January 15, 2013
"Downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping."

As HMV calls in the administrators, it’s worth taking a look back at Why Companies Fail—The Rise and Fall of HMV, published last August. In the piece, former HMV consultant Philip Beeching gives an inside scoop on working with the iconic music retailer. The quote above comes courtesy of then-managing director Steve Knott, commenting right after HMV went public in 2002.

Beeching describes his reaction to this response with a thoughtful reminder: “the dotcom bubble had just burst and many people were mistaking this stockmarket meltdown for an internet meltdown.” In other words, hindsight is always 20:20 and it’s easy to scoff at those who turn out to have got something wrong. Nonetheless, the inability to imagine a different way often proves to be catastrophic.

As such, this is a useful take on a sorry and sadly somewhat typical story. Just remember: any time anyone writes something off as a “fad,” hear the alarm bells ringing. It may indeed turn out to be a gimmick of the highest order, but it’s certainly worth taking the time to take another look.

[Story via Tom Weaver.]