It has been a long week and we are ready to relax and watch a movie with some friends. Jay and his wife are hosting a group of couples and they have spared no expense to make the evening perfect. There is a cooler outside full of iced down miller lite, and several bottles of champagne are chilled in anticipation of the big movie night. The island counter has a crock-pot with steaming meatballs filling the air with that fresh Italian, basil and garlic smell. Jay summons a few of us to the “media room”, where he has a wall full of DVD movies. There must be a thousand or more carefully categorized by theme. There are so many choices it is almost overwhelming for the group to decide. As I looked at the wall of digital video disc (DVD), I could not help but think back to the days of hopping in the car and taking my kids to the Block Buster Video and how a once dominant company no-longer exists.
It seems obvious to a casual observer today that Block Buster should have pivoted their model and went to a subscription based digital delivery such as Netflix, Hulu, or Sling. How could something that seems so obvious in hindsight have been missed? The answer is shockingly simple, the basic communication process failed. Communication is defined “as interpersonal acts that exchange meaning and information (Schneider, Gruman, & Coutts, 2013, p.126),”(PSU WC, 2020). There were members of management that did see the pivot in the industry and warned senior leadership of the pending doom. Several countries such as China, Japan, and India were already experimenting with digital methods of delivery. In the United States, Napster was delivering music online for free and movies soon followed. There were eventually lawsuits and other copy right issues that would lead to trouble with Napster however, the new delivery model was right before their eyes.
Communication may not be as simple as one person exchanging meaning and information to another. As it turns out there are many pitfalls that can wreak havoc on an intended communication exchange. The potential disruptions or biases are exacerbated when we consider the Global aspects of todays’ economies. When we introduce groups or cross languages or cultures there are additional considerations that must be included.
In Countries like China and Saudi Arabia relationships are important prior to conducting business, this is known as “slow messaging” communication (Abramson & Moran, p.43). Canada and the US are considered “fast messaging” communication cultures and it is acceptable solicit strangers via email (Abramson & Moran, p.43). “A persons’ culture influences how language is formed, how the linguistic communication is understood, and impacts how the language is constructed” (Abramson & Moran, p.49). High-context cultures assumes the person receiving the communication knows the background and less need to be explained (Japan, Saudi Arabia, and Spain are examples high-context cultures). Low context culture like the US and Canada assume receivers need more information and context around the communication (Abrams * Moran, p.51).
There are many other factors that must be considered, the process can be so complex there are models of communication to help senders and receivers understand the basic encoding and decoding of messages (PSU, WC, 2020).
Leaders and global leaders must first and foremost be learners (Abrams & Moran, p. 110). Leaders and followers are influenced by the genetic heritages, which leads for opportunities to learn, train, and develop (Abramson & Moran, p.110). Because we are deeply influenced by our surroundings as we develop, we must remain vigilant and geocentric. If the Block Buster leadership team would have remained open to learning and created a culture that embraced and encouraged the same attitude they may still exist and be a competitive digital provider. Keep learning and working on communication skills, do not be polycentric and closed to integrating other ideas, whether they be local or global. Embrace the learning as an opportunity to train and develop. Do not be a Block Buster!
Reference
Abramson, N.R., Moran, R.T. (2018). Managing cultural differences: Global leadership for the 21st century. New York, NY: Routledge.
Pennsylvania State University WC (2020). Leadership in global context—OLEAD 410 [Online course]. L04 Global communication. Retrieved from https://psu.instructure.com/courses/2075490/assignments/11954486
It was too late for Block Buster to get themselves out of the hole they fell into. Online movie rentals had changed the game because of technological advances and soon Netflix arrived which then absolutely put Block Buster in the dirt with no chance for a comeback. I used a local business near me as an example of this situation in one of my post previously this semester. Their failure was due to a lack of making the right decisions to evolve as a company. I believe that management thought they were so well established and respected that the changes happening around them wouldn’t affect their business. As movie and game rentals progressed into an easy access purchase online is when places like Block Buster closed down. Unless you made the right choices as a leader to climb aboard and use your leadership communication skills to explain the new cultural differences occurring and the changes that will be made within the organization so we can become more diverse as a whole and keep moving forward together.
