The story of Blockbuster is not unusual. The vast majority of companies close when conditions in their sector change. Kodak failed to adapt to the shift from paper photos to digital. Nokia could not adapt to the change from simple mobile phones to smartphones. AOL could not adapt to the change from dial-up internet to broadband. My own first business, Pure Software, also failed to adapt to the changes that occurred in its sector because its culture was not optimal for innovation and flexibility.
I founded Pure Software in 1991. At first, we had an excellent culture. We were a dozen people creating something new and enjoying it. Like many small businesses, we had very few rules or policies to restrict us. When the person in charge of marketing decided to work from his dining room because he "thought better" if he could have a bowl of cereal whenever he felt like it, he didn’t need permission from management. When the facilities manager decided to buy fourteen leopard-print office chairs for the staff because they were on sale at Office Depot, she didn’t need to fill out a purchase order or get approval from the financial director.
