Blockbuster and Netflix Case Study †Free Samples to Students

Question: Discuss about the Blockbuster and Netflix Case Study. Answer: Introduction The present day business world has become much more competitors and therefore the various companies as well as the business organizations need to constantly modify their strategies and policies in a bid to stay ahead of their competitors and rivals. However, it is often seen that the various companies as well as business organizations fail to take into consideration the latest developments in the technological world or for that matter fail to access the internal and the external conditions of their business environment and therefore often fail to live up to the demands of the market (Gomery 2013). A typical example of this is the company Blockbuster. It is to be noted that the company Blockbuster was founded in the year 1985 and proved to be an instant success (Post 2012). However, the company gradually lost its track and also failed to incorporate the needs as well as the requirements of the customers in the most effective manner. Another aspect which led to the poor performance of the company over the years was the failure of the company to take into consideration the external as well as the internal factors which affected their business (Gomery 2013). This particular report will deal with the various aspects of the company Blockbuster and the factors which led to the failure of the company over time and the rise of other companies like Netflix. Business problems faced by Blockbuster The company Blockbuster founded in the year 1985 proved to be an instant success (Blockbuster.com. 2018). The original idea behind the creation of the company was very appealing to the customers of that time who had to depend on the cable networks for watching the various new as well as the older movies (Norris 2012). Therefore, the rental policy used by the company was very appealing to the customers. However, gradually with the rise of the various cable network providers and also with the change in the needs as well as the requirements of the customers the fortunes of the company changed (Kish 2012). It is significant to note that the company back in the year 1997 was making a profit of $1.5 million and monopolized more 40% of the rental market (Post 2012). However, with the change in the needs as well as the requirements of the customers the business of the company declined. It is to be noted that the change in the needs of the customers specifically the insistence of the company on watching just the new releases hampered the business of the company in a significant manner (Kish 2012). However, to counteract this particular phenomenon the company underwent collaboration with the various movie companies whereby they had to pay just $4 for the DVDs of the new releases and the companies would in turn get 40% of the business done by the DVDs (Post 2012). In addition to this, the rise of the online video streaming websites like Netflix also significant hampered the interests of the company. It is to be noted that the company the Blockbuster since its start relied on the renting of manual DVDs however the online streaming options provided by companies like Netflix was a much reliable as well as preferable option to the company (Norris 2012). Therefore, the business of the company has dwindled significantly in the recent times. Thus, it would not be too far-fetched to say that the failure to take into consideration the recent developments in the technological field s as well as latest innovations seriously hampered the prospects of the company in the longer run. Data collection and its significance Data collection forms an important part of the business process of any business organization or company. Therefore, the various companies as well as business organizations often collect relevant data which are necessary for the process of their overall growth as well as development (Lewis 2013). The various forms of data collection often help the companies as well as business organizations concerned to find out the various needs as well as the requirements of the customers in the best possible manner (Christensen, Raynor and McDonald 2015). Therefore, the collection of data is required so that the various companies as well as the business organizations can take into consideration the needs and the requirements of the customers in the most effective manner and also develop their products and services as per the demands of the customers. It is to be noted that the company Blockbuster in a bid to increase their performance and thereby their annual profit margin should focus on the colle ction of the required data which will tell them the current needs and the requirements of the customers (Christensen, Raynor and McDonald 2015). However, the company did not take into consideration these particular aspects of the customer behavior and therefore the prospects of the company dwindled in the longer run. It is to be noted that one of the significant factors for the decline of the fortunes of the company Blockbuster was the failure to take into consideration the ever changing needs as well as the requirements of the customers and thus they could not maintain their initial rate of growth as well as development (Lewis 2013). Games systems and its failure The company Blockbuster since its foundation in the year 1985 has relied on the renting of the various DVDs related to the movies belonging to the new ones as well as the older ones (Post 2012). However, with the changing needs and the requirements of the customers the company in order to increase the amount of revenue earned by it started its gaming DVDs which enabled the various customers to access the latest games on their computer system (Vander et al. 2012). It is to be noted that this move was made by the company in a bid to increase its profit margin and also to mitigate the amount of competition faced by it from its various competitors. This was a part of the experimental video DVDs launched by the company and lasted only for a shorter duration of time (Vander et al. 2012). The basic aim of the company behind the launch of this particular king of DVDs was to