Local store closures reveal need for strategic planning.
(May 18, 2011) Those of us in the strategic planning business regularly point out that one of the better reasons to do strategic planning at least every three years is that the ever-changing environment can fundamentally affect businesses or organizations. That point was illustrated clearly with one closure and one announced closure of two businesses in my neighborhood shopping center. The local Blockbuster video store closed its doors about a month ago, and now BeBop Record Shop has announced that it will be closing May 28.
Blockbuster was affected by online movie rentals and Netflix. Interestingly, Blockbuster put the local Mom and Pop video rental stores out of business. Mom and Pop could not keep up with Blockbuster, and it seems that Blockbuster could not keep up with Netflix. Keeping up with technology was also a factor in the coming demise of BeBop Record Shop, which name says it all.
These are examples of a technology change in the environment. Many other changes – consumer tastes and legal issues, for example – in the environment can cause a business to go out of business if it does not keep up.
Ahh, the management of change.