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Netflix in 2011 Case Solution
Blockbuster did not respond to the initial threat of Netflix by stating that it was just serving a niche market. While Blockbuster had tremendous assets like a Blockbuster store being present at just a 10-minute drive, it could have easily implemented the rental model and the issues that Netflix was facing in the beginning regarding long delivery times would not have been faced by Blockbuster. After four years, Blockbuster adopted a follower strategy. It was set to make efficient use of its existing resources like giving rental coupons to online customers for in-store rentals, and allowing online rentals to be exchanged in store or by mail.
Following questions are answered in this case study solution
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How would you characterize the differences between Blockbuster’s and Netflix’s business models? Was Netflix disruptive? How?
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How would you evaluate Blockbuster’s response? What other theories help clarify the landscape?
Case Analysis for Netflix in 2011
1. How would you characterize the differences between Blockbuster’s and Netflix’s business models? Was Netflix disruptive? How?
Strengths |
Weaknesses |
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Netflix |
Blockbuster |
Netflix |
Blockbuster |
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Opportunities |
Threats |
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Netflix |
Blockbuster |
Netflix |
Blockbuster |
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