Unbundle, Isolate, Rebundle: The Disruptor’s Path

It was the summer of 2007, and Reed Hastings paced back and forth in his Los Gatos office, deep in thought. For over a decade, his company Netflix, had been sending those iconic red envelopes to millions of customers across America. But the writing was on the wall — the DVD rental business was losing steam. Hastings glanced at the Blockbuster store down the road. In its heyday, Blockbuster had been a staple of Americana, the neighborhood place for Friday night entertainment. But now its shelves were bare and the parking lot vacant. Hastings wondered how long the once-dominant chain would last. The problem gnawing at Hastings was how Netflix could avoid the fate of Blockbuster. The solution, he realized, was hidden in plain sight. Customers valued convenience and selection — the physical DVD itself was not important. By unbundling movie selection from physical media, a new model could emerge. In that moment of clarity, Hastings saw the future — on-demand digital streaming that would bring entertainment to people’s fingertips. No more waiting for discs or trips to the video store. By focusing on the core utility customers wanted, Netflix was poised to disrupt itself and transform the industry. Sometimes strategic unbundling reveals a path forward hidden within the familiar. By breaking apart ingrained models and honing in on the essence, innovators like Hastings can reimagine what is possible. The incumbents cling to the security of how things have always been done, missing the transformative opportunities in front of them. For the disruptors, salience comes from asking what consumers truly value. Find that, unbundle it, and anything can change. <a href="https://blog.startupstash.com/unbundle-isolate-rebundle-the-disruptors-path-2b1524692e56">Read More</a>