Lessons to be Learned from HMV, Blockbuster et alEditor - 16th January 2013
Ajay Bhalla, Professor of Global Innovation Management at Cass Business School, explains how the closures of HMV and Jessops are a wake up call to other retailers.
“While the likes of iTunes and Amazon were emerging in the US, British retailers dismissed the online world as fanciful. Not only did HMV fail to wake up to the reality of the shifting retail landscape from high-street to online in the late 1990s, it also failed to transform its business model when new players entered the market.
“While relying on the high-street to generate its cash flow, it never made a serious attempt in generating new revenue streams. For instance, it failed to strike partnerships with emerging platform providers, and made no attempt to challenge its status quo.
“HMV’s demise should serve as a wake-up call for the remaining UK high street retailers, many of whom continue to rely on Amazon to revive their fortunes.”