Nintendo, a company that is THE videogames, was founded in…1889.

Of course, there were no video games in the 19th century; they were making cards for games. But today, Nintendo is one of the most successful companies that continues to wow and innovate with GameBoy, NES, Wii, and Switch.

How did they accomplish that? Certainly NOT by just making cards for 2 centuries.

Change. That’s what defines a successful business. Knowing when and how to change and when to remain static.

In the digital world, this change means knowing when, how, and why to transition your products into the digital landscape and how to do it with as little pain as possible.

So, today, let’s look at a few examples of companies that did it right…and few that failed.

Netflix: From DVD rentals to streaming giant with a custom web application

The rise of a custom streaming platform

Netflix is synonymous with streaming, so you’d think the company started with it as the primary goal and purpose. But the origins of Netflix are far, far older.

In the late 1990s, Netflix began as an online DVD rental service, offering a wide selection of movies delivered straight to customers’ mailboxes. 

However, as internet speeds improved and streaming technology advanced, Netflix recognized an opportunity to transform its business model. 

The company invested in developing a custom streaming platform allowing subscribers to watch movies and TV shows instantly on their computers.

Their custom web application featured:

• Recommendation algorithms for personalized content suggestions
• Adaptive streaming for seamless viewing on any device
• User-friendly interface for easy content discovery

Disrupting the entertainment industry

Netflix’s digital transformation had a profound impact on the entertainment industry. By offering a convenient, affordable, and highly personalized streaming experience, Netflix quickly gained popularity among viewers.

The impact on Netflix’s business was substantial:

• Net income grew from $67 million in 2007 to $5.5 billion in 2023
• The subscriber base expanded to over 260 million users in 190 countries
• Market share increased as competitors like Blockbuster failed to adapt

And speaking of Blockbuster…

The Blockbuster Cautionary Tale

As Netflix embraced streaming technology and digital transformation, its primary competitor, Blockbuster, failed to adapt quickly.

Blockbuster remained focused on its brick-and-mortar DVD rental stores, underestimating the potential of streaming services and the importance of custom web applications in staying competitive.

There was a point in time when Blockbuster could have bought (!) Netflix, for a paltry sum, refused to do so. Granted, we have no way of knowing if Netflix would have turned the way it did if it had been under the more conservative leadership of Blockbuster, but it does feel like a bit of a missed opportunity in hindsight. 

As a result of its reluctance to embrace digital transformation and invest in custom web applications, Blockbuster filed for bankruptcy in 2010. 

Adobe renovation by embracing cloud-based solutions

Shifting from boxed software to cloud subscriptions

This case is a bit different from the previous one as Adobe was already in the software business, so they had a hand on the pulse regarding other digital trends.

Yet their shift from boxed software to cloud SaaS is still an example of a great understanding of when to shift gears. As the creative industry evolved and collaboration became increasingly important, Adobe recognized the need to transform its business model. 

The company developed Adobe Creative Cloud, a custom web application that offers its popular creative tools as cloud-based subscription services.

Advantages of Adobe Creative Cloud:

• Accessible from anywhere with an internet connection
• Automatic updates ensure users have the latest features and bug fixes
• Streamlined collaboration and file sharing among team members

The benefits of a cloud-based platform

Adobe’s shift to a cloud-based platform through its custom web application brought numerous benefits to both users and the company. 

Adobe Creative Cloud provides users with a more flexible, affordable, and accessible way to use the company’s creative tools. 

For Adobe, the subscription-based model offered:

• Predictable, recurring revenue streams
• Reduced software piracy and unauthorized use
• Opportunities for cross-selling and upselling additional services

In terms of discrete numbers, the shift was, too, successful for Adobe

Revenue Growth:

• 2012, Adobe’s total revenue was $4.4 billion before the complete transition to Creative Cloud.
• In 2022, Adobe’s total revenue reached $17.61 billion, with the Digital Media segment (which includes Creative Cloud) accounting for $12.84 billion.

Subscription Growth:

• In 2013, Adobe Creative Cloud had approximately 1.4 million subscribers.
• By the end of 2022, Adobe Creative Cloud had over 29 million subscribers.

Quark’s Struggle to Keep Pace

While Adobe embraced cloud-based solutions, its competitor Quark, known for its desktop publishing software QuarkXPress, struggled to adapt. 

Quark was slow to recognize the shift towards cloud-based platforms and did not invest in developing a competitive web application. As a result, Quark lost significant market share to Adobe InDesign and other competitors who offered more flexible and collaborative solutions.

The New York Times: pioneering digital news delivery

From print to digital-first

Founded in 1851, The New York Times has long been respected in print journalism. However, as the internet age dawned, the newspaper recognized the need to adapt to the digital landscape. 

The New York Times invested in custom web applications to deliver high-quality journalism to readers online, embracing a digital-first approach.

Key features of The New York Times’s digital transformation:

• Responsive website design for optimal viewing on any device
• Personalized article recommendations based on reader interests
• Interactive multimedia content, including videos and infographics

Yet another way the NY Times managed to keep up with the times and adapt its existing products to modern needs is its purchase of Word.le and the development of other in-house word puzzles and mini-games. 

Effectively, they brought printed crosswords to the modern audience, expanding the user base even to those not necessarily interested in reading the news. 

The success of a digital subscription model

One of the most significant aspects of The New York Times’s digital transformation was the introduction of a digital subscription model. By developing a custom web application that seamlessly integrates with its website, the newspaper was able to offer readers access to premium content for a monthly fee. 

This model has proven highly successful, allowing The New York Times to:

• Grow its digital subscriber base to over 7 million users
• Generate a stable and predictable revenue stream
• Invest in high-quality journalism and innovative digital experiences

Local newspapers struggle to adapt.

While The New York Times successfully navigated the transition to digital news delivery, many local newspapers have struggled to adapt. Smaller publications often need more resources and expertise to develop sophisticated custom web applications, making competing with larger, digitally-savvy news organizations difficult. 

As a result, many local newspapers have faced:

• Declining print readership and advertising revenue
• Difficulty implementing effective digital subscription models
• Challenges in delivering engaging, interactive online content

By embracing a digital-first approach and investing in innovative web technologies, the newspaper has thrived in an increasingly competitive and fast-paced media landscape.

Hasbro: From physical toys to digital experiences

Complementing Traditional Play with Custom Web Applications

Hasbro, a global leader in toys and board games, has long been known for its iconic brands like Monopoly, Nerf, and Transformers. 

While physical toys remain at the core of Hasbro’s business, the company recognized the growing importance of digital experiences in engaging modern consumers. 

To stay relevant and competitive, Hasbro embraced digital to create an additional revenue stream and a self-feeding loop where digital and physical would boost and empower each other. 

Examples of Hasbro’s digital initiatives:

• Monopoly Slots: An online gaming platform that brings the excitement of the classic board game to mobile devices
• Transformers: Forged to Fight: A mobile fighting game that allows fans to collect and battle their favorite Transformers characters
• My Little Pony: Friendship is Magic: A digital companion app that offers interactive stories, games, and activities featuring the popular toy franchise

Not many know that Hasbro also owns Wizards of the Coast, the IP holders for Dungeons and Dragons and Magic: The Gathering, among other things. 

Through licensing deals – Baldur’s Gate 3 is one of the latest and most notorious ones – Hasbro boosts its digital presence while increasing interest in its physical offerings. 

Engaging consumers across multiple platforms

By investing in custom web applications, Hasbro has engaged consumers across multiple platforms, extending the reach and appeal of its beloved brands. These digital experiences have allowed Hasbro to:

• Attract new audiences who may not have been interested in traditional toys and board games
• Provide additional value to existing customers, encouraging brand loyalty and repeat purchases
• Gather valuable data on user preferences and behaviors to inform future product development

Toys “R” Us: a cautionary tale

In contrast to Hasbro’s successful integration of digital experiences, Toys “R” Us failed to adapt to the changing market. 

While Toys “R” Us focused primarily on its brick-and-mortar stores, it struggled to develop a strong online presence and e-commerce capabilities. 

As a result, the company failed to compete effectively with online retailers like Amazon and ultimately filed for bankruptcy in 2017.

Hasbro’s approach to enhancing physical toys with digital experiences demonstrates the importance of adapting to changing consumer preferences in the digital age. 

By developing custom web applications that complement its traditional products, Hasbro has been able to stay relevant, engage new audiences, and drive continued success in a rapidly evolving market.

So, what are the key takeaways from the examples we have explored today? 

1. Recognizing and adapting to market disruptions is essential for long-term success
2. Custom web applications can enable businesses to pivot their models and stay competitive
3. Failing to embrace digital transformation can lead to loss of market share and even bankruptcy
4. Investing in custom web applications can drive innovation, engagement, and growth

Companies that fail to adapt risk being left behind, while those that embrace digital transformation position themselves for success in the ever-evolving landscape.

Conclusion

So, what are the key takeaways from the examples we have explored today? 

1. Recognizing and adapting to market disruptions is essential for long-term success
2. Custom web applications can enable businesses to pivot their models and stay competitive
3. Failing to embrace digital transformation can lead to loss of market share and even bankruptcy
4. Investing in custom web applications can drive innovation, engagement, and growth

Companies that fail to adapt risk being left behind, while those that embrace digital transformation position themselves for success in the ever-evolving landscape.

Partnering with DevPulse for your digital transformation journey

We understand that every business has unique needs and challenges regarding digital transformation. 

By partnering with DevPulse, you’ll benefit from:

• A team of experienced developers who stay up-to-date with the latest web technologies and best practices
• A customer-centric approach that prioritizes your business needs and goals
• Tailored solutions that address your unique challenges and opportunities
• Ongoing support and maintenance to ensure your custom web application remains practical and relevant

Granted, similar to you, we are looking for a partner with whom we can build a long-term partnership; quick turnovers are not our forte. 

That’s why we invite you to have a call to understand if there’s a fit. We have years of expertise and knowledge in molding your existing process to the digital landscape or updating your existing solution. But if we see that a readymade solution better serves you, we’d be more than happy to guide you towards it. 

In any case, let’s talk! It’s free, quick, and no strings attached.