| If there were an Entrepreneur's Hall of
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| | the success of Waste Management in a
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| Fame, Wayne Huizenga would be a charter
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| | completely different industry. While
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| member. Most people recognize the Wayne
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| | Blockbuster was at its apex, he sold the
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| Huizenga as being the former owner of the
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| | business to Viacom. Hauling garbage is a
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| Florida Marlins baseball team, and the
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| | highly needed, but largely unappreciated
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| current owner of the National Football
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| | service. Renting movies is a service that
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| League's Miami Dolphins. These are the
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| | is less important, but much more desired
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| types of gaudy baubles a billionaire
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| | by the public. The same business model
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| entrepreneur collects. However, his
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| | worked perfectly in two totally opposite
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| success came from the most elemental
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| | areas of opportunity.Blockbuster Video
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| business: trash hauling.Mr. Huizenga
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| | and Waste Management made Wayne Huizenga
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| started as a small time cartage operator
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| | one of the most recognizable and
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| for a waste disposal firm in south
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| | successful entrepreneurs of the 20th
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| Florida. He worked his way into sales and
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| | century. Most people with but a small
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| ultimately bought a small firm. In the
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| | slice of this type of achievement would
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| 1960's waste disposal was a local,
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| | be completely satisfied and content. Not
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| independent, mom and pop type of business
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| | so with Wayne Huizenga!Seeking another
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| in the United States as well as in most
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| | fragmented industry, where the
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| industrialized countries. There was no
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| | opportunity to roll-up local and regional
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| scale. Each trash removal firm worked on
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| | outlets would enable repetition of the
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| contracts negotiated with local
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| | Blockbuster Video and Waste Management
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| governments. There was always the fear of
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| | successes lead Mr. Huizenga to the world
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| political winds changing and effecting a
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| | of used car sales and marketing. He
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| contractors future status.From his
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| | immediately recognized the same
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| perspective as a small time operator in a
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| | dysfunctional market forces, absence of
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| highly fragmented industry, Wayne
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| | scalability and pricing inefficiencies so
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| Huizenga knew that he needed a safety
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| | readily apparent in the video rental and
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| net, not wanting to be tied to a sole
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| | garbage hauling business.During the
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| municipality for his firm's sustenance.
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| | 1990's auto leasing became wildly
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| His idea was elegantly simple: he would
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| | popular. These cars are leased for a set
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| build a national firm, with appropriate
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| | term, typically returned with average or
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| leverage and economies of scale, by
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| | below average miles and dealer
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| buying up key independent garbage hauling
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| | maintained. The problem for the
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| firms in strategically important markets.
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| | automobile industry was, and is, the
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| This would provide the strength to expand
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| | inventory glut that occurs as leased cars
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| in every secondary market and standardize
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| | are returned. This created a unique
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| this formerly sclerotic industry.This
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| | opportunity for Wayne Huizenga and his
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| idea evolved into Waste Management. Mr.
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| | favorite business model.He launched Auto
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| Huizenga became a billionaire when his
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| | Nation with a public sale of equity on
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| firm, after ascending to the number one
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| | the New York Stock Exchange. Today, Auto
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| spot as an international garbage-hauling
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| | Nation is the largest seller of late
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| firm, with contracts spanning the United
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| | model used cars in the world. Inventory
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| States, Europe and Asia, was listed on
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| | is vast, offering virtually every popular
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| the New York Stock Exchange. The simple
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| | model in great depth and variety. The
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| idea of consolidating hundreds of
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| | scale and national reach of Auto Nation,
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| independent firms under one roof and
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| | enables pricing to be very sharp, almost
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| standardizing the service menu was a
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| | always significantly lower than local
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| thoroughly disruptive new business model.
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| | dealers. In addition, all prices are
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| Former owners for these independent
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| | non-negotiable and fixed, eliminating one
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| businesses were induced to sell by offers
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| | of the major negatives to purchasing a
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| of stock, options and management
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| | car, haggling over price.Three times, in
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| contracts.With a billion dollars in hand,
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| | three totally differing industries, Wayne
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| Mr. Huizenga could have retired and
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| | Huizenga has applied a uniquely
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| collected art, cars, coins or stamps. He
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| | disruptive business model that has
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| could have hung out with the idle rich.
