Startups have a much higher development velocity and eventually become meaningful market players fast
When we look at examples of startups or new market entrants appearing to gain market share, the reaction of established companies has sometimes been remarkably complacent.
- In 1196, Kodak stated that they expected digital photography to be printed rather than shared over digital platforms. As a cautious side note: Kodak acquired Ofoto in 2001 – a platform with the potential of being the precursor of Instagram, but discontinued the idea. The consequence: bankruptcy in 2012 and a business relaunch in a significantly reduced setting in 2013.
- Blockbuster was approached by Netflix in 2000 to partner with them in order to advertise Netflix in their stores – another opportunity arose in 2008, when Blockbuster could have acquired Netflix, but didn’t take the opportunity. The consequence: bankruptcy then in 2010.
- BlackBerry (RIM) delivered an all-time-high business output in 2007 – the year of the iPhone launch. When the then CEO, Lazaridis debated with his Co-CEO Balsillie about the matter of having a touch-screen and displaying a full web-browser on a phone, the Co-CEO said full of complacency “We’ll be fine” – the consequence: BlackBerry left the HW business in 2017 and is still a restructuring case.