All companies face difficult or life-threatening challenges at one point or another, and it is their adaptability and ability to make smart strategic moves which allow them to prosper even in the face of adversity. But those companies that fail entirely to innovate risk becoming a Lava Casualty.
Take for example the current plight of Blockbuster video, via the Christian Science Monitor:
Could the age of video stores come to a screeching, shuddering halt? After years of losing customers to Netflix, DVD vending machines, and video streaming services such as Hulu, the rental chain Blockbuster yesterday indicated that it could soon push for Chapter 11 bankruptcy protection. In a filing with US regulators, Blockbuster reps pointed to "significant liquidity restraints" and a pile of steadily-mounting debt.
"The increasingly competitive industry conditions under which we operate has negatively impacted our results of operations and cash flows and may continue to in the future," Blockbuster reps wrote, according to the Associated Press. "These factors raise substantial doubt about our ability to continue as a going concern." According to the Guardian, Blockbuster lost $569 million last year, and is currently struggling to deal with more than $975 million in debt.
Is your business or industry in danger of becoming the next lava casualty?
[Image via ASDF.]
