Is your company the next Blockbuster? Not a blockbuster hit, but Blockbuster, the company that owned the video rental market until it was upended by an innovative competitor, Netflix. One thing is for certain: If your company isn’t innovating, all of its products or services eventually become commodities. Or they’re toppled by the next Netflix.
When that happens, you have no margin left to spend on research and development, new product initiatives, or anything else that could provide a competitive advantage. Then, your customers will start playing you against the competition, and from there it’s a race to the bottom for further price concessions. By that point, you’re left with reducing costs, overhead, or profit—you’re now in a death spiral toward that going-out-of-business curve.