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| | streamlined sluggish, non-dynamic
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| Instead, he applied the business model
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| | business categories. He started very
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| that created Waste Management to a
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| | small. He thought very big. This is a
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| completely different business category:
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| | perfect template for every prospective
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| home entertainment. In the 1970's, with
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| | entrepreneur to study and utilize. A
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| the market introduction of first
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| | version of this strategy is often
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| beta-max, and subsequently VHS
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| | customized and applied to industry
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| technology, and then the rapid descent of
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| | specific opportunities. This can be
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| retail pricing for home video players,
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| | performed on a local, regional, national
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| thousands of independent retail stores
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| | or international basis.Entrepreneurial
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| popped up offering video for rent. The
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| | business models come in unlimited
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| ability to rent a popular movie tape and
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| | varieties. There is no single, linear
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| play it when desired in the comfort of
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| | textbook approach that fits unilaterally
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| one's home, was a huge change in behavior
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| | for every project. The entrepreneur that
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| and in the method of delivering
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| | will customize a strategy offering
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| entertainment to the masses.Wayne
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| | beneficial disruptive features applicable
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| Huizenga was restless, looking for a new
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| | to their product has the greatest
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| challenge and open to any opportunity
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| | potential for huge rewards. Innovate,
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| that offered huge potential upside
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| | create, and think outside of the box: the
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| rewards. He saw it in a small, but
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| | marketplace has an unquenchable thirst
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| growing firm: Blockbuster Video. Today,
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| | for new, different, exciting products and
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| the consumer recognizes the Blockbuster
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| | business models.Geoff Ficke has been a
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| brand as a generic term for home
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| | serial entrepreneur for almost 50 years.
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| entertainment. 25 years ago, Blockbuster
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| | As a small boy, earning his spending
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| was one of a handful of movie rental
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| | money doing odd jobs in the neighborhood,
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| chains, several sold franchises to fuel
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| | he learned the value of selling himself,
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| growth, all were regional, struggling for
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| | offering service and value for
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| capital to fund expansion, and competing
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| | money.After putting himself through the
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| against locally owned stores. The same
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| | University of Kentucky (B.A. Broadcast
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| fragmented industry distribution channels
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| | Journalism, 1969) and serving in the
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| that existed in the garbage removal
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| | United States Marine Corp, Mr. Ficke
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| business were immediately obvious to
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| | commenced a career in the cosmetic
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| Wayne Huizenga. He pounced.After
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| | industry. After rising to National Sales
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| purchasing Blockbuster Video, Mr.
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| | Manager for Vidal Sassoon Hair Care at
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| Huizenga began the same type of
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| | age 28, he then launched a number of
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| assimilation program he pursued with
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| | ventures, including Rubigo Cosmetics,
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| Waste Management. Small, local video
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| | Parfums Pierre Wulff Paris, Le Bain
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| rental chains were purchased. The Company
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| | Couture and Fashion Fragrance.Mr. Ficke
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| was listed on the New York Stock Exchange
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| | and his consulting firm, Duquesa
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| and the funds raised fueled a rapid
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| | Marketing, Inc. ( has assisted businesses
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| expansion. The leverage and muscle that
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| | large and small, domestic and
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| Blockbuster gained was utilized in
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| | international, entrepreneurs, inventors
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| purchasing product from the major
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| | and students in new product development,
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| Hollywood studios at more favorable terms
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| | capital formation, licensing, marketing,
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| than any competitor could negotiate.
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| | sales and business plans and successful
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| Small locally owned stores could not
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| | implementation of his customized
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| compete and thousands closed, creating
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| | strategies. He is a Senior Fellow at the
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| more expansion opportunities for
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| | Page Center for Entrepreneurial Studies,
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| Blockbuster.Blockbuster Video became a
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| | Business School, Miami University,
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| growth company with a huge following on
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| | Oxford, Ohio.
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| Wall Street. Mr. Huizenga had replicated
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