Business Strategy
A long-term plan of action designed by an organization to achieve its goals, create
value, and maintain a competitive advantage in the marketplace.
Business strategy serves as the foundation for a company’s activities, guiding its
approach to the market, its internal operations, and its interaction with the external
environment. It provides a roadmap for achieving sustainable competitive advantage
and long-term success.
Survive & Die
Companies that initially succeed in the market, often for many years but eventually fail
due to various factors.
● Changing market conditions
● Disruptive technologies
● Poor management decisions
● Inability to adapt to new competitive landscapes.
Sears’ Roebuck and Co.
● 1945 $1 Billion in sales - $16 Billion Today
● 3,500 Stores at the peak
● Pioneered Mail order 1% of the entire US economy
● ⅔ of Americans shopped at Sears
● 3,500 Sear & Kmart stores at one point
● June 21, 2023, there are 11 total Sears stores remaining, with 10 in the mainland
US and one location in the US territory of Puerto Rico.
Kodak
● In 1976, Kodak controlled 90% of the film market
● Kodak’s film business alone was worth $16 in 1996 and had a market share of
around 70%.
● Invented the first digital camera
● Bankruptcy in 2012
,Borders
● 40 years in business
● At its peak in 2005, Border operated over 1,200 stores worldwide, including 500+
Borders superstores and 650+ Waldenbooks stores
● In 2006, Borders Group reported annual revenue of $4.1 billion, its highest ever.
● Borders went from $4.1 billion in revenue to bankruptcy in 2011, a span of just 5
years.
Blockbuster
● In 2002, Blockbuster reported revenue of $5.57 billion, its highest ever.
● Peak store count: At its peak in 2004, Blockbuster had over 9,000 stores
worldwide, with about 5,000 of these in the United States.
● Market value: In 1994, Blockbuster was valued as $8.4 billion when it was
acquired by Viacom.
● Decline speed: Blockbuster went from more than 9,000 stores to bankruptcy in
just 6 years (2004-2010).
● In 2000 Blockbuster declined an offer to purchase Netflix for $50 million
Netflix
Market cap: $330 Billion
Survive & Thrive
Businesses that survive through change iteration are companies that successfully adapt
to:
● Evolving market conditions
● Consumerpreferences
● Technological advancements.
These organizations demonstrate resilience by continuously innovating their products,
services, or business models to remain competitive and relevant over time
, Netflix
● Initially a DVD-by-mall rental service.
● Netflix pivoted to become a streaming business
● Currently produces its own original content.
● Stumbles and mistakes along the way.
Vans
● Vans was founded in 1966 as a rubber shoe company in Anaheim, California.
● It started by catering to skateboarders and surfers gaining popularity in Southern
California’s skateboarding culture.
● Vans successfully expanded beyond its initial niche, becoming a lifestyle brand
appealing to a broader audience.
● Vans has maintained its cultural relevance by collaborating with artists,
musicians, and fashion designers.
● The company expanded its product line to include apparel, accessories, and
events like the Vans Warped Tour music festival.
● Vans’ revenue grew from about $400 million in 2004 to over $3 billion in 2019.
McDonald’s
● McDonald’s was founded in 1940 as a barbecue restaurant
● In 1948, they streamlined their meu to focus on hamburgers, french fries, and
milkshakes
