INFORMATION TECHNOLOGY

Case Study: Can Blockbuster Stand Up to Netflix



Case Study: Can Blockbuster Stand Up to Netflix

Introduction

Introducing new and updated trends in various aspects of any business is a very important practice. Companies, organizations or businesses that fail to do so will find themselves vulnerable against competitors that are adapting all the new and updated practice. Hence, such companies are endanger of losing their customers and their once strong market positions to their market rivals and competitors. One of the most common case in this context is the competition between Blockbuster and Netflix, the two most recognized video rental firms.

Overview

Established in the year 1985, Blockbuster with no doubts was considered to be the biggest Giant during its peak. With in no time, the company gain control over the market challenging all the rivals through its various unique but effective strategies. With 9100 stores in more than 20 countries all over the world, Blockbuster in its 20 years of business earned a huge market share any company in any filed could only wish for. However, the launch of a firm known as Netflix in the year 1998 changed the market trends and affected Blockbuster in many bizarre ways. Since then, Blockbuster has been making many attempts to gain back its strong market position however has succeed very little in those attempts.

Main issue

There are two basic reasons or factors that contributed majorly towards the downfall of the Blockbuster. First of all, unlike Netflix, the indifference of the company towards online marketing and selling of their products, and the wonders it could have done for the business. Secondly, the fact that instead of focusing on one single strategy alone to compete with Netflix, Blockbuster made things complicated for itself by practicing multiple diverse strategies at the same time.

SWOT analysis

The fact that internet was spreading its roots to various other businesses is convincing enough to encourage any business to explore its benefits and uses. E-books, E-tickets and several other products of different nature were made available to the consumers through internet. Yet, Blockbuster never gave much consideration to the feature of online renting and purchasing of DVDs. Netflix, on the other hand, realized the importance of introducing online services for their customers for both convenience and time saving purposes.

Although Netflix has proved to be a tough and challenging competitor. However, both the two companies have the capability to lead the market. The SWOT analysis will evaluate and asses the status of the two competitors more accurately. The analysis will also point out to the strengths of the company, the areas that lacks behind, the factors that still can be mould by Blockbuster in its favor and the external factors that can contribute towards further downfall of the Company.

Strengths

There are a number of factors that still have the ability to offer Blockbuster the edge it once enjoyed. These include,

Be it affordability, availability, feasibility or personnel choice, there are still a number of consumers who either prefer or are bound to rent or purchase ...