition?