According to a variety of articles, Sears has decided that the way to save their struggling business is to take on Netflix in a new video streaming venture. Really? Which Ivy-League educated C-level exec came up with this genius idea?
Let’s be honest. Sears hasn’t been a relevant business for decades and somehow, the gang that couldn’t shoot straight will take on Netflix, which has not only beat Blockbuster (an easy win, I think) but Walmart (no easy feat).
To me, this decision goes to the heart of what is different between small businesses and large businesses. I could further say that this is the key difference between large businesses that think like small ones (Netflix) and ogres that think like multi-headed beasts (Blockbuster and now Sears).
Decisions to expand business into new territories are typically based on good rationales in well-run companies whereas larger businesses seem to think, “Oh there’s a business that’s doing well. Let’s compete with them.” No one seems to ask, “Well do we have any expertise in this?”