Passive Aggressive Investing

Whenever there's a sea change in a given industry caused by an upstart, competitor, or new way of doing business there are typically two ways the incumbents can play it: 1. They can underreact, stay on the same course, and hope to keep market share. 2. They can overreact, overhaul their way of doing business, and hope to play catch up. My guess (hope?) is that we'll see plenty of strategy number two by retail and entertainment companies in the years ahead because of the changes caused by Amazon and Netflix in these two areas. This would be a win for consumers if it were to happen.