S Curve of Business Adaptability
No matter the underlying reason, a business failing to act at a critical inflection point not only robs them of an opportunity to evolve, but also derails the path to long-term continued growth.
Blockbuster is a sad reminder of how established, dominant businesses can trip up at inflection points. In fact, the odds are usually stacked against incumbents in some key ways. Success is a double-edged sword, and as a company grows it loses some of the dynamic flexibility it had as a startup.