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The Innovator's Dilemma
When a new opportunity is incompatible with your business model, you need to start a new company and separate it from the existing parent company. There's a really interesting example we kept very close track of Netflix over time which we've used in our book "Innovator's Dilemma" Blockbuster launched an initiative that was kind of aNetflix knockoff called 'Total Access' The CEO of Blockbuster got fired when he tried to grow same store sales per square foot by launching Total Access. And then Netflix just kind of went back to normal and eventually became the company today.