How to outsmart your competitors and win the market - A genius tip for businesses and entrepreneurs.

Yes, as your success Buzzer, I will tell you.

Well, if Netflix hadn't played a genius game against its biggest competitor, it wouldn't exist today.

Surprised?

Let me tell you a quick story!

In the 1990s and early 2000s, every movie fan knows Blockbuster. You would, if you were! Blockbuster was a market leader that dominated the global video rental chain.

By the time Netflix came on the scene in 1997, Blockbuster was already a multi-billion dollar company, with over 9000 stores around the world at its peak in 2004, and 84,300 employees. So, naturally, people were curious why Netflix's founders, Reed Hastings and Marc Randolph, decided to challenge the global giant, Blockbuster.

By the year 2000, Netflix was already struggling to expand its customer base and was facing financial losses. Reed Hastings, the co-founder and CEO of Netflix, approached Blockbuster's CEO, John Antioco, with an offer to sell Netflix for $50 million.

Antioco rejected the offer, thinking that Netflix was a niche business that would not pose a threat to Blockbuster's core rental model.

It was more like the story of Harry Potter and Lord Voldemort in the Harry Potter series.

However, Netflix had something that kept it going: DATA. This data helped the company look into the future and create a model that adapted to the sporadic evolution of technology. At that time, Web2 digital media—the online space—was gaining prominence, and Netflix focused on this change.

After receiving an investment of $30 million from Groupe Arnault, Netflix launched an online subscription-based service while Blockbuster stuck to its physical rental and high late fee charges, in addition to poor customer service.

Five years later, Blockbuster launched a similar service as Netflix: an online DVD rental platform. But it was a bit late. By 2006, subscribers for Blockbuster's online services were at 2 million, while Netflix had over 6.3 million subscribers.

Netflix then went on to launch its streaming service, which allowed customers to watch movies and TV shows online without having to wait for DVDs to arrive in the mail – something you and I now enjoy.

By 2010, Netflix had surpassed 20 million subscribers and had a market value of around $13 billion. Meanwhile, Blockbuster filed for bankruptcy and closed most of its stores.

Who could have imagined that as of 2019, the mighty Blockbuster would have only three employees and a single franchised store?

I must say, it's an inevitable decline because I wouldn't want to visit Blockbuster's physical stores to rent a movie for the weekend when I can stream different genres of movies comfortably at home on my TV or my smartphone with my family and friends.

Today, Netflix boasts over 200 million subscribers and a valuation exceeding $200 billion, all because it navigated the transforming market that others saw as a mundane task.

Now, let me tell you the secret to outsmarting your competitor as promised!

The key to outsmarting your competitors and winning the market is to wholeheartedly embrace market change and technological trends. And while it can be scary and uncomfortable, it's also an opportunity for growth and success.

Technologies continually advance, and industries undergo constant transformation, especially with the advent of Artificial Intelligence (AI) technologies like Computer Vision, Machine Learning and Natural Language Processing algorithms. To foster growth and surpass the market, it is essential to stay attuned to the ever-evolving needs and preferences of your customers. This awareness will enable you to adapt your business model accordingly.

Believe it or not, every product, every service, and all marketing channels have a shelf life - if you don't evolve together with the changing technology, you could someday fade into oblivion. However, it's important to note that not just any changes will suffice. Instead, you should seek changes that align with the current trajectory towards the future.

So, whenever you find yourself thinking, "The way we do things now will never change," it's crucial to recall the story of Netflix and Blockbuster that I just shared with you - how an entire industry can be completely disrupted within a very few short years.

Did you miss our last week’s newsletter where we cracked the code on the biggest secret to grow your brand's online presence? Don’t worry, I got you covered. Check it out here: Top 1 Secret to Boost Your Brand's Online Presence.

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Oh, before you go friend …

At VisualHQ, we're not just about providing creative services like UX, brand identity, design, development, and marketing. Our goal is to be your steadfast companion on the journey of startup success. That's why we've crafted The Beam, our weekly newsletter.

Each week, we curate a selection of the most relevant and insightful topics, interviews, and case studies from industry experts and thought leaders. Our team scours the in-depth scenes of business trends, marketing strategies, technological advancements, and emerging markets to bring you the most valuable information to fuel your success. Together, let's ignite your ideas and shine a spotlight on the endless possibilities that lie ahead. Let’s Collaborate!