Blockbuster Video died a slow death, though profitable for many investors. Blockbuster stores lasted more than a decade beyond original predictions of demise.
Similarity between Blockbuster Video and Barnes and Noble book stores is uncanny: one rented and sold movies in retail stores and was put out of business by electronic delivery of movies; the other sells books in retail stores and online and is suffering from online books delivered electronically to hand-held devices.
You may personally have observed that there may be more quality in a car that costs half as much as one with great luxury: quality and luxury are not the same.
Now that they’re making money again, airlines are scurrying to add luxury everywhere. There are new seating choices with inches more leg room and better seating. There are fully reclining seats on long-haul flights in certain classes.
A wise marketing professor once said that when things go wrong, more often than not, it isn’t because the strategy was bad; it was because the strategy was executed poorly, or, not at all. In other words, nobody made it happen.
William Bonoma at the Harvard School of Business likened it to war. He said, in effect, without a competent, hard-charging sergeant to drive the squad up the hill, no strategy would work.
How Henry Ford developed mass-production is a fascinating story. It's also one that I've had backwards all my life: I believed that Ford was able to reduce car prices for a mass market because of his genius in perfecting mass-production assembly lines.
Actually, the opposite is true. Ford's low prices forced development of mass-production to meet the demand. Hear what Ford, himself, said about it: