What intrapreneurs in established firms must do to succeed
Successful innovation efforts in established companies require leaders who have the guts to see opportunities and go after them
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In 2011, Redbox made video-game rentals available at each of its thousands of kiosks. The games were a success in their own right: games like “Call of Duty” often rented as well as blockbuster movies.
The innovation also had a profound effect on the performance of other products the company offered. Customers rented more frequently, increased the size of their rentals (selecting both a movie and a game, perhaps), and kept rentals out longer because games take longer to play than movies—all of which made a direct difference to a company that charges per night for rentals.
[This article has been republished, with permission, from Kellogg Insight, the faculty research & ideas magazine of Kellogg School of Management at Northwestern University]