References:
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Global leaders and intercultural communications. In Managing cultural differences (9th ed., pp. 34-70). Routledge.
Blockbuster eventually attempted to set up subscription delivery mail model, however by the time they attempted to experiment with change in select larger cities, there was already competition and consumers embraced the new companies such as Redbox. As you point out in your comment, active listening includes observing verbal and non-verbal information(Moran, et al, 2014 p.40). Blockbuster’s leadership failed to pivot the business model or make attempts to evolve until it was too late. Blockbuster did not close enough brick and mortar stores and attempt to reduce costs to offset the losses that began to take place across the country. The technology allowed others to come into the movie rental industry and deliver a less expensive, better quality product. Most importantly, the convenience to the consumer attracted new as well as converted previous consumers.
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Global leaders and intercultural communications. In Managing cultural differences (9th ed., pp. 34-70). Routledge.
Thank you for commenting, I appreciate your feedback. Blockbuster leadership failed to listen to the analyst in the entertainment sector who were publishing research on the evolution of the digital technology. There were several research reports from sector analyst that were discussing the pivoting business model from DVD technology to digital streaming and delivery.The leadership also failed to pay attention to the industry as various companies began delivering digital video and music. As you mentioned the second step to Schein’s planned change theory states leaders must put in the effort to unlearn old behaviors. The actions that were be taken and the plan that was executed failed to embrace the evolution of the movie rental industry. The original business model was successful for many years, yet as rental rates began to decline and consumers began to seek alternative sources that were less expensive and more convenient, Blockbuster failed to pivot towards the future direction of movie rentals.
Hi!
I think your post is a great example of the things we learned this week. With Organizational Change first comes willingness to accept that the change is needed. Communication is a large part of success in an organization. As you pointed out, Blockbuster failed to communicate and therefore failed to acknowledge the need for change. In a global context especially, the absence of these key elements will lead to a downfall. You mention Blockbuster not listening, but who didn’t they listen to? Other companies? The advancement of technology?
“No change will occur unless there is motivation to change, and if such motivation to change is not already present, the induction of that motivation is often the most difficult part of the change process” (Penn State, 2020). This is the second step to Schein’s planned change theory. Leaders must put in the effort to unlearn old behaviors. Leaders at Blockbuster did not recognize that technological advancements were the absolute future and therefore lacked the motivation and understanding to change.
Penn State. (2020). OLEAD 410: Learning and change in a global setting. The Pennsylvania State University. Retrieved from https://psu.instructure.com/courses/2075490/modules/items/29697173
Ah yes, the days of heading to the local Blockbuster to rent the latest movie release, great memories!
I believe Blockbuster had an intention to advance with technology because I do remember in my area (Northeast Pennsylvania), there were Blockbuster kiosks where you could still rent movies after all the stores closed. They were few and far between and didn’t last long which I find odd since they were comparable to the current RedBox that can be found at every grocery store entrance these days.
You bring up a good point-why didn’t Blockbuster jump on the DVD mail service like Netflix did? With over 9,000 stores closing in the United States alone, they surely had the inventory to compete (Gourarie, 2020). If senior leadership was made aware of the potential negative outcome as a result of not advancing with technology, as you stated, would you agree then that the listening component of the communication process is where the error occurred? “Listening is at the heart of all successful communications” (Moran et al., 2014, p. 39).
Positive listening behaviors include information gathering which is being able to consume verbal and nonverbal information, and active listening, being capable of comprehending what is being said (Moran et al., 2014). “Listening demonstrates a respect and concern that words alone cannot fully express. It has the unique power of diminishing the magnitude of potential communication problems” (Moran et al., 2014, p. 40). It’s sad to think that something as simple as taking the time to listen is what ultimately caused Blockbuster’s demise.
References
Gourarie, C. (2020, April 15). The last Blockbuster on earth is still open. Commercial Observer. https://commercialobserver.com/2020/04/the-last-blockbuster-on-earth-is-still-open/
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Global leaders and intercultural communications. In Managing cultural differences (9th ed., pp. 34-70). Routledge.