It’s not at all difficult to save time, money, and energy from bad ideas. Just the reverse actually, when a person wakes up to a good idea, he’s often motivated by its potential, its market shares, and the excitement that comes with it. When a good idea is discovered, founders invest endless hours, borrow substantial amounts of money, take uncalculated risks, and frequently overlook the most obvious to the neutral eye.
A good idea at the wrong time can be more costly than even the worst of ideas.
Over the next several days I’ll post examples of good ideas, that for one reason or another, came to light at the wrong time. See for yourself how the difference between good and wow is timing, and nothing but timing.
What are your thoughts?
Placing movie superstores in major intersections and shopping centers is one example of a great idea, at the wrong time.
Blockbuster ( BBI ) stocks have been forced off the Nasdaq and NYSE and currently trade at 11 cents a share and on the verge of bankruptcy as rival Netflix (NFLX ) hovers around $120 a share.
The bottom line is Blockbuster is on every street corner while Netflix focuses on being inside every telephone.
It’s not too late yet, its biggest problem could turn into a great opportunity. BlockBuster could shrink the size of their stores 90% ( or lease them out ) and benefit from its already established distribution points.
Dell revolutionized the personal computing business by becoming the first to allow consumers to customize computers direct from the factory. By cutting out storefront and retail distribution points, the company was able to carve out a niche.
Once a perfect idea for sophisticated computer pioneers, today, Dell struggles to increase marketshare as mainstream customers prefer to see and touch before they buy.
This morning I received an email from HP offering two day shipping of their most popular configurations ready-built computers. My Ah-ha! moment was that HP had caught on to Dell’s game plan, and with its existing relationships with retail giants like Best Buy, Walmart, and Sam’s Club, HP is the current front runner on everywhere shopping.
Internet and telephone ordering for computers was a great idea 10 years ago, fast forward to 2010, everywhere shopping is forcing everyone to once again reconsider their business model.
Reader’s Digest was once the go-to magazine for the latest information and entertainment. After taking the company into Chapter 11, it emerged from bankruptcy in February with $525 million in exit financing.
Some interesting #s to note:
The company cut the number of issues from 12 to 10 per year and its circulation guarantee for advertisers to 5.5 million from 8 million.
At this rate, I predict the magazine will be out of business in the next 18 months.
A great idea, great product — At the wrong time.
Another name that I see as being a great idea at the wrong time is Radio Shack. While I can’t seem to find a more reliable brand for lithium batteries for watches, electronic devices, and hearing aides, I’m pessimistic that batteries alone will be able to float this old warship.
It is one of the oldest retailers in the U.S. and founded in 1921. At best, RadioShack is a takeover target where rumors of retailer behemoth Best Buy (NYSE: BBY – News) becoming the swallower. I can’t imagine Best Buy wanting a name like Radio Shack in an era where radio has become the least attractive industry in business. With internet, satellite radio, wifi, and live streaming becoming a new world order, it’s no wonder why Radio Shack itself has already begun to rebrand itself as “The Shack”.
If anyone takes over this pre-WWII product, it’ll more likely be for the 7215 (5161 of these are company owned) locations that the company owns.
A likely scenario ( if it were up to me ) would be to refurb the current Shack’s locations into Best Buy Express stores.