Netflix initially started as a DVD rental service and grew, but it soon encountered a crisis with video streaming technology. Nevertheless, it wasn’t feasible to abruptly abandon the existing business and transition to a digital distribution model, highlighting the significant conflict involved! Video streaming technology is not a complementary service to DVD rental; rather, it serves as an alternative. When expanding or improving a business, it’s crucial to clearly understand the defining attributes of the target product or service. Burgers and french fries complement each other, while burgers and chicken sandwiches are substitutes. - Joseph’s “just my thoughts”
As the chef gained fame through broadcasting, restaurant profits actually fell. One would expect higher profits with increased fame; yet, the opposite occurred. The restaurant’s original profit model relied on multi-course meals, but the broadcasts focused on just one or two popular dishes. While customer numbers surged, the average price per order decreased. Additionally, costs associated with running a restaurant have risen due to the influx of patrons. The influence of social media is leading to an increasing number of celebrities; yet, their true feelings can be quite complex. Achieving fame can be surprisingly detrimental. - Joseph’s “just my thoughts”