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Blockbuster is already under seige, with assaults from Netflix on the movies by mail rentals, and Redbox on the retail front. It's unclear if the move by Blockbuster into the videogame area will affect GameFly, as Blockbuster has already been fighting competitors on multiple fronts.
The result is fewer and fewer new ideas are volunteered by prospective leaders and key team members, and the business suffers from poor customer satisfaction or loss of market share. The challenge is for leaders to really listen to their team and the market, and for every team member to anticipate pushbacks and respond effectively.
In top current companies, such as Google, Apple, and Netflix, cultural strategies that include greater employee freedom and fostering creativity are the norm. It’s easy to see how cultures go astray, for example, when you pay only for sales volume, but expect a high focus on customer satisfaction. Place shapes culture.
In announcing the reviews API, Google presented customer case studies of numerous publishers who shared a lot of evidence that talking to their customers has significantly improved their app ratings, customer satisfaction, and retention. Competing with Apple in this area has been challenging for Google.
For example, according to recent research from Bain & Company , Apple, Netflix, Google, and Dell employees are 40 percent more productive than the average, even though they are no smarter or more experienced. Thus paying for sales volume, when you desire customer satisfaction, will not get you high performance.
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