capture the customer base belonging to the younger age which liked to indulge in various kinds of video games. However, over the course of time it was seen that the various customers got bored of the older videos and insisted on having the newer kinds of games. It is significant to note that this particular changing of the customers posed a serious threat to the company since the company relied on the sale as well as the rent of the older games which were likely to bring more amount of profit to the company (Vander et al. 2012). Thus, it can be said be said that this particular experiment of the company also failed to elevate the prospects of the company as here also the company failed to take into interest the ever changing needs and the requirements of the customers. Blockbuster and its customer database The company Blockbuster can take the help of its customer database to improve its prospects in the international market and also to cause its overall growth as well as development (Peterson 2013). The primary importance of the various customer databases is that it tells the companies and the business organizations involved about the diverse needs and the requirements of the customers (Harress 2013). Therefore, the company Blockbuster by accessing its customer database will be able to find out the choices of the customers and the DVDs which they rent most frequently. This will also provide an overview of the buying patterns of the customers and will also help them to devise their strategies for their future growth and development in the most effective manner. In addition to that, this will also enable the company concerned to launch new DVDs in the market by effectively analyzing the needs as well as the requirements of the customers (Peterson 2013). The present day innovations as well as the technological advancements have drastically changed the buying patterns of the customers and the products and the services which they resort (Harress 2013). In this particular context it is significant to note that in the 1980s and 1990s the renting as well as the sale of the DVDs of the movies and videos was a popular trend among the customers and therefore the various companies like Blockbuster took advantage of this particular behavior of the customers (Post 2012). The company Blockbuster following this particular trend capitalized on the renting and the selling of the DVDs not related to the movies but also belonging to the genre of video games and music DVDs (Graser 2013). However, with the development of technology as well as innovations this particular behavior of the customers changed and soon they resorted to the various online platforms which enabled them to stream the videos which the customers wanted to view online itself. It is to be noted that at the present moment this particular trend is being highly appreciated by the customers and this particular behavior accounts for the rise of the various online video streaming websites and companies like Netflix and others (Netflix.com. 2018). Therefore, it can be said that the business of the various video stores is in jeopardy with the changing needs as well as the requirements of the customers and also with the rise of the various online video streaming websites like Netflix, Youtube and others. Recommendation The cause of the various problems faced by the company Blockbuster is its failure to incorporate within its overall business plan and strategic plan the change in the technological field. It is to be noted that the company Blockbuster started in the year 1985 was way ahead of its times as it provided DVD renting and purchasing options to the customers which was not provided to the customers by any other company. The only other option to the customers at that particular point of time was the cable connections which did not take into consideration the needs as well as the requirements of the customers. Therefore, the innovative idea behind the creation of the company appealed much to the customers of that time and that was one of the major reasons for the success of the company. However, with the change in the times as well as the technological environment the company should have modified its strategies. The company just the other present day companies Netflix should take the help of t he technology of online video streaming mechanisms. Furthermore, just the company Disney has undertaken collaborations with Fox Entertainment and is planning to undertake another one with Netflix the company Blockbuster should also undertake similar collaborations in order to enhance its business at the international market and also to incorporate the latest technologies as well as innovations in the framework of the services provided by them to the customers. In addition to this, the process of effective marketing as well as digital strategies will also further enhance the prospects of the customers. Conclusion Therefore, from the above discussion it becomes that changing the outline as well as the focus of the business as per the changing needs and the requirements of the customers is one of the main aspects of the present day business companies and organizations. In addition to this, the various companies as well as the business organizations should also take into consideration the ever changing needs and the requirements of the customers as the customers are more likely to take the help of the services and the products which appeals more to their requirements and needs. It is this particular mistake which the company Blockbuster committed by not taking into consideration the needs as well as the requirements of the customers in the most effective manner. Therefore, it would not be too far-fetched to say that in the present day business world an analysis of the external and the internal environment and also the needs and the requirements of the customers becomes of paramount importance fo r the company or the organization concerned. References Blockbuster.com. 2018.Blockbuster Video Stores On Demand Movies. [online] Available at: https://www.blockbuster.com/ [Accessed 2 Apr. 2018]. Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. 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